The (Taper?) Day Today 18 Sept 2013

5 years after Lehman collapsed and the most important central bank in the world is about to signal that easy money really is over. Whether the so-called taper is $5bn, $10bn, $20bn, however its split between Tsys and MBS, this marks a significant turning point for the global economy. It’s time for the world to realise that rates are going up, and more importantly, that’s NOT A BAD THING. If you want to worry, then worry about how the new Fed chair (whoever (s)he is) takes back massive monetary accommodation further down the track – and how mortgages will cope with higher long-term rates. But for now, rejoice that the world is on the mend – and we’re just taking the patient out for a nice stroll rather than pushing them straight back up Everest.

* NZ Deputy PM Bill English trying to temper ccy gains: “would prefer NZD a bit lower”, “concerned about property prices”, “expects NZD decline as Fed removes stimulus”, “much of anticipated RBNZ rate rise now priced into NZD” {NSN MTATFX6K50Y9 <go>}

* Riksbank minutes flag macroprudential measures once again for any signs of higher credit growth  {NSN MTB9566JIJUU <go>}

* England House Prices At Record High – wealthy outsiders piling into LDN mkt, up 10% in a year  {NSN MTA1K83HBS3K <go>}

* Spread of corporate debt to govt continues to shrink [bubble building?]: Next Plans First Bond Sale in Two Years as Yield Premiums Drop  {NSN MTB8PW6K50XV <go>}

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