Archives: October 2016

Irritated

Poor old Mario Draghi. Yesterday his tone was basically irritated. He admitted they might do more QE, but snapped they hadn’t talked of a taper. Equally it’s all data dependent and even the QE extension needs a bit more of a look. Just look at the response he gave when challenged about market impact of…

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The Day Today 21 Oct 2016

* BOJ Kuroda: “If 10-year government bond yields fall well below our target of around zero percent, we may slow our bond purchases” * Volumes in 10yr JGBs halved since * Belgium still says No to Canada trade deal, holding up the EU *

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Hats and sleeves #draghi

No one expects much from the ECB today. Lower forever, isn’t it? But then think about the Norges Bank recently- who surprised with some hawkishness. And the Bank of Canada yesterday, who discussed a rate cut, apparently unexpectedly. These things are unexpected because everyone has switched off. Yet another sign of the hiatus and complacency…

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Ripening

The hiatus continues – by which we mean that warning signs are building, even as market volumes are light. Yet again, we are already panicking ahead of the panic. The latest BAML Fund Manager survey shows cash levels climbing again – now reaching the highest allocation to cash since 9/11. So what’s left to liquidate?…

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