The Day Today

The Day Today 29 Jan 2014

* The Turkish Central Bank delivers a punchy combination of rate hikes and simplifies matters by declaring the 1wk repo rate the benchmark {fifw NSN N05IG56S9729 <go>} Repo rate:       4.5% –> 10% Borrowing rate: 3.5% –> 8% Lending rate:    7.75% –> 12% * Tsys fall and stocks rally as it appears the Turks have got…

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The Day Today 28 Jan 2014

All eyes on the Turkish central bank tonight with their mysterious midnight emergency meeting. Expectations are of a punchy rate hike, of 250-400bps, to restore some order to the sell-off in the lira. Good summary here: http://on.wsj.com/LiXMsG – This morning the central bank Governor Basci presented their inflation report and tried to calm nerves: *BASCI:…

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The Day Today 24 Jan 2014

Risk aversion rises as EM takes a hit – only this time everyone was short US Tsys now that the Fed is on its way towards the exit of extraordinary stimulus. Consequently US rates are lower, taking the USD with them. So now we have “risk off” characterised by a lower USD, while all the…

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The Day Today 23 Jan 2014

* UK MPC members rush out to tell us the party line from yesterday’s Minutes, that even once the unemployment threshold is breached, there will be “no immediate need” to raise rates – Fisher Says BOE Mustn’t Rush to Raise Rates as Economy Improves {fifw NSN MZUJHN6S9728 <go>} – McCafferty Says U.K.’s Neutral Unemployment Rate…

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The Day Today 22 Jan 2014

* Australian Inflation Accelerates Above RBA’s Midpoint – the trimmed mean rose 2.6%, vs exp 2.3%. Rate cut expectations trimmed back, April 15% from 40% before the data {fifw NSN MZSCYL6K50Y7 <go>} * Bill Gross’ “heir apparent” El-Erian resigns from PIMCO {fifw NSN MZSCVV6KLVRI <go>} * With the NOK at a 5 year low, the…

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