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’Still stubbornly inverted
Joseph Abate at Barclays Capital sure loves a mystery.
Recently, he puzzled over why US GC repo rates were trading stubbornly higher than US unsecured rates…
But in his latest note, he points out that the Fed’s most recent balance sheet update not only fails to answer these questions — it also doesn’t explain surprising further shifts in the US repo market,
Do you notice the end of ZIRP?
There was not much reaction to the latest Federal Open Market Committee statement on Wednesday – and nor should there have been. After all, there’s been no real change in the language employed.
But examine this chart,
I ♥ 1982: Is 10% US unemployment good for the stock market?
Thriller, ET, the opening of Epcot Disney World – culturally speaking, 1982 was evidently a seminal year. But is there another reason for middle-aged fund managers to be dreaming wistfully of their halcyon youths?
The chart below shows what the S&P 500 index did last time the seasonally adjusted US unemployment rate rose above 10 per cent (the level it stands at now).
Fed to cut funds rate to -5% by year end?
From an economic letter by Glenn Rudebusch, senior vice president and associate director of research at the Federal Reserve bank of San Francisco dated May 22 (H/T Greg Mankiw’s blog), emphasis FT Alphaville’s: