As we reported yesterday, Austria was set to make Eurozone history with the first sale of a 100 year bond direct to public markets, bypassing private syndication. It did that later in the day, when the €3.5 billion offering priced tighter than initially marketed, at RAGB 2/2047 +50, at a price 99.502 to yield a paltry 2.112% and with a negligible 2.1% cash coupon.
Despite significant acceleration year-over-year - thanks to a 9.5% surge in gasoline costs - producer price appreciation in August disappointed expectations. PPI Final Demand YoY accelerated from 1.9% to 2.4% (but fell below the 2.5% expectation), rising only 0.2% MoM.
The corest of the core PPI remained below The Fed's mandated inflation target for the second straight month...
But headline PPI jumped to 2.4% YoY... perhaps putting more pressure on The Fed...
For the first day in three S&P futures have pulled back modestly from record levels as some investors cautioned that gains had gone too far, too fast, European shares are mixed while Asian equities extended their longest rising streak in almost two months as continued gains in Japan and India offset the losses in Hong Kong. The dollar ended a two-day advance as TSY yields dropped in what has become a close correlation trade (see below) while oil and gold rose, perhaps in response to the ongoing plunge in bitcoin.
Submitted by Bill Blain of Mint Parnters
Austria 2% for 100 year bond will go down as "financial moment". Wake up and smell the coffee of economic reality
Blain’s Morning Porridge – September 13th 2017
“Hey Satan, paid my dues, playing in a rocking band...”
Authored by Dave Forest via OilPrice.com,
One of the biggest energy stories this year has been Russia’s Rosneft buying India’s Essar Oil - giving the Russian company a firm grip on one of the world’s biggest emerging oil and gas markets.
And this past week, that story got more complex. With Rosneft striking another big deal — drawing in another heavyweight energy nation.
China.