With the market pricing in near certainty of a June rate hike despite the Fed's tacit warning that it would like to see evidence the recent economic slowdown is over, a recurring question among trading desks is why aren't long-dated bonds selling off more, or rather why is the 10 and 30Y seemingly bid the closer we get to the next Fed hike with everyone - from hedge funds, to central banks to primary dealers - buying in surprising amounts.
Authored by Mark St.Cyr,
On this holiday weekend known here in the U.S. as Memorial Day, I would like to make a slight turn in the narrative that many give little to no attention too, yet, is one of the most important underlying principles or fundamentals which helped shape, lift, mold, sustain, and create one of the world’s greatest economic powerhouses bar none.
That “turn” is in remembering: The liberty to create, and own, one’s own business.
Authored by Mike Shedlock via MishTalk.com,
Fed Chairs Ben Bernanke and Janet Yellen re-blew the Alan Greenspan initiated housing bubble.
However, the trend towards higher and higher home prices started well before that dynamic trio made a mess of everything.
The following picture shows the true origin of escalating home prices.
Median Home Prices 1963-Present
To be fair, homes have gotten larger, with more features, better windows, etc.
Focus in this holiday-shortened week will turn to US data, especially NFP, Fed speakers and Eurozone inflation. UK PMIs will also draw attention as elections approach. We also get GDP data from Canada, Sweden and Switzerland. In EM, there are MP meetings in Brazil & Israel. On Monday, with US, UK and Chinese markets closed, Euro FX and bond markets will be on Mario Draghi alert on Monday as the ECB president speaks to the European parliament.
NFP, Fedspeak, Eurozone inflation
Authored by Chris Martenson via PeakProsperity.com,
Perhaps I should start with a disclaimer of sorts. Yes, I realize that the people working at the Federal Reserve, as well as the other central banks around the world, are just people. Like the rest of us, they have egos, fears, worries, hopes, and dreams. I'm sure pretty much all of them go home each night believing they are basically good and caring individuals, doing important work.