Silver as an investment

Category Archives: Repurchase agreement

Mediocre, Tailing 30Y Auction Concludes This Week’s Treasury Issuance

With the 30Y trading comfortably in repo today, with no tightness as indicated by the +0.7% repo rate, it seemed possible that the auction would join this week’s previous 2 auctions of 3 and 10 Year paper by printing with a modest tail. So when the Treasury announced results from today’s 29-Year 10-Month reopening, few […]

Will The Fed Dump Bonds In The Open Market?

According to William Dudley, the president of the Federal Reserve bank of New York, we might see the Federal Reserve reducing the size of its balance sheet sooner rather than later. Whilst Dudley seemed to have been hinting at just letting the securities on the balance sheet mature and take the cash out of the […]

China Manufacturing PMI Jumps To Five Year High

China’s reflation story (on the back of a record amount of debt created last year) was put on display on Friday morning when both the Chinese manufacturing and non-manufacturing PMI rose more than expected, with the Manufacturing PMI rising to a level not seen since April 2012. According to the NBS, China’s Mfg PMI rose […]

PBOC Injects Hundreds Of Billions Into Chinese Banks After Sudden Defaults In Interbank Payments

As is customary virtually every time the Chinese central bank commences some form of tightening, overnight the PBOC injected “hundreds of billions of yuan into the financial system after some smaller lenders failed to repay borrowings in the interbank market”, according to people familiar with the matter. According to a brief note by Bloomberg, Tuesday’s […]

Investors Admit Stocks Are The Most Overvalued Since 2000, Rush To Buy Them Anyway

There is something ironic in the latest monthly Fund Manager Survey from Bank of America. On one hand, a net of 34% of survey respondents said equities now the most overvalued in the past 17 years, in other words either fund managers were still in middle school when it happened and don’t recall the 2000 […]

Credit Suisse “Climbs The Wall Of Worry”, Raises S&P Target To 2,500 From 2,350

Following bearish reports from Goldman (which tactically downgraded stocks to Neutral for the next three months just hours before the Fed rate hike), RBC and JPM’s head quant Marko Kolanovic over the past week, overnight Credit Suisse decided to take the other side of the trade and hiked its year end forecasts for the S&P500, […]

Kolanovic: We Expect “Near-Term Market Weakness; Suggest Reducing US Equities”

First Goldman, then RBC, and now JPM’s top quant. One month after JPM’s head quant Marko Kolanovic warned that volatility is about to return and could lead to “accidents”, the market timer also called “Gandalf” elsewhere for his prognosticative skills is out with a fresh warning, predicting “market weakness in the near-term” adding that he […]

Manhattan Luxury Housing In Freefall: J.Crew CEO Slashes Tribeca Loft Price By Over 40%

While in recent weeks we have documented various instances of sharp pullbacks in the ultra-luxury segment of New York’s housing market (here, here and here), a dramatic example of just how sharp the drop in the high-end housing segment has been comes courtesy of Mansion Global which reports that J. Crew CEO Mickey Drexler has […]

Mediocre Demand For “Tailing”, 7Y Treasury

If Tuesday’s 2Year auction surprised to the upside thanks to trading rather special in repo, and yesterday’s 5Y auction was poorly received with no repo tightness, then today’s 7Y auction of $28 billion in Treasuries was set to be the most disappointing of all, after it was trading at a generous +0.50% in the repo […]

China Drains CNY715 Billion In Liquidity After Fifth Day Without Reverse Repo

What a difference three weeks makes. On January 18, heading into the Lunar New Year holidays, we reported that the PBOC had injected a record 1.04 trillion yuan into the liquidity-starved banking system in an attempt to avoid a liquidity crunch as telegraphed just days prior by dramatic surge in short-term repo rates. Since then, […]