Silver as an investment

Category Archives: Reverse Repo

Global Stocks Slide On Trump Probe Report, Fed Indigestion

Is it going to be another May 17, when US stocks tumbled as concerns of a Trump impeachment over obstruction of justice and impeachment surged ahead of Comey’s tetimony? Overnight, S&P500 futures accelerated their decline following yesterday’s WaPo report that Special Counsel Mueller has launched a probe into potential obstruction of justice by Trump… … […]

Axiom: “Red Flags” Suggest China Credit Event Is “Closer Than It Appears”

Submitted by Gordon Johnson of Axiom Capital While we, as well as the few bearish peers we have, have warned of a pending “credit event” in China for some time now – admittedly incorrectly (China has proved much more resilient than expected) – the more recent red flags are among the most profound we’ve seen […]

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 […]

Global Stocks Rise, S&P Futures Make New Record Highs As “Trump Trade” Euphoria Returns

European and Asian stocks, S&P futures, bond yields, the dollar and commodity metals are rose, in some cases making new all time highs, lifted by the latest reemergence of the “Trump trades” as hopeful investors once again bet that the U.S. president’s tax reform plans will boost economic growth and corporate profits, despite another warning […]

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, […]

With Janet Yellen Just Hours Away, Directionless Markets Wait For A Signal

With Yellen’s much anticipated speech just hours away, the already comatose market flatlined overnight in another directionless session, with European stocks and US equity futures practically unchanged, while Asian shares to a two-week low, led by Japan, as investors showed a reluctance to take on risk before Yellen’s speech. The dollar was a tad lower, […]

Currency Wars Escalate As Fed Treasuries In Custody Tumble To 2012 Lows

While the market’s attention has recently focused on what is taking place in the world of unsecured funding, where Libor has been blowing out to 6 year highs, pushing the benchmark to the highest level in 6 years…     … and where the the 3 month/ 6 month and 1 month/3 month Libor bases […]

Connect Just Two Dots, See All The Rest

Submitted by Jeffrey Snider via Alhambra Investment Partners, It’s not an exact fit or correlation, but that’s not the point. One follows the other, though the manner in which they relate is outside of any view. The point here is common sense, unclouded by the increasing absurdity with which this simple relationship is denied: Repo […]

General Collateral Rate Surges To Post Fed-Hike Highs On Quarter End Window Dressing

Over the past few days, the size of the Fed’s Reverse Repos have been rising rapidly, with yesterday’s operation jumping to $143 billion among 52 counterparties, the highest in months as the quarter end collateral scramble goes full throttle. Nowhere is this more obvious than in the overnight general collateral rate. As Stone McCarthy reports, […]

ZeroHedge: “We Don’t Have A Wonderful Explanation What Is Going On” – Reverse Repo Usage Plunges To Program Lows

Be prepared for the next great transfer of wealth. Buy physical silver and storable food. Moments ago the Fed’s RRP operation totaled only $18.7 bln, the lowest level of participation since December 19, 2013 when the maximum bid per counterparty was only $1 bln compared to $30 bid since September 2014. In other words, program […]