sandy beach Posted September 28, 2022 Report Share Posted September 28, 2022 FT: It has been a very long time since we have seen a G7 economy experience what the UK has in the past six days — disorderly moves in its currency and bond markets, a loss of confidence in policymakers, direct central bank intervention in the government bond market, pressures for an emergency rate rise, and a warning from the IMF. -- Mohamed El-Erian https://www.ft.com/content/0f286249-299d-4ec4-8a2a-15b1ae0ba97f Link to comment Share on other sites More sharing options...
sandy beach Posted September 28, 2022 Report Share Posted September 28, 2022 Mohamed El-Erian on Bloomberg: We thought the end of easy money would difficult involving a balance between inflation and recession but we found the result was financial risk. Central banks are now contributors to volatility. Central banks can no longer offer extended Q/E because of inflation. Central banks can not pivot due to changes in inflation metrics – that will take time. If they pivot it will be due to recession or financial market risk. Link to comment Share on other sites More sharing options...
fxfox Posted September 28, 2022 Report Share Posted September 28, 2022 32 minutes ago, sandy beach said: Post a link please if you have one. I have none, sorry Link to comment Share on other sites More sharing options...
sandy beach Posted September 28, 2022 Report Share Posted September 28, 2022 The UK intervention was admittedly a bail-out of insurance companies, pensions systems and the like. The first of many. Let's review the last time this started. Link to comment Share on other sites More sharing options...
fxfox Posted September 28, 2022 Report Share Posted September 28, 2022 https://www.forexlive.com/centralbank/no-comments-on-the-outlook-from-powell-20220928/ Link to comment Share on other sites More sharing options...
sandy beach Posted September 28, 2022 Report Share Posted September 28, 2022 BANK OF ENGLAND CANCELS SPEECH ON BALANCE SHEET REDUCTION BY ANDREW HAUSER, WHICH HAD BEEN DUE ON SEPT. 29 Link to comment Share on other sites More sharing options...
Jimi Posted September 28, 2022 Report Share Posted September 28, 2022 2 minutes ago, sandy beach said: BANK OF ENGLAND CANCELS SPEECH ON BALANCE SHEET REDUCTION BY ANDREW HAUSER, WHICH HAD BEEN DUE ON SEPT. 29 Market participants cancel balance sheet reduction.... Link to comment Share on other sites More sharing options...
sandy beach Posted September 28, 2022 Report Share Posted September 28, 2022 Wait what? "White House officials are quietly preparing for the potential departure of Treasury Secretary Janet Yellen after the midterms" What does Janet know that we don't? https://www.axios.com/2022/09/28/janet-yellen-treasury-midterms-shuffle Link to comment Share on other sites More sharing options...
sandy beach Posted September 28, 2022 Report Share Posted September 28, 2022 4 minutes ago, Jimi said: Market participants cancel balance sheet reduction.... ROTFLOL Link to comment Share on other sites More sharing options...
fxfox Posted September 28, 2022 Report Share Posted September 28, 2022 6 minutes ago, Jimi said: Market participants cancel balance sheet reduction.... That‘s definitely their interpretation. Also that other CB’s follow the step of the BoE is a given for them. That‘s why we are up today. Link to comment Share on other sites More sharing options...
fxfox Posted September 28, 2022 Report Share Posted September 28, 2022 https://www.forexlive.com/centralbank/boes-bond-buying-was-due-to-liability-driven-investment-and-links-to-pensions-report-20220928/ „What it sounds like isn't direct pension bond holdings but a pension (or pensions) with investments in a fund that would have blown up today without a BOE bailout. Whatever it was, it was bad enough to send the BOE into action. Of course, this is also the kind of thing you'd leak if you were looking for cover -- no one wants to see pensions hurt.“ Link to comment Share on other sites More sharing options...
Jorma Posted September 28, 2022 Report Share Posted September 28, 2022 What about those Special Drawing Rights. One way or another they are going to have to come up with some money or near money to calm things down. Don't forget the war, as low level as it seems to be. The CB's have to support governments during wartime. Just saying as a general thing. Link to comment Share on other sites More sharing options...
Jimi Posted September 28, 2022 Report Share Posted September 28, 2022 1 hour ago, sandy beach said: The rate of the 30-year dropped 86 basis points overnight! Now it's over 110 bps. Link to comment Share on other sites More sharing options...
sandy beach Posted September 28, 2022 Report Share Posted September 28, 2022 1 minute ago, Jimi said: Now it's over 110 bps. Bond markets are experiencing "excited delirium." Link to comment Share on other sites More sharing options...
fxfox Posted September 28, 2022 Report Share Posted September 28, 2022 A low is in. Little doubt about that. We would have crashed today. But the CB’s were there. That‘s all. Link to comment Share on other sites More sharing options...
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