It takes time even for a powerful eruption of deflationary money to get sorted into the real economy. Nothing goes in a straight line and even big changes don't just happen right away. The last time, Euro$ #4, it began early in 2018 triggering all kinds of financial disruptions and monetary fireworks. The same familiar indications, rising dollar, flattening and [...]
The 2-year Treasury right now is the key point, the spot on the yield curve which is influenced mostly by potential alternative rates including those offered by the Federal Reserve. Because of this, the market for the 2s is looking forward at what those alternate rates are likely to be, then pricing yields accordingly. Since the FOMC sets those alternative [...]
What happened in October 2021? Another year’s Halloween, sure, some beerfest gluttony around the world. For all the happy revelries in that month the financial markets took a decidedly ominous turn. It hadn’t exactly been all rainbows and unicorns in them before then, yet they were at least stable to slightly optimistic about the future for 2022 or beyond.The list [...]
When even Bloomberg can’t help but notice, not just notice but then write about it, that’s significant. Normally a staunch water carrier for the official Federal Reserve position, these curves getting bent so far out of what would be better shapes aren’t so easy to just dismiss and ignore any longer. Jay Powell says household and business finances are holding [...]
The Federal Reserve did something today, or actually announced today that it will do something as of tomorrow. And since we’re all conditioned to believe this is the biggest thing ever, I’ll have to add my own $0.02 (in eurodollars, of course, can’t be bank reserves) frustratingly contributing to the very ritual I’m committed to seeing end.We shouldn’t care much [...]
If only, like in the aftermath of the Apollo 13 explosion, we could just radio Houston to get started in figuring out just the way out of our fix. Mission Control would certainly buzz all the right people with the right stuff, summoning the best engineers and scientists from their quiet divans to the frenzied and dangerous work ahead. Sadly, [...]
Balance sheet capacity as an intangible (and deeply misunderstood) monetary property is the biggest motivating factor behind changes in or to the offshore, shadow ledger-money reserve system. The eurodollar. Since it is a distributed ledger shared amongst, and kept by, the big-bank global banking cabal, its members’ ability to expand their own individual balance sheets contributes to the overall increase [...]
Following up on recent changes to the eurodollar futures curve, the inversion came back (less upside down) by only a couple basis points in trading today, with most of the curve unchanged. There was only modest selling in futures toward the back end, the curve lifting a touch off yesterday’s recent low point. Far more important than that, the inversion [...]
I’ve said since it first showed up on December 1 to keep the eurodollar futures curve in the back of your mind. It wasn’t likely to change all that much in its first stage of minor inversion. The mere fact it had gone upside down at all regardless of where on the curve or by how much was already a [...]
I guess I took my own advice a little too literally. I did write that when the eurodollar futures curve first inverted, it was going to be dull. Didn’t start out that way, of course, with a small bit of theatrics right during that front week in December when the inversion first showed up. Ever since then, it has stuck [...]
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