For one, eurodollar futures are “obliged” to take account of any threats from the FOMC even though, in the end, they might only be self-fulfilling. Because the Fed has very little actual ability to condition money markets, none of that is truly “real” but there remains the unknown and money dealing agents still seem reticent about any kind of (further) [...]
The primary challenge of trying to unravel wholesale finance is the innumerable and often impenetrable layers. Making important distinctions is quite tricky, as you have to account for additional dimensions above and beyond what might pass for reasonable expectations. The repo market offers a good example of that, as you have supply and demand for cash “helping” set the repo [...]
There were several updates in the crude oil data flow, including the latest “unexpectedly” huge increase in inventory that pushed spot WTI back below $50 yet again. The US EIA estimated that domestic inventory rose by a gargantuan 10.3 million barrels, far exceeding predicted builds. That figure has to include oil being shipped to the US to be stored in [...]
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