Beyond the Headlines

September 30, 2022 Headlines

UK Prime Minister Liz Truss reaffirmed the proposed tax cut package that spooked markets earlier in the week as the pound sharply declined 5% to an all-time low of $1.035 versus the US dollar in the aftermath. Ahead of the open, S&P500 futures are essentially...

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September 29, 2022 Headlines

Overnight inflation reports from Germany and Spain weakened US Treasuries yields as the curve resumed its inversion. German inflation accelerated in the latest report and reached double digits for the first time since the Euro was introduced 20 years ago. To smolder...

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September 28, 2022 Headlines

The Bank of England surprised markets and announced it would purchase long-dated government debt in any quantities necessary to restore order to the market. The policy shift comes three business days before the central bank was expected begin quantitative tightening...

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September 27, 2022 Headlines

Risk assets reversed course and started to recover overnight after a proposed fiscal package in the UK sparked a two-day decline. US Treasuries participated in the interim rally as the 10-year benchmark now trades at a 3.89% yield, a level that was last seen in 2010....

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September 26, 2022 Headlines

Concerns escalated over the weekend that the Bank of England would take emergency action to counteract a newly proposed fiscal plan. UK Chancellor of the Exchequer, Kwasi Kwarteng, pledged further tax cuts in a package announced Friday that scrapped the top level of...

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September 23, 2022 Headlines

Treasury yields started the day 5 to 6 bps higher but have since retraced the move and sit close to unchanged. The UK government’s proposed tax cuts sent the pound to its lowest level vs the dollar since 1985. Given the current level of inflation across the globe, the...

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September 22, 2022 Headlines

Treasury yields are leaking 3-5 basis points higher across much of the curve in the wake of yesterday’s FOMC decision and a flurry of rate hikes from other central banks. Regarding the latter, the Bank of Japan would be an exception, deciding to maintain a dovish...

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September 21, 2022 Headlines

Reports that Putin has called up more troops in the war in Ukraine sparked a modest rally in Treasuries to start the day, a rare sight in recent days. FOMC day has finally (and thankfully) arrived. There has been very little buying conviction in the bond market over...

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September 20, 2022 Headlines

The tone in financial markets remains the same this morning, with fewer investors willing to take long positions ahead of tomorrow’s FOMC meeting. Sweden’s Riksbank kicked off this week’s central bank festivities with a 100-basis point rate hike, 25 bps more than...

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September 19, 2022 Headlines

We begin the day with a sell-off In Treasuries once more, with yields 5-7 basis points higher. Markets are preparing for outsized rate hikes from several central banks this week. A Bloomberg article highlights that more than 500 basis points of rate hikes are expected...

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September 16, 2022 Headlines

Treasury yields are leaking modestly higher following a relatively quiet overnight. There was some hawkish talk from ECB leaders, and China reported better than expected economic data (retail sales and industrial production). The 2-year Treasury yield is now at 3.90%,...

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September 15, 2022 Headlines

Treasury yields are 2-5 basis points higher as the market digests several economic releases at 8:30am ET. Initial jobless claims unexpectedly fell to 213,000 last week, the 5th consecutive weekly decline. For August retail sales, the headline rate was higher than...

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September 14, 2022 Headlines

Yesterday was yet another brutal day for financial markets following another hot inflation report. Major equity indices finished the day down 4-5%, and Treasuries blew through any sense of support levels, with the 2-year yield surging nearly 20 basis points to 3.76%....

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September 13, 2022 Headlines

Bonds and stocks are selling off in the wake of another upside surprise in the monthly CPI report. Headline CPI rose 0.1% m/m in August versus expectations of a 0.1% decline, with a 0.8% increase in food costs more than offsetting a 0.5% decline in energy prices. More...

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September 12, 2022 Headlines

A modest rally in Treasuries to start the week has front-end yields 3-4 basis points lower, taking back a little bit of the sell-off late last week. The persistent barrage of hawkish Fedspeak as last week progressed led the market to more fully price a 75 basis point...

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September 9, 2022 Headlines

Treasury 1-5 bps lower to start the last day of the week, and S&P 500 futures are up 77 basis points an hour ahead of the open and poised to finish the week with a positive return. It should be a relatively quiet day for financial markets. There are no major data...

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September 8, 2022 Headlines

Treasury yields are unchanged to slightly lower following the European Central Bank’s 75 basis point rate hike, the largest one-time move in its history. This is the first time the ECB’s deposit rate has been in positive territory since 2012, and the central bank said...

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September 7, 2022 Headlines

Treasury yields turned modestly lower and the curve flatter overnight, and S&P 500 futures are down 22 bps a half hour before the open. Fed leaders have been unified in recent weeks on the need to continue raising the fed funds rate and to keep it elevated until...

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September 6, 2022 Headlines

Treasuries are playing catch-up to yesterday’s global sell-off in government bonds, with yields 5-9 basis points higher in the 2-year to 10-year part of the curve. Equity futures are pointing to a positive open for U.S. stocks following Friday’s 1% sell-off for the...

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September 2, 2022 Headlines

Treasuries rallied following today’s jobs report with front-end yields down 6 to 7 bps. The jobs report showed non-farm payrolls increasing by 315,000 in August, 17,000 higher than expected, and the unemployment rate edged higher to 3.7%. The increase in the...

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