Category Archives: Central banks

Mind the Curve

Posted on June 26, 2018 by

There is concern about the US treasury yield curve. It has flattened, meaning the difference between long term rates and short term rates has narrowed.  Yields on the two maturities are a mere 35 hundredths of a point apart. Some … Continue reading →

Posted in Central banks, Credit, Rates | Leave a comment

Bonds: Is a Massive Selloff in Order?

Posted on June 30, 2017 by

The other day there was a video clip in my Twitter feed from a strategist who stated on CNBC that rates were going much higher in the second half of this year. He went on to say that those who … Continue reading →

Posted in Central banks, Investing, Market Cycles, Rates | Leave a comment

The Fed’s Mandate, US Policy and the Rest of the World

Posted on September 8, 2015 by

The Fed’s objectives, as set by Congress, are to maintain stable prices and to maximize employment.  This “dual mandate” is accompanied by a rarely cited third objective, to maintain moderate long term interest rates.  Those should be a natural outcome of maintaining stable … Continue reading →

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Some Thoughts on the Yuan and Chinese Monetary Policy

Posted on August 25, 2015 by

China has dominated recent newsflow due to its stock market crash and the devaluation of the yuan (CNY).  The latter, I believe, is an attempt to free up the PBoC to conduct domestic monetary policy to deal with the aftermath of … Continue reading →

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All Aboard!

Posted on January 23, 2015 by

The ECB has boarded the Quantitative Easing train.  Perhaps the deflation that is stalking Europe finally prompted the move. Mr. Draghi and the ECB board have had the benefit of observing Fed policy and Bank of England policy working, versus … Continue reading →

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Painted into a Corner

Posted on January 20, 2015 by

On January 15th, the Swiss National Bank (SNB) stopped defending its currency peg of Swiss franc (CHF) 1.20 to the euro (EUR).  It also imposed a -0.75% overnight rate and moved its target for 3 month libor to -1.25% to … Continue reading →

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