Overview: It took some time for investors to recognize that the scaling back of US tariff plans was not part of a de-escalation agreement. There was an explicit acknowledgment by US Commerce Secretary Ross that there was no quid pro quo. The US tariff split was more about the US than an overture to China. …
The seemingly arcane issue of the shape of the US yield curve has percolated into a cause celebre. The difference between the US two-year yield and 10-year yield has been trending down for several years. The last important peak was in late 2013 near 265 basis points. It has been straddling 30 bp in recent …
The Bank of England meets tomorrow. Although no one expects a move, it has little to do with the recent market volatility. The FTSE 100 is poised to snap a six-day 7%+ slide. The FTSE 250 fell for seven consecutive sessions through yesterday, shedding 5.75% in the process. The UK’s 2-year yield slipped about …
Cool Video: Bloomberg Double Feature–BOE Meeting and the Yield Curve Read More »
This Great Graphic was created on Bloomberg. It shows two times series. The yellow line and the left-hand scale show the euro’s exchange rate against the dollar for the past year. The white line depicts the spread between the US two-year and 10-year yield. I show the curve this way to be more intuitive with …