If it looks like a duck and it quacks like a duck… well, it doesn’t really matter what the Fed says – it’s probably gonna trade darn like a duck, too.
From repos to POMOs & from LSAPs to QE, here’s what every trader needs to know.
Category: Trade
Markets are Hiking Faster than the Fed Can Cut
The Federal Reserve lowered rates today. At least that’s what they want you to believe. In a sign of just how little confidence the front-end has in the Fed, the funding market is hiking rates faster than the Fed can cut them.
Liquidity, Funding & the Gathering Storm
I tend to think about coverage of “Liquidity and the Funding Market” in the same way as “Child Stars of the 90s and the Eurotrash Nightclub Scene”. If they’re making headlines these days, it’s not because things are going well for Liquidity; it’s because they’ve been discovered face-down in a miasmic pool of ever-deepening turpitude & even their best friends are starting to get really, REALLY worried…
3 Ways the Oil Move Impacts Rates
The interest rates market is recovering lost ground from last wk’s smoking carnage on the back of a monster move in the oil market over the weekend. It’s important to understand why this matters for rates, especially given current conditions in the bond market.
5 Things Every Trader Must Know About the Rates Market Move
Two weeks ago, I wrote that the front-end of the interest rates curve was in serious trouble – given that policymakers were keenly aware of their deficiency in handling any selloff; more so than any point I could recall in my two+ decades of Treasury trading.Today, we’ve just witnessed what qualifies as easily the largest 2wk move in the front-end of the Treasury market in 10+ years. So what happened, exactly?
A “Bazooka” Ain’t What It Once Was
Perhaps you’re wondering, having read breathless press accounts of what to expect from today’s ECB, what a “bazooka” buys you these days in Europe?
Well, Turns Out… A “Bazooka” Ain’t All That It Used to Be.