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bonds

Bobbys Corner-Open Market-Feb.10.2011

bob-slade-forex-2-150x200Good Morning:

As expected the Bank of England left interest rate s along with their QE program unchanged.
Portuguese bond yields rose-and the ECB was aggressively buying them up.  The spread between Portuguese and German  10 year government bonds has widened again-now at 420 bps.  This is still not as wide as the spreads got when Greece was in the early stages of their debt crisis. 

With global equity markets mostly lower-the greenback rose as demand for the safety of the US currency was the main event in the FX markets overnight.

ECB’s Trichet on the Newswires

  • Indicates bond purchase decision was not unanimous
  • ECB wasn’t pressured into buying government bonds
  • “overwhelming majority” backed bond-purchase plan
  • sees multi-speed global recovery
  • says no time for complacency on inflation risks
  • term deposits one option to sterilize purchases
  • sees upside inflation risks in some countries
  • ECB decisions wont change monetary policy stance
  • says term deposits simple effective to operate

Bobbys Corner-Open Market-April.19.2010

bob-slade-forex-trading-6-150x200Good Morning:

The USD and JPY were both stronger in overnight trading-as Greece’s continued debt issues still are on the front page-and will be for the immediate future.  The Greece/EU/IMF meeting that was scheduled this week-has been put off due to the volcanic ash that has closed airspace throughout Europe.  The yield spread between German and Greek bonds (the premium investors seek to purchase Greek bonds) is 455 basis points- the spread peaked at 470 basis points on April 8.

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