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04.06.25 - 01:48
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Stocks Gain on US Jobs Surprise as Treasuries Fall | The Close 6/03/2025 (Bloomberg)
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Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are Winnie Cisar, Creditsights, Danielle Moran, Bloomberg News, Rohit Chopra, Federal Trade Commission, Anthony Chukumba, Loop Capital, Omair Sharif, Inflation Insights, Alix Steel, Bloomberg News, Tony Roth, Wilmington Trust, Sally Bakewell, Bloomberg News, Jessica Inskip, Stockbrokers.com, Mary Ross Gilbert, Bloomberg Intelligence, Sophia Webster, Luxury Shoe Designer, Lorraine Hutchinson, Bank Of America, Brett Rose, United National Consumer Suppliers. (Source: Bloomberg)...
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27.05.25 - 17:42
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Japan Panicks As Yields Explode, Will Trim Super-Long Bond Issuance To Calm Market (ZeroHedge)
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Japan Panicks As Yields Explode, Will Trim Super-Long Bond Issuance To Calm Market
One of the most famous modern aphorisms on Wall Street belongs to Bank of America Chief Investment Strategist, Michael Hartnett, who a decade ago wisely said that "markets stop panicking when policymakers start panicking." Last night, Japan's policymakers - faced with record long-end rates and record paper losses on insurer books - finally panicked.
Just hours after we reported that Japan's life insurance companies are facing staggering losses...
... first Reuters and then Bloomberg reported (which means that this was not a "scoop" but a premeditated trial balloon by Tokyo meant to hit all major news outlets) that Japan will take a page right out of Janet Yellens' Activist Treasury Issuance playbook and will "consider" trimming issuance of super-long bonds in the wake of recent sharp rises in yields for the notes, in an attempt to remove long-dated supply which has slammed prices...
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27.05.25 - 14:27
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Stocks Jump As Japan Panics About Soaring Bond Yields (ZeroHedge)
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Stocks Jump As Japan Panics About Soaring Bond Yields
"Stocks stop panicking after policymakers start panicking"
- Bank of America's Michael Hartnett
US equity futures are higher on US/EU trade optimism as well as global bond yield stabilization after the BOJ is reportedly looking to reduce domestic bond vol following last week's historic selloff which led to record losses on Japanese life insurers and other financial firms. As of 8:00am, S&P futures are up 1.5%, and Nasdaq futures gain 1.6% after Trump said he would extend the deadline for the European Union to face 50% tariffs until July 9; Stocks look like an 'Everything Rally' led by TMT in premarket trading with multiple Mag7 names are up more than 2% including NVDA +2.8% ahead of earnings tomorrow, buoying Semis, and Cyclicals over Defensives. The yield curve is bull flattening amid USD strengthening, perhaps setting the stage for US outperformance. 30Y yields fell six basis points to move below 5% as Japanese lo...
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29.04.25 - 15:12
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BofA′s Subramanian Makes the Case for 7% Treasury Yields (Bloomberg)
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“The idea that stocks have to implode if yields hit 5% is completely false,” says Savita Subramanian, global research head of US equity and quantitative strategy at Bank of America, as she explains why US equity markets are pointing to 7% yields on US Treasuries....
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03.01.25 - 20:27
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Fed Reserves Plummet By $326BN Back Under $3 Trilion, Just In Time For Massive Treasury Cash Flood (ZeroHedge)
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Fed Reserves Plummet By $326BN Back Under $3 Trilion, Just In Time For Massive Treasury Cash Flood
Back in October, when the repo market started cracking under the weight of the Fed's gradual reduction in Reserves and Reverses, and funding spreads briefly exploded, we quoted BofA STIR expert - and former NY Fed repo guru - Mark Cabana, who said that according to his estimates, the Lowest Comfortable Level of Reserves (or LCLOR) is around $3-3.25 trillion given "(1) bank willingness to compete for large time deposits and (2) reserve / GDP metrics (back in 2019, the repo market locked up once reserves dropped to about 7% of GDP not too far from where they are now)."
We bring this up because in the latest weekly Fed balance sheet update, we find that the amount of Fed reserve balances as of Wednesday, Jan 1, tumbled by a whopping $326 billion - the second biggest drop on record - pushing the total from the comfortable level of $3.218 trillion to $2.892 trillion, the lowest since Novemb...
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06.12.24 - 10:03
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$8.2BN WEEKLY INFLOW TO STOCKS, $4.9BN TO BONDS, $3.0BN TO CRYPTO, LARGEST WEEK INFLOW TO CRYPTO OF $11.0BN - BOFA (Reuters EN)
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Cash draws biggest weekly inflow since March 2023, BofA says LONDON, Dec 6 (Reuters) - Investors ploughed $136.4 billion into cash in the week to Wednesday, the biggest weekly inflow since March 2023, when markets were rattled by a regional banking crisis, according to a report from Bank of America on Friday . They also snapped up $8.2 billion of stocks and $4.9 billion of bonds, but sold $0.4 billion of gold, Bank of America said, citing data from EPFR ....
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