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Twelve Years Unheeded

By |2015-04-06T17:20:08-04:00April 6th, 2015|Bonds, Economy, Federal Reserve/Monetary Policy, Markets|

The June 2003 FOMC meeting is one of those events that has only taken on increased relevance and significance with time. That gathering marked a major shift in monetary policy as it was, particularly with relation to the fomented housing bubble, as the FOMC was debating the zero lower bound. The discussion centered around the proposed monetary alignment that would [...]

Something Perturbs ‘Dollar’ Funding

By |2015-02-04T16:58:25-05:00February 4th, 2015|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Oh Europe. I have a growing sense that US credit markets are repeating the leadup to last October 15, though there isn’t any obvious expression of any such illiquidity (at the moment). For one thing, the eurodollar curve has taken the FOMC’s bluffs in complete stride, in fact doing the exact opposite as you would expect of a very close [...]

Suddenly T-bills Are Interesting

By |2013-10-08T14:23:20-04:00October 8th, 2013|Markets|

Now that the drama in DC is reaching a semi-crescendo, everybody wants to pay attention to the t-bill marketplace. The rapid ascent in shorter-duration bills is certainly abnormal but not at all unprecedented. Bill rates traded much the same in the 2011 version of the debt drama. Money market funds, now ultra-sensitive to any potential “losses”, are likely the primary [...]

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