The Fed Gooses the Capital Markets

By: Francis Cianfrocca (Diary)  |  August 10th at 08:34 AM  | 

If you were watching capital markets closely yesterday, you saw a phenomenon that has rarely been seen before. I certainly never have. And it was linked to the Federal Reserve’s policy statement, released about 2:15pm Eastern time. This was an extraordinary statement, containing several rarely-seen features. The first one, of course, was the commitment by the Fed to keep policy interest rates at or near | Read More »

Interest rates: Egg on our Faces

By: Francis Cianfrocca (Diary)  |  June 2nd at 10:34 AM  | 

Just when you thought US Treasury debt couldn’t get more overpriced, it gets… more overpriced. The 10-year yield fell all the way to 2.95% yesterday. It held that level for part of this morning, and now is just under 3%. At least some of this has to be due to the supply disruption caused by the US hitting its debt ceiling. (Existing debt can be | Read More »