It's been an important week after the FOMC suggested that the Bank sees the US economy as being on a "self-sustaining" recovery and US initial jobless claims fell to their lowest level since 2008. This has caused US Treasury yields to surge more than 20 basis points, which has boosted USDJPY to multi-month highs.
By Kathleen Brooks | Mar 16, 2012 | Forex.com
Bell FX Currency Outlook: The Australian dollar traded in a choppy fashion overnight, in sync with its European counterpart, after yesterday's sovereign ratings downgrades by Moodys.
By Christine Gaylican | Feb 15, 2012 | IBTimes AU
Investors closed their eyes, sold stocks and bought German and U.S. paper in early Monday trading. Rumors ahead of the weekend that Greece was knocking loudly on the default door proved false. However, moves to bolster finances over the weekend with a property tax and a cut in the pay of elected officials seems worse than putting the proverbial Band-Aid on the gunshot wound.
By Andrew Wilkinson | Sep 12, 2011 | Interactive Brokers
Don't let anyone try to convince you that today's low interest rate environment is dull and that opportunity is a thing of the past. Within the space of less than 24 hours the 10-year treasury yield has swung by a full quarter of one percent or 25 basis points sparked by a combination of a slowing economy and what measures might be adopted by the central bank to halt the slump.
By Andrew Wilkinson | Sep 02, 2011 | Interactive Brokers
Government bond trading was buffeted by opposing forces midweek. The recent dashing of expectations evident in most economic reports during the last month has hardly healed. Pressure on yields remains to the downside but the growing hopes for a further reappraisal of the Fed's balance sheet is ...
By Andrew Wilkinson | Aug 31, 2011 | Interactive Brokers
Fed Chief Bernanke attempted to shift some of the burden from the central bank's already-wide shoulders by calling on congress to deliver a short-term fiscal stimulus to aid the economy. The widely anticipated speech failed to address further quantitative easing but reiterated much of what the Fed said in its August 9 policy statement.
By Andrew Wilkinson | Aug 27, 2011 | Interactive Brokers
After an aggressive bout of risk aversion this week, Friday's trading was more subdued. But the scars left across the landscape remained there for all to see. Global government bond yields moved decisively lower for a second week as equity investors dug an early grave figuring that the plunge in valuations signaled a move to a lower growth trajectory rather than greater value.
By Andrew Wilkinson | Aug 20, 2011 | Interactive Brokers
The U.S. benchmark yield sliced through its record low Thursday like a hot knife through butter after forecasters reined in global growth hopes over failure of European authorities to deal with worsening sovereign debt issues.
By Andrew Wilkinson | Aug 18, 2011 | Interactive Brokers
An earlier rally for fixed income fuelled by weak growth and output data faded as equity investors proved a resilient bunch on Tuesday. There were blatant signs of worry sounding from central bankers in Britain and Australia as they warned about the potential for dislocation stemming from fragile financial markets.
By Andrew Wilkinson | Aug 16, 2011 | Interactive Brokers
There was a muted response to the third-straight reading of contraction amongst manufacturers across the Empire State. While the dollar's slide was notable, there was little left for the treasury market to do other than unwind a slim loss.
By Andrew Wilkinson | Aug 15, 2011 | Interactive Brokers
Heading towards the close of a memorable week, fixed income trading has settled down. On the one hand, the S&P downgrade triggered the most volatile market in a year and precipitated the sharpest decline for stocks in three-years. In part its move prompted the Fed to pull a new card from its sleeve as it declared at least a two-year freeze on interest rate policy.
By Andrew Wilkinson | Aug 12, 2011 | Interactive Brokers
Some of the recent enthusiasm for global short-end futures was undone midweek as equity markets underwent a strong rebound. Yet the fall in government bond prices was only a mild one where yield remained depressed with a gloomier bigger picture in which investors are itching to hear the shape of government and central bank response.
By Andrew Wilkinson | Aug 11, 2011 | Interactive Brokers