Archive for July 6th, 2016

Central Bank Watch

National Bank of Poland

July 6, 2016

This week’s monetary policy review in Poland left the central bank reference interest rate at 1.50%, its level since a 50-basis point cut in March 2015.  There previously had been nine reductions engineered between November 2012 and January 2014 that cut the reference rate to 2.0% from 4.75%.  A statement released after this week’s two-day […] More

Deeper Analysis

U.S. Non-manufacturing Activity Quickened in June Absolutely and Relative the Euro Area

July 6, 2016

The U.S. Institute of Supply Management’s non-manufacturing purchasing managers survey revealed a 3.6-point increase in June to 56.5, implying pretty robust expansion.  This followed a slowdown in May and raised the rate of expansion to a 7-month high.  The reacceleration was broadly based, with business activity up 4.4 points, orders up 5.7 points, and jobs […] More

Central Bank Watch

Swedish Repo Rate Kept at -0.50%

July 6, 2016

The Swedish Riksbank introduced a negative interest rate of -0.10% in February 2015 cut such subsequently at three later meetings:  by 15 bps in March 2015, 10 bps in July 2015 and, most recently by 15 bps in February of this year.  Officials complement the negative interest rate with quantitative stimulus (QE) via bond buying, […] More

New Overnight Developments Abroad - Daily Update

Blame It on the British: Bond Yield Distress Extended

July 6, 2016

The 10-year Treasury yield touched a fresh low for the move earlier today of 1.318%.  It closed on June 23 at 1.75% just before the shocking Brexit vote result became known.  The 10-year Japanese JGB is off two basis points at negative 0.27%.  The sovereign debt yields in Germany and Switzerland are also below zero. […] More

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