Swiss National Bank
Further Rise in Treasury Yields
March 15, 2012
The 10-year Treasury yield has climbed to 2.30% from 2.27% at yesterday’s close and 1.99% a week ago. Money is stampeding out of fixed income securities, but equities also took a step backwards. Doubt is mounting that the Fed will refrain from raising interest rates until late 2014. Scheduled U.S. data today include the Philly [...] More
Swiss Economy Very Exposed to Euroland’s Problems
December 15, 2011
The Swissie rose against the euro today when Swiss National Bank officials did not change the currency’s minimum exchange rate of 1.2 per euro following a scheduled quarterly review of monetary policy. In a released statement, however, central bank officials re-promised to spare no effort enforcing the exchange policy introduced September 6, and they predicted [...] More
Suspense in Greek and Italian Politics
November 8, 2011
The dollar is unchanged overnight against the yen and euro but otherwise mixed. The U.S. currency slid by 0.5% against the Swiss franc and 0.1% versus the yuan and sterling but has risen against commodity currencies. It is up 1.5% against the kiwi, 0.5% relative to the Aussie dollar and 0.3% against the loonie. From [...] More
New Worries at the Swiss National Bank about Deflation
September 15, 2011
At the regularly scheduled quarterly review of monetary policy, no further measures were unveiled, but Swiss central bank authorities tied the many actions announced since early August to a fresh threat of domestic deflation and recession caused by a “massively overvalued” franc and worsening prospects in Switzerland’s trading partners and global financial markets. To recap [...] More
A Busy Day of Data Releases, Events, and Market Movement
September 15, 2011
The dollar is lower, with overnight losses of 1.2% against the kiwi, 0.5% relative to the euro and sterling, 0.4% against the Swiss franc, 0.2% versus the Canadian and Australian dollars, and 0.1% against the yen. The yuan is steady. Stocks are up by a strong 2.1% in Germany, 2.0% in France, 1.6% in Britain, [...] More
Swiss Monetary Authorities Ramp Up Actions to Stop Franc’s Rise
August 10, 2011
Share prices in Asia and Europe rose, relieved by the FOMC’s prediction of an exceptionally low fed funds rate until mid-2013. Apparently investors had imagined a sooner tightening than I had. The Fed statement also reiterated that principal on maturing securities acquired in QE1 and QE2 would be reinvested. The Swiss National Bank, which last [...] More
Stocks Down, Swiss National Bank Attacks Franc Strength
August 3, 2011
Calling the franc “massively overvalued at present,” Swiss monetary officials implemented a zero interest rate policy and announced other steps to flood domestic money liquidity. Further measures were promised “if needed” in this effort. The Swissy is 1.1% weaker against the dollar. Share prices in the Pacific Basin fell by 2.6% in Australia and South Korea, [...] More
Quarterly Swiss Monetary Policy Review: No Rate Change
June 16, 2011
As expected, Swiss National Bank policy-makers have retained a 0.0 – 0.75% target range for three-month Swiss LIBOR with a point estimate of 0.25%. These have been the rate parameters since March 12, 2009 following cuts of 25 basis points in October 2008, 50 bps on November 6, 2008, 100 bps on November 20, 50 [...] More
A Frenzied Wave of Risk Aversion
June 16, 2011
Could Greece be another Lehman Brothers collapse? That’s the central theme of international markets where stocks, commodities, and sovereign debt yields are tumbling. Protesting Greeks in the streets have compelled Prime Minister Papandreou, an Amherst grad, to form a new cabinet and seek a vote of confidence from parliament in further austerity that will be [...] More
Swiss National Bank Keeps Monetary Policy Unchanged After Quarterly Review
March 17, 2011
SNB policymakers decided to retain a target range of zero to 0.75% on three-month LIBOR and a point target within that band of 0.25%. Those parameters have defined Swiss monetary policy for the past two years since a cut in March 2009 of 25 basis points in the point objective culminated 250 basis points of [...] More
