Bonds and Stocks
Lessening Capital Flow Support For the Dollar
July 16, 2008
The latest monthly U.S. portfolio capital flow data released by the Treasury today revealed a $2.5 billion net outflow for May on the broadest of three definitions included in the report. The narrowest definition showed an inflow of $67.0 billion, 20% smaller than the monthly average over the three prior months. The net inflow, measured […] More
Central Bank Rate Changes in 2008
July 16, 2008
Central banks that have cut benchmark money rates in 2008, which include the Fed by 225 basis points, Canada by 125 bps and Bank of England by 50 bps, are clearly in the minority. In these economies, like many others, economic growth has been weak, but inflation is much higher. Policy in these economies is […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad: Aversion to Risk
July 16, 2008
The carry trade-funding currencies are higher. USD/JPY fell 0.8%, and the dollar is 0.6% lower against the Swiss franc. The greenback also eased 0.2% against the euro and C-dollar but is unchanged relative to sterling and the Australian dollar. The 10-year yield on JGB’s rose 3 basis points to 1.575%, but European sovereign bond yields […] More
