Archive for July 16th, 2008

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