Larry's Blog
Thoughts on U.S. Fiscal Policy
January 27, 2011
For three straight years, the federal deficit has hovered around 10% of GDP. Without policy changes, long-term fiscal trends will be unsustainable, but crisis conditions do not exist at present. The 3.44% ten-year Treasury yield is just 24 basis points above its average level since end-2009 and well below the means of 4.45% in the […] More
Central Bank Watch
Malaysia’s Overnight Policy Rate Kept at 2.75%
January 27, 2011
Policymakers at Bank Negara Malaysia retained a 2.75% key rate, its level for the past half-year. The Monetary Policy Committee doesn’t meet again until March 11. There were three rate hikes of 25 basis points each administered previously in March, May and July of 2010, but the Overnight Policy Rate remains 75 basis points below […] More
New Overnight Developments Abroad - Daily Update
S&P Downgrades Japanese Debt, Sending Yen Lower
January 27, 2011
The dollar climbed 0.8% against the yen, 0.7% versus the Australian dollar and 0.2% relative to the Canadian dollar but has lost 0.2% against the euro and Swissy and 0.3% relative to sterling. The dollar edged 0.1% against the kiwi and is flat against the yuan. Equities rose 1.6% in China, 0.9% in Thailand, 0.5% […] More
