interest rates

The Chinese 2-5 year swap spread has flattening to 1 basis point. The last time it was so flat was 2008.

A stalemate could mean selective default. However, my sense is that the bonds themselves will be paid first. Other government expenditures will not get paid and that means a hardship for those who expect the money, whether companies doing…

Coal is one of many natural resources which are in short supply. This article provides one example from India. Jeremy Grantham believes that peak resources is a phenomenon which will pose problems for the global economy in the future. He…

You tell me.

At the weekend, I saw three articles asking essentially the same question about sovereign debt crisis contagion: why Italy and why not Japan (the US or Germany)? Here's my answer.

Rather than just send you to the link of Chairman Bernanke’s prepared remarks, I have coopied it hear and underlined the part you should pay attention to

Fear mongers want you to be scared to death that interest rates will skyrocket. As I have said many times in the past, long Treasury rates reflect inflation and interest rate expectations. Full stop. The default risk isn’t there since…

Investors should consider monitoring the euro's risk reversals to compliment the analysis of spot. The current reading suggests the market less comfortable with long euro exposure than the relative resilience in the spot market would seem…

Dollar is little changed ahead of today’s ECB meeting and ADP report; stocks/commodities are steady. BoE holds steady, ECB is expected to deliver a 25bps rate hike; market focus likely to be on comments. Brazilian policy makers focus on…

Over the rest of this year, PBOC will continue to use a combination of policy rate hikes, reserve requirement hikes, and currency strength to help limit inflation pressures. How much more can we expect, and where do we stand in the process?…