Making Sense

"Success Comes down to rare moments of opportunity. Be open, alert, and ready to seize them" Equity Markets took a beating last night and US yields rose. Market pared the bets on Fed Fund Cuts as the implied pricing for Fed Fund Rates shifted higher from lows of 166 bps to currently 155 bps. Despite the disruption in the Red Sea, crude continues to chop around. British Oil Giant Shell halted shipments via the Red Sea. Christopher Waller in his speech titled “As good as it gets… But will it last” spoke about progress in inflation, improved supply demand in labor markets and tighter financial conditions and restrictive monetary policy. Towards the end of the comments, he said “This cycle, however, with economic activity and labor markets in good shape and inflation coming down gradually to 2 percent, I see no reason to move as quickly or cut as rapidly as in the past. The healthy state of the economy provides the flexibility to lower the (nominal) policy rate to keep the real...

Good morning !! The hard work in trading comes in the preparation. The actual process of trading, however, should be effortless. BoJ monetary policy meeting kept the yield curve unchanged at +/- 50 bps. It is the only Central Bank that has a NIRP (Negative Interest Rate Policy). The bank will continue with its current monetary policy of maintaining its short-term interest rate at minus 0.1% and its long-term interest rate around 0%. The Bank will offer to purchase 10Y JGBs at 0.50% every business day through fixed rate purchase operations unless it is highly likely no bids will be submitted. You may revisit the earlier decision  here . Earlier local media reports suggested that policymakers will be looking to review the side effects of current ultra-easy monetary policy and potential risks following the December move. This had lead to consternation among the market participants with market opinion widely divided between status quo / widening of the band / abandonment of YCC policy....