Interest Rates 02 (Nov 14 - Dec 25)

[behappyalways]

Bank of Canada Cuts Rates For Third Consecutive Month, Says "Expect Further Cuts"
https://www.zerohedge.com/markets/bank- ... rther-cuts

[winston]

World braces for tectonic shift as rates head south

A 36-hour monetary rollercoaster will start with the Federal Reserve's probable decision to cut interest rates on Wednesday, and finish on Friday with the outcome of the Bank of Japan's first meeting since it raised borrowing costs and helped sow the seeds of a global selloff.

The Fed decision will take center stage, with bond traders are once again ramping up wagers on a half-point interest-rate cut by the Fed, just days after that bet seemed all-but-over.

The likelihood of a 50-basis-point move climbed to 40 percent last Friday, up from as low as 4 percent earlier in the week. The repricing added to a rally in US government bonds, lifted small-cap stocks and weighed on the US dollar.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... head-south

[behappyalways]

September 2024 has been the biggest month of monetary easing since April 2020.
https://x.com/AyeshaTariq/status/1839621321396834420

[winston]

Traders wipe out bets on big fed cuts as jobs data hits bonds

The chance of a half-point rate cut in November was priced out, with the contract showing 25 basis points of easing now expected

Source: Bloomberg

https://www.businesstimes.com.sg/intern ... hits-bonds

[winston]

The Fed Cut Rates… So Why Are Mortgage Rates Climbing?

by Andrew McGuirk

Mortgage rates have actually climbed since the Fed’s decision.

The fed-funds rate is the interest rate that banks charge each other to borrow money overnight. It’s also referred to as the “overnight” rate.

Financial markets by definition are always forward-looking. They’re trying to predict what’s coming next.

Investors have started to demand higher returns to hold longer-term bonds, which has also pushed mortgage rates up.

Markets are always one step ahead. They price in expectations long before we see an official policy move. The Fed’s actions often grab the headlines… But to make informed decisions, always keep an eye on the bigger picture.

Source: Daily Wealth

https://dailytradealert.com/2024/11/05/ ... e_vignette

[behappyalways]

Great graphic! BoJ out here really on a different vibe altogether
https://x.com/Germit13/status/1864000496526143756

[behappyalways]

Swiss National Bank Surprises With Jumbo Rate Cut
https://www.zerohedge.com/markets/swiss ... o-rate-cut

[winston]

by behappyalways:-

ING looks for US 10-year yields to hit 5.5% towards the end of 2025

https://x.com/Mayhem4Markets/status/1876320125026222085

[winston]

Contrarian bet emerges for Fed’s next move

It’s at best, a long shot, but one that’s emerged among a group of die-hard bond traders – that the Federal Reserve’s (Fed) next move on interest rates will be up, not down.

Based on options linked to the Secured Overnight Financing Rate (SOFR) , traders currently see about a 25% chance that the Fed’s next move will be to lift rates by year end.

Phil Suttle, a former New York Fed economist who now runs his namesake advisory shop, sees the Fed hiking rates in September.

Source: Bloomberg

https://www.thestar.com.my/business/bus ... -next-move

[behappyalways]

Bank of Canada Cuts Rates As Expected, Ends QT, Restarts QE, And Drops Guidance On Looming Trade War
https://www.zerohedge.com/markets/bank- ... -trade-war