ECB October Meeting Could Start Tapering
Updated
Quote:
"A hawkish ECB has placed German bund yields squarely in the spotlight
Once described as the “short of a lifetime” by the likes of bond gurus Jeffrey Gundlach and Bill Gross, bets on German government bond yields, or bunds, heading higher have preoccupied the minds of investors who highlight the divergence between German and U.S. bonds.
Yet, talk of investors wagering for the gap to narrow have gathered momentum recently.
What’s the catalyst?
European Central Bank President Mario Draghi has hinted that a more substantial discussion of the tapering of the ECB’s €60 billion ($71.7 billion) monthly asset purchases at its October meeting. Many investors have bet on that yield differential to narrow, with many wagering for the value of bunds to fall, pushing yields higher."
Source: marketwatch.com/story/a-hawkish-ecb-has-placed-german-bund-yields-squarely-in-the-spotlight-2017-09-15
Opinion: The multi year support of financial markets with QE's and QQE's could come to an end. Usually stockmarkets react to steps like this with short term or medium term falling prices.
"A hawkish ECB has placed German bund yields squarely in the spotlight
Once described as the “short of a lifetime” by the likes of bond gurus Jeffrey Gundlach and Bill Gross, bets on German government bond yields, or bunds, heading higher have preoccupied the minds of investors who highlight the divergence between German and U.S. bonds.
Yet, talk of investors wagering for the gap to narrow have gathered momentum recently.
What’s the catalyst?
European Central Bank President Mario Draghi has hinted that a more substantial discussion of the tapering of the ECB’s €60 billion ($71.7 billion) monthly asset purchases at its October meeting. Many investors have bet on that yield differential to narrow, with many wagering for the value of bunds to fall, pushing yields higher."
Source: marketwatch.com/story/a-hawkish-ecb-has-placed-german-bund-yields-squarely-in-the-spotlight-2017-09-15
Opinion: The multi year support of financial markets with QE's and QQE's could come to an end. Usually stockmarkets react to steps like this with short term or medium term falling prices.
Note
In shedding bonds, Fed aims for boring end to crisis-era measures investing.com/news/economy-news/in-shedding-bonds-fed-aims-for-boring-end-to-crisisera-measures-529814
Note
Borrowing bonds may get harder as Fed pares holdingsinvesting.com/news/economy-news/borrowing-bonds-may-get-harder-as-fed-pares-holdings-530172
Note
FUNDAMENTAL VIEW, EUROPEAN PMIEurozone growth seen picking up in September — Markit PMI
ft.com/content/715dc0e2-9025-3fed-8d94-ef8f66dfd48d
Note
Fed's Harker sees three rate hikes next year, after one more in 2017 investing.com/news/economic-indicators/feds-harker-sees-three-rate-hikes-next-year-after-one-more-in-2017-537294
Note
FUNDAMENTAL VIEW: US TAX REFORM Remark: US TAX cuts likel to cut tax revenues as well. US T-Bonds should face more headwinds and pressure long term.
Quote: "If Senate can pass budget resolution, tax cuts have strong chance: Zoellick
Source: marketwatch.com/story/if-senate-can-pass-budget-resolution-tax-cuts-have-good-chance-zoellick-2017-10-14?siteid=bigcharts&dist=bigcharts
Note
Germany's Greens warn against blind adherence to balanced budget investing.com/news/world-news/germanys-greens-warn-against-blind-adherence-to-balanced-budget-546660Trade active
Note
Short Term Target Reached: US TBond Yield 2,60%Stockmarktes vs. Bond Markets:
investing.com/news/stock-market-news/asian-shares-step-back-from-2007-peak-oil-at-threeyear-high-1084803
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.