Quote:
‘We are each of us angels with only one wing, and we can only fly by embracing one another.’ Luciano de Crescenzo (1928-)
The News:
US Treasury proposes all OTC derivatives trades to be subject to more regulation including centralised clearing, but do not say which agency will be responsible.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
04:45 JP auction result of 40-year JGB sale: yield 2.22%, bid-to-cover ratio 3.87.
07:00 EZ16 April New Car Registrations –11.9% versus –9.1% March.
08:15 CH April PPI M/M, Y/Y, versus –0.5% and –2.8% March.
09:00 EZ16 ECB Monthly Report.
09:00 DE Bundesbank officials testify on state bail out of Hypo Real Estate, Berlin.
10:30 GB auction result of £700M 0.75% 2047 Index-Linked Gilt.
13:30 US April PPI (-0.3% to +0.5% M/M, -4.3% to –3.1% Y/Y, versus –1.2% and –3.5% March).
13:30 US April Core PPI (-0.2% to +0.2% M/M, +3.3% to +3.6% Y/Y, versus 0% and +3.8% March).
13:30 US Weekly Jobless Claims (580K to 650K, Continuing Claims 6365K to 6510K, vs 601K and 6351K prior week).
00:50 JP March Machine Orders (Mizuho Securities –1.0% M/M, -24.7% Y/Y, versus +1.4% and –30.1% February).
00:50 JP April Domestic CGPI (Mizuho Securities +0.1% M/M, -3.1% Y/Y, versus –0.2% and –2.2% March).
The Psychology:
Sixty percent of US homeowners think house prices have bottomed, 18% think their home has increased in value over the last 12 months and 22% think the value of their property has not changed.
The Risk:
Stock markets slip again.
Today’s most interesting chart: Front month Eurodollar interest rate future
Highest ever price implying three-month Libor at 0.75%.
