Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
For the first time ever, Greek 10-year bond yields dipped below 2%.
US Bond Yields vs Europe
- US: 2.05%
- Greece: 2.01%
- Italy: 1.50%
- UK: 0.68%
- Portugal: 0.43%
- Spain: 0.36%
- France: -0.11%
- Germany: -0.37%
- Switzerland: -0.67%
Figures from Trading Economics.
Shock and Awe?
Global Currency Wars On
In case you missed the general idea, global currency wars (not so cleverly disguised as interest rate policy) are hugely underway.
And please note that the ECB is following Japan's model and it did not do Japan any good.
Is the US Supposed to Follow?
For discussion of the resultant bubbles, please see Fed's Asymmetric Bubble-Blowing Policy in Pictures.
Also note Shock and Awe Needed to Un-Invert the Yield Curve: Half-Point Cut Not Enough.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
Latest Forex Analysis
Editors’ Picks
EUR/USD: Ends five-day losing streak, but bias remains bearish
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GBP/USD: Teasing inverse head-and-shoulders breakout
GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time. An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.
USD/JPY: 106.50 tested amid higher S&P futures, Treasury yields
Following a temporary reversal seen on Tuesday, the USD/JPY pair resume the bullish momentum in Wednesday's Asian trading and tests the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures.
FOMC Minutes July 30-31 Meeting Preview: The Fed vs the markets
The Fed policy that switched to neutral in Jan completed the circle last month with first decrease in the base rate in more than a decade from a 2.50% upper target to 2.25%. Markets expect a second cut at the September 18th FOMC.
Gold: Bulls cheer pullback from 10-day EMA
Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.