The rate hikes marathon
Since the start of 2022: The Federal Reserve has raised its benchmark rate 10 times to 5.25% from 0.25%. The Bank of England has hiked its key rate 11 times to 4.5% from 0.25%. The European Central Bank increased its seven times to 3.75% from 0%. Source: Ignacio Ramirez Moreno
Treasury longs extend
The latest JP Morgan client survey shows the most outright long positions since 2019. Source: Bloomberg
NYSE Airlines Index rallied to hit another new 52-week high yesterday
Source : J-C Parets
Fed left interest rates unchanged but suggest further hikes
Federal Reserve officials paused their series of interest-rate hikes but projected borrowing costs will go higher than previously expected.
Powell, speaking to reporters in a press conference Wednesday, faced the challenging task of explaining two possibly contradictory policies: deciding to leave rates unchanged following 10 straight hikes while also indicating that at least two more increases might be necessary this year, possibly as soon as July.
Source: Bloomberg
SEC and Binance.US to negotiate deal avoiding total asset freeze
Binance.US and the United States Securities and Exchange Commission have agreed to work on an arrangement that will allow the exchange to avoid freezing all of its assets.On June 14, Bloomberg reported that U.S. District Judge Amy Berman Jackson referred the two organizations to a magistrate judge to work toward a compromise arrangement to protect customer funds without having to shut down the exchange. “Shutting it down completely would create significant consequences not only for the company but for the digital asset markets in general,” Jackson said at a June 13 hearing. Source Cointelegrah
Riskier bank bonds back as returns rise, AT1 Market reopens
Two European banks on Tuesday sold the first
publicly-syndicated AT1 bonds on the continent since the Credit Suisse’s crisis.
Easing concerns about the health of the banking sector and hopes that major central banks are nearing the end of their tightening cycles contribute to the move. Source: Bloomberg
Federal Reserve to skip a rate hike
A gauge of dollar strength held near a one-month low on speculation the Federal Reserve will skip an interest-rate hike at a policy meeting ending Wednesday.
While US CPI data has cemented bets on a Fed pause, it also suggests that we might see more tightening later, which will ultimately slow the US economy.
Source: Bloomberg
ECB Balance Sheet is almost unchanged ahead of this week's meeting.
Total assets now at €7,714.4bn, equal to 57% of Eurozone GDP vs Fed's 32%, SNB's 121%, BoJ's 130%. Source: HolgerZ, Bloomberg
