U.S. CPI HELD STEADY, in line with expectations. Core CPI MoM came in above estimates. Wall Street will open nicely higher
• Headline CPI YoY: 3.4% vs. 3.4% expected and prior • Core CPI YoY: 2.4% vs. 2.4% expected and 2.5% prior Core inflation cooled from last month, but matched forecasts. Traders now see about 90% chance of a Fed RATE HIKE on September. CPI YoY: 3.4% vs 3.4% est CPI Core YoY: 2.4% vs 2.4% est CPI MoM: 0.4% vs 0.4% est CPI Core MoM: 0.3% vs 0.2% est Source: Coinbureau
Japan's currency defense just triggered the largest monthly drop in its FX reserves EVER:
Japan's foreign currency reserves plunged -$94.6 billion, or -8.7%, in August, the largest monthly drop in history, to $995 billion, driven by the Ministry of Finance's intervention to support the Yen. Over the 4 months from May through August, spanning multiple rounds of intervention, reserves have fallen a combined -$174 billion, or -14.9%. Most of this decline came from securities holdings, mostly US Treasuries, which dropped -$87.8 billion in August alone, to $840 billion, while foreign currency deposits fell a smaller -$6.9 billion, to $155 billion. No wonder the US is getting more involved in Japan's currency policy. Source: Global Markets Investor
Market Expectations for Fed Funds Rate
The market is now pricing in a 60% chance of a Fed hike at the September 16 meeting, with the odds going up to 71% by the October meeting and 86% by year-end. Source: Charlie Bilello
Japan dumped $88 Billion of foreign securities last month, their largest such sale in history
Source: Bloomberg, Barchart
Yesterday, US Treasury bought back $12,500,000,000 of its own debt.
This is the largest buyback in over 3 months. Source: Bull Theory
The French 10-year bond yield reached 4.27% yesterday (Thursday)
If this continues, the ECB will print many new colorful euros. The first euro crisis triggered by Greece was about hundreds of billions. France is about trillions (3.53 trillions euros to be precise). Source: Michel A.Arouet
$1.80 TRILLION has been added to Gold and Silver Marketcap in the last 30 hours as Fed rate hike expectations drop to 50.4%.
Source: Bull Theory
When was the last time any Fed chairman raised rates with $8T in USTs (over 25% of US GDP) maturing in <1 year?
Source: Luke Gromen
