BREAKING: China's central bank injects RECORD monthly amount into money markets
Source: Bloomberg
The European Central Bank held interest rates steady for the second meeting in a row, as it revised its growth forecasts lower and announced plans to shrink its balance sheet
ECB's Lagarde: We did not discuss rate cuts at all BUT markets price in 5.3 cuts for 2024. “The Governing Council’s future decisions will ensure that its policy rates will be set at sufficiently restrictive levels for as long as necessary,” it said in a statement. Source: Bloomberg, CNBC
The Fed is still behind the curve...
The market is now pricing in a Fed Funds Rate of 3.8% by the end of 2024, expecting significantly more easing than the Fed's projection of a move down to 4.6%. Source: Charloe Bilello
Big move down in Treasury yields yesterday after the FED projected 75 bps of rate cuts in 2024...
1-Year: 4.94%, down 55 bps from Oct high. 2-Year: 4.46%, down 73 bps from Oct high. 10-Year: 4.04%, down 94 bps from Oct high. Source: Charlie Biello
The Fed is finally giving up...
Fed holds rates steady but indicates three cuts coming in 2024. Indeed, the Dot Plot is adjusted down significantly more dovishly than expected, narrowing the gap to the market's expectation significantly... The US 10 year is down 20bp to 4%, the Dow surges by 300 points!
⚠️BREAKING:
*FED'S POWELL: IT IS NOT LIKELY WE WILL HIKE FURTHER *POWELL: POLICYMAKERS ARE THINKING AND TALKING ABOUT WHEN IT WILL BE APPROPRIATE TO CUT RATES Source: www.investing.com
The Fed just triggered the biggest stock-buying program since Nov 2022...
Source: Bloomberg, www.zerohedge.com
Monetary policy is now easing globally - and will ease much more in 2024/25 - at a time when fiscal deficits are far above the global financial crisis levels
Source: BofA
