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12 Aug 2024

US banks are facing $517 Billion of Unrealized Losses - nobody wants interest rate cuts more than them

Source: Barchart, BofA

6 Aug 2024

Why the ECB should keep interest rates at the lowest level possible explained in one chart

The Euro zone is an equilibrium where high debt countries like Italy, France and Spain run big deficits. The ECB enables this by capping yields when these spike like they did in 2022. This policy is an implicit subsidy of high debt countries by low debt ones... Source: Robin Brooks

5 Aug 2024

💥 Treasuries surge as traders bet on emergency Fed rate cut 💥

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5 Aug 2024

Bonds have surged higher with the collapse in interest rates and the US Aggregate Bond ETF is now up 7.7% over the past year, outperforming the Treasury Bill ETF ($BIL +5.4%)

Source: Charlie Bilello

5 Aug 2024

What a chart...

Source. Michel.A Arouet, Ht @MacroKova, Convera, Macrobond

2 Aug 2024

Should the FED wait for a financial accident to happen BEFORE cutting interest rates?

Source chart: Mac10

2 Aug 2024

As highlighted by Otavio (Tavi) Costa, the need for the FED to cut interest rates is not driven just by labor data and inflation.

As shown on the chart below, the costs of servicing Federal debt in the US is soaring more than in any other country. Not just once, not twice, or even three times — multiple rate cuts would be needed to bring US interest payments as a percentage of GDP in line with the rest of the world. This is what financial repression is about. Source: Tavi Costa, Bloomberg

31 Jul 2024

Loose policy = Bull market

Even if the BOJ hikes a few more times, real rates will remain deeply negative, a sign of accommodate policy. Chart tracks Japan real rates & market performance ➡️ 2009 -2013: period of high real rates, languishing stock market🔻 ➡️2013-2021: BOJ floors rates, pushes rates negative and fuels stock rally ✅ ➡️ 2021-2024: inflation picks up, real rates drop even further negative, Topix rallies 50% ✅✅ Source: David Ingles, Bloomberg

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