Cartoon of the Day by Hedgeye
$34.6 TRILLION and counting... Are we past the point of no return?
Central banks cut rates at the fastest pace since heading into the pandemic.
Source: BofA, The Daily Shot
In May 2020, there were 21 countries with negative interest rates. Today there are none.
Sanity has returned to the global bond market... Source: Charlie Bilello
THE WEEK AHEAD... All eyes on inflation data + Powell speech on Friday
>>> In the US: 1. New Home Sales data - Monday 2. CB Consumer Confidence - Tuesday 3. US Q4 2023 GDP data - Thursday 4. February PCE Inflation data - Friday 5. hashtag#Fed Chair Powell Speaks - Friday 6. Total of 5 Fed Speaker Events >>> Inflation will also be the key theme in europe as flash CPI reports start to come in. >>> In Japan, the focus will be on the summary of opinions from this week's BoJ meeting as well as the Tokyo CPI, labour market data and industrial production. Picture via openart.ai/midjourney
Are us financial conditions becoming too easy to tame inflation ?
Source: Bloomberg, Steno Research, Macrobond
Debt
Source: Hedgeye
In case you missed it:
After bank of japan abolished negative interest rates this week for 1st time since 2016, the volume of bonds with negative interest rates has shrunk to $300mln. At its peak, there was a volume of $18tn worth of bonds with negative rates. But this weird experiment seems to be over – for now. Source: HolgerZ, Bloomberg
Turkey raises benchmark rate unexpectedly by 500bps to 50%.
But main rate still way below inflation of 67.1%. Source: Bloomberg, HolgerZ
