Yen Carry Lifts Risk Around The Globe In Quiet Overnight Trade

In a carry-trade driven world in which news and fundamentals no longer matter, the only relevant “variable” is whether the JPY is down (check) and the EUR is up (check) which always results in green equities around the globe and green futures in the US… [...]

On the Impotence of Karlsruhe

This post was first published on Bawerk.net. You may also follow us on @EBawerk If there is one single event that could derail the euro experiment it is the German Federal Constitutional Court ruling on the European Stability Mechanism (ESM) and Outri… [...]

A Complete Guide to European Bail-Out Facilities – Part 2: Target2 and EFSF / ESM

This post was originally published at Bawerk.net. You may also follow us on twitter @EBawerk     2.    Tran-European Automated Real-time Gross Settlement Express Transfer System – TARGET2 In order to facilitate cross-border f… [...]

Things In Portugal Are Getting Worse

Despite media rumors that the Portuguese foreign minister Portas, who resigned on Tuesday precipitating a complete collapse in Portugual bond prices and ushering in the latest European political crisis, has agreed to stay in the government as a Deputy … [...]

More Fed Jawboning On Deck To Usher Green Close To First Half Of 2013

Overnight newsflow (which nowadays has zero impact on markets which only care what Ben Bernanke had for dinner) started in Japan where factory orders were reported to have risen the most since December 2011, retail sales climbed, the unemployment rate … [...]

Treasury Closes Issuance Week With Strong 7 Year Auction; Direct Takedown Second Highest Ever

Tuesday’s weak 2 Year bond auction is now a distant memory, and following yesterday’s strong 5 Year it was not surprising to see a very strong pick up in demand for the just concluded 7 Year auction. On the surface, the auction was very strong with the… [...]

The Debt Ceiling Is Back

While many may not recall that the US has been without an official debt ceiling for the past three months, or even that it has a debt target ceiling, the bonus period agreed upon in January to let the nation rake up some $400 billion in addition debt i… [...]

Overnight Levitation Returns As The Elephant In The Room Is Ignored

With every modestly positive datapoint being desperately clung to, now that even Goldman’s Hatzius has once more thrown in the economic towel after proclaiming an economic renaissance in late 2012 just like he did in late 2010 only to issue a mea culpa… [...]

Not Even Fed’s Premonetization Can Help Today’s Weak 30 Year Auction

Not even the Fed pre-monetizing yesterday of today’s 30 Year reopening auction could do much to improve demand for today’s $13 billion sale in long-dated paper. Because if yesterday’s 10 Year auction was a testament to demand from Direct and Indirect b… [...]

So You Want To Short The Student Loan Bubble? Now You Can

Even as the gargantuan $1+ trillion student debt load has been the bubbly elephant in the room that few are still willing to talk about (as the ease of obtaining very fungible loans, with ultra-low interest rates, have become the primary source of life… [...]