Anthony B. Sanders

Dazed and Confused: Fed Unlikely to Raise Rates Before April (Even Though Taylor Rule Suggests Hiking Fed Funds Rate to 2.32%)

According to The Federal Reserve Open Market Committee (FOMC) minutes, The Fed is unlikely to raise rates before April. This is somewhat puzzling since The Taylor Rules suggest hiking The Fed Funds Target rate to 2.32%. Continued Fed Funds target rate of 0.25% coupled with declining long-term Treasury yields have produced continued low mortgage rates. […]

Fed Futility! Mortgage Applications Remain Depressed Despite Fed’s Massive Intervention In Financial Markets

Talk about Fed Futility! Mortgage applications continue to remain depressed despite the massive, unprecedented intrusion in financial markets by the US Federal Reserve. Mortgage applications increased 11.1 percent from the previous week, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 2, 2015. The most recent […]

Total Margin Debt vs GDP Highest in 85 Years! (Corrections After Previous Episodes Where TMD to GDP Exceeded 2%)

Arthur Cutten at Jesse’s Cafe Americain has a nice graphic showing that total margin debt versus GDP is the highest in 85 years! See Crosscurrents for charts. Even worse, the last two times margin debt versus GDP was above 2%, we have stock market corrections! The Federal Reserve’s monetary voodoo has certainly helped increase margin […]

Opa! Euro Spot Rate Declines To Lowest Level Since Early 2006 As Greece Considers Abandoning The Euro

Although US markets are closed on Sunday, Europe is open for business! And a decline in the Euro spot rate. (Bloomberg) — Greece’s political parties embarked on a flash campaign for elections in less than three weeks that Prime Minister Antonis Samaras said will determine the fate of the country’s membership in the euro currency […]

German 2Y Yield Crashes To -10 Basis Points (9 European Countries Have Negative 2Y Sovereign Yields Including France)

Germany is now experiencing negative bank deposit rates to go along with a negative 2 year sovereign debt yield. Switzerland experienced the biggest crash in the 2Y sovereign bond yield, down 13.5 basis points to -0.371! All told, there are 9 European countries with negative 2 year sovereign yields. One would hope that European GDP…

Double Whammy! Japan’s 2Y Yield Goes Negative As Housing Starts Decline By -14.3% In November

Japan had a double whammy of economic news today. First, the Japanese sovereign bond yield for 2 year bonds went NEGATIVE! (Bloomberg) — Japanese 10-year bond yields fell to a record low, following yields on other maturities down to unprecedented levels, as the Bank of Japan scoops up debt. Ten-year yields slid 1 1/2 basis […]