Investors in Puerto Rico municipal debt just scored a windfall gain as Puerto Rican muni prices soared on more funds being available to pay creditors.
To quote Dwight Schrute from The Office, “They say the best vampires don’t bleed their victims dry, but give them the strength so that they can bounce back only to be fed on again.
NIMBY (Not In My Back Yard) zoning and land use controls combined with slow wage growth since 2007 and The Federal Reserve asset bubble-blowing have combined to make 68 percent of US housing markets are simply unaffordable.
To infinity … and beyond! For the 3-month Libor, that is.
The US Treasury yield curve keeps on flattening.
While the Treasury curve continues flattening since December 2013 as well.
And the 3m Libor-OIS spread keeps on rising.
Keep on flattening!
Initial jobless claims for the week of March 24 fell to 215k, the lowest level since January 1973 and President Richard Nixon. Core Personal Consumption Expenditures Prices YoY rose to 1.60%, still short of The Fed’s target of 2%. This one measure of “inflation.” Another measure of core inflation is the Core PCE Deflator YoY. … Continue reading Initial Jobless Claims Lowest Since Jan 1973 (Nixon 2nd Inauguration) As Core Inflation Increases (Slightly) →
The Libor-OIS spread has spiked in recent months. The spike in the Libor-OIS spread is causing another problem: the hedged US Treasury 10-year yield is close to 0%.
The Treasury 10Y-2Y curve slope has officially flattened to below 50 basis points, back to 2007 levels.
Tech companies like Facebook and Twitter are getting hammered for selling user data. Telsa analysts have cast doubt on the electric-car maker reaching its production targets for the all-important Model 3 sedan. All in all, it is hauntingly familiar to the Tech Bubble and Burst from 2001.
Indicators of U.S. stock and bond volatility have swung to near-complete independence from the closest ties ever in a matter of months.