USA Bond & Yield
U.S. government bonds are seen as a safe-haven investment for investors, with Treasury yields seen as an indicator of investor sentiment regarding the economy Low yields Recent U.S. bond yields (30.08.2021 5PM EDT): The United States 10Y Government Bond has a 1.289% yield. 10 Years vs 2 Years bond spread is 108.4 bp. Normal Convexity in Long-Term vs Short-Term Maturities. Central […]
July Retail Sales number crunching – US and China
What are Retail sales? Retail sales track consumer demand for finished goods over a defined period of time. It is calculated by measuring the purchases of durable and non-durable goods over that period. It is a leading macroeconomic indicator of the overall economic state and its projected path toward expansion or contraction. Retail sales figures […]
High frequency data
High frequency data refers to time-series data collected at a fine scale. They are largely used in financial analysis and in high frequency trading, high frequency data provides intraday observations that can be used to understand market behaviours, dynamics, and micro-structures. Statistically, the higher the number of independently measured observations, the higher is the degrees […]
A Divided FOMC – PCE to Decide whom has the Upper-Hand
In the previous article, we (CAFX) had run a detailed analysis of why the Fed has now forced itself into a corner, facing in between of a rock and a hard place. On the one hand, the Fed continues to purchase $120 billion USD worth of Treasury Bonds and ABSs monthly plus near zero interest […]
Federal Reserve – Monetary Policy and Latest Market Expectation
FED & FOMC Introduction FOMC The Federal Open Market Committee (FOMC) is a branch of the Federal Reserve System (the Feds). The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirement, while FOMC is responsible for the open market operation. OMO is the purchase and sale of […]
RBA – Monetary Policy and Latest Market Expectation
RBA The Board of Reserve Bank of Australia (RBA) met on Tuesday 6th July 2021 to decide the monetary policy. The policymakers decided to provide ongoing support for the Australian economy. The goal is to achieve a low unemployment rate and keep the inflation rate consistent with the target range of 2 to 3 percent. […]
