Chillin' out till it needs to be funded
As we mentioned in the previous note, Ben Bernanke policy speank and testimony before the HBC expounding on why the Fed decided to keep rates low till end 2014 was almost forgotten after the jobs report was announced. The BLS data caused Fed futures to decline, showing up to a higher short term Fed rate in the 2013 and 2014 trades, that means we won’t wait till end 2014 for the first rate hikes. Of course, that is justa ste up reaction to the astounding numbers in the employment situation report at 245,000 additions in jobs this January
These futures were already at their highest before the FOMC meeting for end 2014, allowing Bernanke’s policy speak no surprise but have now forgotten it in the aftermath of the new data. The Services PMI reports come next in under an hour as ISM reports non manufacturing data.
Bank of America remains in the Top of the Pops early morning as they increased their tender offer to $3.5 bln for subordinated notes in certain currencies and Allstate suit for $700 mln in Countrywide Securities was dismissed in the early day, giving it a better hand in mortgage settlements after the Allstate argument calling it a bank strategy to strip Countrywide of all valuable assets and leave a raided shell behind was dismissed.
For Renren and Groupon, follow the Facebook pop.
The Fed Balance sheet report yesterday ahowed another $1.3 bln in Central bank liq. swaps from Europe out of a total $5 bln inc in the balance sheet. nothing much yet. Money supply report at $4.5 bln was ok, not too much cash going around yet but still enough liquidity. Meanwhile Greek PM PApademos could be on his way out if he can’t get the troika agreement and the private investors in today. The GReek councils do not want to give in to EU demands to reduce the private sector minimum wage from EUR 751 per month
And another $72 bln in auctions the coming week, $40 bln in 10 yr and 30 yr bonds announced for Tuesday to Thursday