* Perhaps the SNB is finally getting it. This week they've allowed the 1 week repo rate to drift higher by 8bps, which makes an interesting contrast to the last time they raised rates. For the first time in recent memory, the daily SNB repo is being watched by the market with interest. While the modestly stronger CHF has not done the FX carry basket any favours, Macro Man is nevertehless pleased to see that the SNB has decided to put their money where their mouths are.
* Further evidence of renewed CB interest in bonds comes fom the weekly Fed custody holding data. After falling over the prior two weeks (a time in which bonds sold off pretty hard), Fed custody holdings of Treasuries and Agencies rose by a healthy $11.7 billion in the last week. Looks like stories about China coming back to market may have been accurate- though wouldn't alternative purchases of T Bills also have been held in custody by the Fed?
* Is Europe about to recouple? Today's ifo survey produced a result which was, while still strong on an absolute basis, fell short of both the prior release and market expectations. At the same time, the 6m/6m change in the OECD leading indicator has clearly turned over; indeed, it is about to cross over below the equivalent US indicator for the first time since December 2005.