Uh-oh

Per yesterday's post, June eurodollars contineu to get whacked...
..and more worryingly, 10 year Treasuries are breaking the uptrend support line of the entire bull move.

3 month $ LIBOR set "only" 8 bps or higher, but the carnage continues in fixed income markets. There appears to be a modest, belated reaction from equities, though it is pretty small when the context of another crappy report from Merrill is considered.

Meanwhile, markets were treated to the following repartee:

EUROGROUP'S JUNCKER SAYS MARKETS DID NOT CORRECTLY UNDERSTAND G7 MESSAGE ON FX EUR/USD dumps on this.

Five minutes later, we get

WEBER - INFLATION OF 3.6 PCT IS WORRYING

and then

ECB'S BINI SMAGHI SAYS EASY FOR SOME NATIONS TO CRITICISE ECB BUT DISTRACTS FROM REAL PROBLEMS - TV

Uh, chaps.....I though you wanted to avoid sharp fluctuations in exchange rates?
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Anonymous
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April 17, 2008 at 3:04 PM ×

Ok ok guys, I have to revise my view, Euribor mkt has big problems..
i've just received a call from a BIG UK bank that's asking to me liquidity in open repo to finance their securities..

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Macro Man
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April 17, 2008 at 3:08 PM ×

US LIBOR already indicating 5 wider tomorrow......

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