Thursday, February 18, 2010
The last 24 hours have been replete with news from central banks, with minutes from the BOE/ Fed and a policy announcement from the BOJ. The first and the last were relatively uneventful; the BOJ was utterly unchanged while it seems as if Merv the Swerve's colleagues are beginning to wonder if marginal changes to the QE program are really worth the bother.
The Fed minutes seemed to provoke a bit more interest, however, given that it seems as if some FOMC voters would like to start flogging some of their veritable Everest of securities in relatively short order. This put the cat amongst the pigeons slightly, causing both Treasury and LIBOR yield curves to steepen, and opens the prospect of ongoing interest and volatility surrounding future Fed meetings, given that no decision was reached on security sales in January (but one might well be taken by mid-year.)
Given the focus in this space (and in the comments) on fixed-income recently, a commenter suggested that Macro Man open up the polls to query reader views on a variety of bond-y matters. Today, he's happy to oblige. Readers are encouraged to answer the following few questions- hopefully the formatting won't be screwy this time.
(On this one, note that the "less than 200 bps") answer has gone AWOL...if that's your view, please note in the comments.)
Posted by Macro Man at 8:49 AM