Tuesday, April 06, 2010
In honor of Gordon Hayward's nearly-the-greatest-shot-of-all-time, here are three points:
1) There have been rumblings of a Fed discount rate after yesterday's hastily announced Board of Governors meeting. Whether they do hike it or not, we are now at a relative extreme in Fed pricing; the OIS market is now pricing in rates of just over 1% at the eighth FOMC meeting. Levels not too far north of here have capped market pricing over thepast year; this, combined with a 10 year note flirting with a 4% yield, suggests that fixed income might be a scoop here. Unless something has materially changed, in which case it's a sale. Gee, maybe Macro Man has a future in research....
2) El Gordo has called the election for May 6, and sterling has promptly sat like a good dog and tumbled a percent. Perhaps this has something to do with a Guardian poll claiming that Labour could win the most seats in the election. Given that the Grauniad is selling "Step Outside, Posh Boy" T-shirts on its website, however, one could credibly question the partiality of the result, which bears a striking resemblance to a wishcast. A rather more impartial polling source gives the Tories a 10 point lead.
3) Macro Man is travelling for the next week, so updates will be sporadic at best. As always, regulars should feel free to use the comments section to chew the fat on markets.