Marc Ostwald
Marc Ostwald
basis might raise rates
He might as well have just said 'we are going to raise rates by 25 basis points,
additional area initial represents resistance seen target
On the upside, the $1.1760-70 area represents the initial target and additional resistance is seen in the $1.1800 area.
boost clearly data expected higher influence january likely rate surprises
Any surprises in the January CPI data from Bavaria and Brandenburg will clearly influence short-term rate expectations, with anything higher than expected likely to boost the euro.
flight happening market quality rather reflect result seemed stock value
The result seemed to reflect a flight to quality in the light of what is happening in the stock market rather than a value judgement.
deal
This was the deal that had been expected,
bonds certainly close debt hold italian prospect public reform spread until
The prospect now for any reform of Italy's public debt must be close to zero. I wouldn't want to hold Italian bonds until they get to a spread that acknowledges those risks, and they certainly don't at the moment.
buyers call cycle doubt fed people quickly rate yields
We'll get more buyers with yields around these levels. People won't want to call the end to the Fed rate cycle too quickly though, so I doubt we'll get a big rally.