William Sullivan
William Sullivan
bonds borrowing collective confront easing economy fed financial hostile improve improves markets monetary policy pressures today wisdom
Today the collective wisdom is that the economy will improve in the not-too-distant future, and that's hostile for bonds because it suggests that the Fed is done easing monetary policy and that financial markets may confront some interest-rate pressures as the economy improves and borrowing re-accelerates.
funds grips
We are also in the grips of liquidations by hedge funds and a lot of dealers don't want to see big exposures,
diminished economy evidence knew pressures price statistics
We knew the economy slowed down, and there was evidence from some of the monthly price statistics that inflationary pressures diminished during the period.
fed quick rate reaction seeing terms
To have this quick of a reaction in terms of rate cuts, ... suggests that the Fed was seeing crunch-like conditions.
associated average early eliminated february gains industrial jones supply support three
We're down for three reasons. One, we still have the overhang of supply associated with the February refunding auctions, which were not distributed that well, ... Two, the early gains in the Dow Jones industrial average have eliminated some support for Treasury.
glow inflation month negative
We're basking in the glow of negative inflation in the month of November.
flying responding solo treasury
We're flying solo in the Treasury market, we're responding to the fundamentals.
activity gets moderation pace quarter seeing third
We're seeing some moderation in the pace of manufacturing activity as the third quarter gets under way.
bring fresh news
This was old news and didn't bring any fresh insights.
equity retreat total yields
The only thing that can take yields down is a total retreat in equity prices.
calls level margin people
There are a lot of people who are tremendously overextended and we're now getting down to a level to where these margin calls are massive, ... The calls are going out right now.
data debate fed generate hikes
The data will generate a debate at the Fed about how many more rate hikes there will be.