Bobbys Corner-Open Market-January.27.2012

Good Morning:

With a looming 14 billion euro payment due in March-the Greek government is in continuous talks with their private creditors to restructure their debt.  This has been the centerpiece of the currency markets for the past week.  Creditors are insisting on ECB participation in the Greek debt mess.
In other news from the Euro Zone:
Portuguese bond yields reached new highs-as market participants are in  the mindset that Portugal may need a second bailout to work out their debt mess.
Spain’s unemployment rate rose to over 22%-as the loss of construction jobs continues to hamper any employment recovery.

US  Q4 GDP rises 2.8%.     

Asian equity markets were higher-Europe is lower-as are US Futures.

Oil is higher-still below $100/bar.  Gold is lower.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

I will be out of the office next week-as I am having knee surgery.  I will hobble back on Feb 6.

Bobbys Corner-Open Market-January.26.2012

Good Morning:

With the ongoing sage between the Greek government and private investors continuing-there have been reports of the private sector accepting a interest rate of less than 4%.  This is a major barrier that will now allow Grrece to seriously revamp their debt.  Greece has a 14 billion euro payment due in March-and without the help of the IMF or ECB-they will not be able to meet this deadline.
This news pushed the EUR/USD pair into the mid 1.31 handle (1.3173).
Italy sold 4.5 billion euro worth of 3 year notes-with the lowest yield since last August.  The yield was 3.763% versus 4.853 on the last 3 year note auction.

Yesterday’s press conference by Fed Chairman Bernanke brought the possibility of a third round of QE to the markets if unemoloyment remains high-so I guess we will see more QE by the 3rd quarter of this year.
He also talked about keeping interest rates low through 2014.

Gold, Silver and Oil are all higher-as are equities and futures.

HAVE A GREAT DAY & GOOD LUCK

ECB Headlines Jens Weidmann, President of the German Bundesbank

• Strict and clear formulation or rules decisive, and German economic growth temporarily paused
• Eurosystem’s price stability mandate must be untouched
• Germany economy growing 0.6% in 2012, and condition on financial markets has eased somewhat
• IMF growth for Germany for 2012, 2013 too pessimistic, and expects sideways movement in German economy in Winter
• Solving crisis via printing press is not in-line with the ECB’s mandate

ECB Headlines

All comments made by Chief Economist of the European Central Bank, Peter Praet:

• 3-year LTRO has reduced risks of fire sale of assets by Euro-zone banks
• Recapitalization of ECB, Euro-zone national central banks not on agenda
• No options for countries to leave the Euro-zone
• Signs currently pointing to Euro-zone economic stabilization
• Credit conditions to remain tight in winter half-year
• No long phase of weak economic growth in Euro-zone

Bobbys Corner-Open Market-January.12.2012

Good Morning:

Spanish and Italian bond auctions fared very well-with yields on the Italian bonds falling up to 40bps in the wake of strong demand.
The euro rose to the 1.2750 level-which is where we are sitting on presently.

As expected the ECB left interest rates unchanged at 1%. 
The BOE also kept interest rates unchaged at .5%-and left the asset purchase program in place.
Fitch Rating’s Riley stated that Italy faces a “material risk” of a downgrade by the end of the month.

US Treasury Sec’t Geithner is in Asia looking for support on oil sanctions against Iran. He should be in the US working on how to rebuild the US economy-not traveling the world.
China has rejected limiting oil imported from Iran-but Japan will be joining the sanctions.  Japan has been in talks with Saudi Arabia to replace any oil that they will not get from Iran.

Gold-Silver & Oil are all higher.

Asian equity markets  were lower-while Europe is higher.  US Futures are also higher.  

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.11.2012

Good Morning:

A fairly lackluster overnight session greets us this morning.
German GDP came in at 3%-which was widely expected.  Analysts are not overly optimistic on growth in 2012-and expect German GDP to grow under 1% for the year.  With continued turmoil in the Euro Zone and the sovereign credit crisis that is not going away-the prospect for growth is weak.  The German economy has been resilient in the past-time will tell.
Continued investor confidence in the German economy allowed the sale of 5 year bunds (bonds) below 1% for the first time.
Italian bonds fared well during the morning session-with 10 year yields below 7%.
Comments by Fitch Ratings that the Euro regions debt crisis will worsen unless the ECB boots bond purchases sent the Euro lower.

Asian equity markets were higher-while European equity markets are lower-as are US Futures.

Oil is lower (still over &101/bar)-Gold and Silver are both higher.

HAVE A GREAT DAY & GOOD LUCK

ECBs Merkel on the Wires

Says:

• ‘very close agreement’ between France, Germany
• Talks about making EFSF ‘more efficient’
• ECB can help bolster on EFSF
• EU fiscal pact may be completed as soon as January 30
• May be able to sign pact in Jan or Mar the latest
• Merkel and Sarkozy want Greece to stay in Euro
• EU ready to back Greek tranche if conditions met

Bobbys Corner-Open Market-January.4.2012

Good Morning:

A report showing that inflation slowed in Europe has prompted investors to push the ECB to reduce interest rates-as a means to get the stalled European economy back on track.
The single currency dropped to the lowest level in 11 years against the JPY.  Germany sold 10 year bonds 4.06 billion worth at an average yield of 1.93%.

Asian equity markets were higher-but European equity markets dropped as the marketplace realizes that the banks will need additional capital to boost their balance sheets in the wake of the debt crisis that is strangling Europe.

It seems that the ECB is out in the market buying Italian and Spanish bonds-no surprises there.

Oil trading over $102/bar, gold and silver are slightly lower at this time.

HAVE A GREAT DAY & GOOD LUCK

Next Page »