Bobbys Corner-Open Market-March.27.2012

Good Morning:

Lots of activity in the overnight session-but not a lot of price movement.
The USD took a slight hit after comments from Fed Chairman Bernanke that he plans on keeping the monetary policy “highly accommodative” for the foreseeable future.

In the Euro Zone-the Portuguese/German government bond yield spreads have narrowed to under 1000 bps-this is the first time since September that the spread has been below 1000.

Crude oil is again trading around the $107/bbl level.  Today the API (American Petroleum Institute), will announce their weekly inventory report, and it is expected to show inventory at 2.75 million barrels-which may damper the run up by the oil bulls.
With crude hitting record highs against the GBP and Euro-there is concern that this could cause a Europe wide recession.

Gold and Silver are higher at this time.  Oil is steady-just below $107/bbl

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

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-March.16.2012

Good Morning:

A very lackluster evening session as the markets await this morning’s CPI data.  With the US economy picking up speed, and inflation following the trend-the Fed may not be able to continue with their very accommodate monetary policy.  The magic number for CPI seems to be 3%.  If investors and the Fed see this data go over 3% year to date-they will need to re access their policies.

Asian equity markets were mixed-while European markets are higher, along with US Futures.

Gold, Silver and most metals are lower.
Oil is higher-still trading under $106/bbl.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-March.1.2012

Good Morning:

Yesterday’s comments from Fed Chairman Bernanke took the steam out of any additional Fed stimulus in the short end.  The marketplace still seems to feel that the Fed will eventually do a 3rd round of their QE program-but no indication was given of when any additional QE would take place.  As the jobs markets tries to do a little better-the  Fed will monitor the situation, and act accordingly.

In other news-The Bank of England’s Miles sees  the UK QE program as very worthwhile.  The QE helped keep Gilt yields lower, along with the UK’s safe haven status, kept the nation’s economy from teetering.

Asian equity markets were lower, while European equity markets are higher-along with US Futures.

Oil is higher-over $107/bbl.  Gold is also inching up.

HAVE A GREAT DAY & GOOD LUCK

Feds Williams Speaks in New York

Feds Williams Speaks

• Housing ‘major factor in ‘sluggish’ recovery
• Fed policy addressing aggregate-demand shortfall
• Housing isnt only reason for demand shortfall

Fed’s Fisher on CNBC

Fed’s Fisher on CNBC

Says:

• ‘Tone is a lot better’ among businesses
• Jan 25 FOMC statement was ‘talking down the economy’
• Fed should be ‘cautious’ and ‘do the right thing’
• ‘Things are getting better, not worse’
• He sees no need for quantitative easing
• ‘Our job is not to prob up the street’
• Any expectation for new QE is ‘wishful thinking’
• U.S. ‘still has too many people out of work’
• Will be ‘pleased’ when FOMC develops an exit strategy
• FOMC likely to keep rates low until improvement

Feds Plosser on the Wires

Says:

• ‘Uncertainty’ on impact of expanding fed assets
• Public may expect more from Fed than it can deliver
• U.S. has ‘very serious economic imbalances’
• Monetary policy shouldn’t be used as ‘A crutch’
• Fed is doing ‘everything we can’
• ‘Pressure is enormous’ on fed to think short term
• Fed begins treasuries under maturity extension program

anBernanke Sees Signs Economy is Improving and Fiscal Policy Risks

• Large and increasing level of government debt runs risk of serious economic consequences
• Long way before labor market can be said to be operating normally
• Fed will continue to monitor situation in Europe closely, and take every available step to protect US financial system and economy
• There are concerns that have been weighing on US business investment
• Inflation has declined and Fed expects it to remain subdued
• Signs economy has declined and Fed expects it to remain subdued

Fed Chairman Ben Bernanke Press Conference

http://www.federalreserve.gov/newsevents/press/monetary/formcprojtabl20120125.pdf

• Fed is not changing the way it conducts monetary policy
• Fed aims to support a stronger recovery, and reiterates the highly accomodative stance
• Reiterates late 2014 interest rate language
• Clarity of policy direction is objective
• Higher Inflation would reduce ability on decisions
• maximum employment on equal footing with stale prices
• not feasible for any central bank to fix long run goal for employment
• Maximum employment level is not ‘immutable’
• Economy is expanding moderately with some slowing in global growth
• Jobless rate is elevated
• Further improvements in labor market
• Private sector effort must be significant
• Oil and commodities prices have flattened, turned to the downside
• CPI has been subdued, inflation should be at, or below, FOMC mandate
• Policy assessments should not be viewed as unconditional pledges

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