Treasury bills – Westie Lovers http://westielovers.com/ Sat, 17 Jul 2021 08:18:20 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://westielovers.com/wp-content/uploads/2021/03/cropped-icon-32x32.png Treasury bills – Westie Lovers http://westielovers.com/ 32 32 Covid-19 cases affect demand for Malaysian bonds https://westielovers.com/covid-19-cases-affect-demand-for-malaysian-bonds/ https://westielovers.com/covid-19-cases-affect-demand-for-malaysian-bonds/#respond Sat, 17 Jul 2021 00:43:16 +0000 https://westielovers.com/covid-19-cases-affect-demand-for-malaysian-bonds/ KUALA LUMPUR: Foreign investors turned net sellers of Malaysian bonds in June, resulting in a net outflow of RM 497.1 million. This effectively ended a 13-month streak of net inflows of foreign capital, with demand falling since May. Shorter-dated Bank Negara securities and Malaysian T-Bills (MTB) / Malaysian Islamic T-Bills (MITB) accounted for the bulk […]]]>


KUALA LUMPUR: Foreign investors turned net sellers of Malaysian bonds in June, resulting in a net outflow of RM 497.1 million.

This effectively ended a 13-month streak of net inflows of foreign capital, with demand falling since May. Shorter-dated Bank Negara securities and Malaysian T-Bills (MTB) / Malaysian Islamic T-Bills (MITB) accounted for the bulk of the June sale, totaling RM 1.2 billion.

The decline was mitigated by a more moderate inflow of RM 686.2 million in Malaysian Government Securities (AMS) / Government Investment Issues (GII), less than half of RM 1.7 billion recorded in May.

The persistent low foreign appetite can be in part attributed to increased risk aversion amid rising Covid-19 infections, prolonged complete lockdowns and uncertainties on the economic and political front.

Investors could also reposition their portfolios to the United States to capitalize on the growing prospects of faster-than-expected interest rate normalization.

Given the increased interest in US Treasury securities (UST), the 10-year yield spread between MGS and UST securities widened to around 186 basis points (bps) in early July, the highest since the beginning of the year.

While the still positive yield differentials in favor of MGS / GII should continue to support short-term capital flows, a strong recovery in the United States could push investors away from emerging markets which are still grappling with the economic fallout of the pandemic.



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UPDATE 1-German 10-year yield to 3-month low as bonds retain support https://westielovers.com/update-1-german-10-year-yield-to-3-month-low-as-bonds-retain-support/ https://westielovers.com/update-1-german-10-year-yield-to-3-month-low-as-bonds-retain-support/#respond Fri, 16 Jul 2021 10:13:00 +0000 https://westielovers.com/update-1-german-10-year-yield-to-3-month-low-as-bonds-retain-support/ (Add details, update prices) July 16 (Reuters) – The German 10-year yield fell to a new three-month low in calm trading on Friday as markets sought direction ahead of next week’s European Central Bank meeting. With no major Eurozone data releases on Friday, and with ECB policymakers entering their period of silence ahead of next […]]]>


(Add details, update prices)

July 16 (Reuters) – The German 10-year yield fell to a new three-month low in calm trading on Friday as markets sought direction ahead of next week’s European Central Bank meeting.

With no major Eurozone data releases on Friday, and with ECB policymakers entering their period of silence ahead of next Thursday’s meeting, analysts said government bond yields would be determined. by the news around the coronavirus.

“The spread of the more infectious Delta variant is the main emerging threat at the moment, with COVID-19 cases again on the rise globally and in most G7 economies,” said Jim Reid, strategist of the Deutsche Bank.

On Friday, the German 10-year yield, the block’s benchmark, fell one basis point to -0.347%, the lowest since April 8.

Italy’s 10-year yield fell similarly to 0.72%, with the closely watched premium it offers on German 10-year bond yields at 105bp. It struggled to stay below 100bp this week.

German and Italian government bond yields were expected to end the week lower for the third week in a row. US Federal Reserve Chairman Jerome Powell’s dovish comment this week pushed yields lower, on top of the strong rally last week, when bets against rising US Treasury yields were unwound and growth assumptions have been called into question.

Analysts expect Eurozone bond yields to remain weak in the coming weeks, given the supply outlook for the block.

UniCredit analysts expect debt management agencies to issue around € 50 billion over the next four weeks, half of the issuance of the past four weeks, which will be more than offset by repayments and upcoming coupon payments.

“With a noticeable supply slowdown and net issuance poised to turn decidedly negative over the next two weeks, the hunt for yield is likely to continue, then capture non-core curves again, as long as the ECB does not miss out. not deliver, ”said Christoph Rieger, Head of Rates and Credit Research at Commerzbank.

In data, final inflation in the euro zone in June stood at 1.9% over one year, slowing down from 2% in May and confirming a first estimate.

In the United States, retail sales figures are due at 12:30 p.m. GMT and consumer sentiment data from the University of Michigan is due at 2:00 p.m. GMT.

Later Friday, Fitch Ratings will review Greece’s credit rating, currently two notches below investment grade territory with a stable outlook.

Reporting by Yoruk Bahceli Editing by Mark Heinrich and Andrew Heavens



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Senate Republicans slam absent Democrats for evading duty, letting voter fraud and crime escalate https://westielovers.com/senate-republicans-slam-absent-democrats-for-evading-duty-letting-voter-fraud-and-crime-escalate/ https://westielovers.com/senate-republicans-slam-absent-democrats-for-evading-duty-letting-voter-fraud-and-crime-escalate/#respond Wed, 14 Jul 2021 23:30:49 +0000 https://westielovers.com/senate-republicans-slam-absent-democrats-for-evading-duty-letting-voter-fraud-and-crime-escalate/ AUSTIN – Senate Republicans on Wednesday blasted fellow Democrats – and more than 50 House Democrats who have also fled to Washington – for crippling Legislative action on pending legislation they say deters electoral fraud and violent crime. Additionally, President Dade Phelan R-Beaumont demanded Democrats return their “per diems” of $ 221 per day – […]]]>


AUSTIN – Senate Republicans on Wednesday blasted fellow Democrats – and more than 50 House Democrats who have also fled to Washington – for crippling Legislative action on pending legislation they say deters electoral fraud and violent crime.

Additionally, President Dade Phelan R-Beaumont demanded Democrats return their “per diems” of $ 221 per day – paid to lawmakers for living expenses during the session.

And an Arlington state official said he is working with House parliamentarians to try to be recognized so he can ask members in Austin to raise the bar – by removing the chairing committees for missing colleagues.

It’s unclear, however, whether ruling Republicans can take official acts that could force absent Democrats back. Yet they will try to influence public opinion – as Republicans in the Senate attempted on Wednesday.

“The work we do for the people of Texas is wasted and wasted,” said Senate GOP Caucus Chairman Larry Taylor of Friendswood. during a press conference at the Capitol.

“I find it very interesting that they talk about the democratic process when they chose to bypass the democratic process, which involves elections, and then people are elected and they come here and they serve, and they do their job,” , he said of Democrats breaking the quorum.

Taylor, flanked by his 17 fellow Republicans, spoke on the third day of the Democratic walkout. The condemnation of the Republican senators was significantly more emotional than the grievances expressed by the leaders of the House GOP Caucus at a press conference a day earlier.

While House Republicans have spoken more of sadness than anger, caucus chair Jim Murphy, appealing to Democrats’ “best angels,” Taylor, and Senate Jurisprudence Committee chair Joan Huffman of Houston, failed. do not hide it: they are upset.

“We are angry,” Huffman said. “I am and I think I can speak for many senators here. We are angry because we have come here to work.

Huffman, the author of a bill revising bail procedures, said five Texans have been killed by violent offenders released on bail since House Democrats came out in late May to scuttle a electoral bill. The bail bill is also dead.

“These five people were all murdered by multiple bail defendants for felony offenses, the exact kinds of people we are targeting,” she said. Speaking loudly, Huffman also spoke of a recent shooting in a domestic violence case in which there was not only a protective order, but the shooter had seven outstanding felony warrants.

“Doesn’t that horrify you? It certainly should, ”she said. “And that should horrify House Democrats languishing in Washington, showing us their selfies.”

Members of the Texas House spontaneously recited the pledges of allegiance to the flags of the United States and Texas on Wednesday. Most of the members represented are Republicans, but four Democrats remained in Austin, including Dallas Rep. John Turner (in dark suit, top left). (Bob Daemmrich / Bob Daemmrich)

On the election bill, Taylor and Mineola, Republican Senator Bryan Hughes, rebutted Democrats’ claims that, in promoting such legislation, GOP lawmakers and Governor Greg Abbott gave credence to the baseless claims of the former President Donald Trump that there was widespread voter fraud in last year’s presidential election. competition.

Taylor denied suggestions that Republicans would legislate to perpetuate a “big lie” about Trump’s loss to President Joe Biden.

“We know this is happening,” he said, referring to voter fraud. “It’s not about Trump 2020. It’s about what’s right for Texas.”

Hughes, author of Senate Bill 1, which the Senate passed and sent to the House on Tuesday, said greater transparency at polling stations, checks on postal ballots and more penalties strict rules for “collecting the ballots” are necessary to ensure that the elections are safe and have integrity.

“Voters fall prey to ballot collectors, people who try to cheat for political and monetary gain,” Hughes said.

“Sadly, it is our most vulnerable constituents, the elderly, those with limited English, who are most often the prey.”

Later Wednesday, the Senate passed bills it approved in the regular session – on bail and trying to deter “censorship” from conservative views by allowing lawsuits against social media companies.

It also passed two bills granting land tax relief. Homeowners would be allowed an exemption from ownership immediately, rather than January 1 of the following year. The other, if voters approved a proposed constitutional amendment, would give elderly and disabled homeowners a “continuous tax cap adjustment” that would maintain their school property taxes.

In a written statement, Lt. Gov. Dan Patrick warned that “before Texans can benefit from this property tax relief” Democrats must return and the House must resume its activities. Senators will, however, continue to adopt the measures “until the House finally has a quorum,” Patrick promised.

In the House, Phelan sent the 150 members a note on Wednesday afternoon with his per diem claim.

“I ask all members who are intentionally absent in order to prevent the House from conducting business during the special session to return your constitutional indemnity to the Treasury upon receipt,” the speaker wrote.

However, as his memo suggested, payments are sent automatically to members, “regardless of the member’s presence or not.”

Also on Wednesday, Phelan and House Credit Committee Chairman Greg Bonnen, R-Friendswood, met with the leadership of the main group of retired teachers. Offering retirees a one-time additional payment of up to $ 2,400 is one of 11 items Abbott added to the special session agenda. While Bonnen and other budget writers failed to insert money for the so-called 13th state budget check they drafted and approved in May, GOP leaders criticize Democrats for having prevented its adoption during the extraordinary session.

Earlier on the House floor, dozens of Republicans and four Democrats who remained in Austin gathered for about three hours. But because they don’t have 100 of the 150 members present, they can’t do business.

Phelan said the House was mimicking a “Congressional precedent” that “the only business allowed is daily prayer.” He hasn’t developed.

“Lord, we come to you during a difficult time in Texas,” prayed Republican Representative Ben Leman of Iola in Grimes County.

Members, who are accustomed to pledging allegiance to the flags of the United States and Texas immediately after the opening prayer, began to shout, “Promise, promise!

Rep. Phil Stephenson, R-Wharton, who has enthusiastically led the House in engagements this year, stood up and began leading members in flag engagements.

Texas House Republican members hovered around the floor on Wednesday.  To leave the Chamber, Members must obtain a written authorization note from President Dade Phelan.
Texas House Republican members hovered around the floor on Wednesday. To leave the Chamber, Members must obtain a written authorization note from President Dade Phelan.(Bob Daemmrich / Bob Daemmrich)

Phelan must sign authorization notes for members to be allowed to leave the chamber. Wednesday’s notes were on yellow paper. He asked the members to return Thursday at 11 a.m.

Also on Wednesday, Arlington GOP Representative Tony Tinderholt said he and some like-minded colleagues were pushing House leaders to allow a vote on a plan he said would increase the pain of absent lawmakers for having halted activity in Austin.

Although the State constitution requires that two-thirds of the members of each chamber be present for any business to be conducted, the same provision also allows “a smaller number” – it does not say how many – to “adjourn from one day to the next and to oblige the presence of absent members, in the manner and under the penalties which each Chamber can foresee.

Tinderholt said he was pressuring Phelan and MPs Hugh Brady and Sharon Carter to interpret this as allowing a “minority quorum” to approve a motion to compel attendance.

Committee chairs and vice-chairs, the post of interim chair (now held by El Paso Democrat Joe Moody) and certain “privileges” such as positions on administrative committees should be taken away from members who have unjustified absences , Tinderholt said.

“We have to get our peers to come back and do our job for Texas,” he explained in an interview.

House rules that were passed in January, however, are silent on penalties for breaking the quorum – other than to allow for actions already taken, such as a “House appeal” and a directive that the sergeant-at-arms brings back the missing members, using other law enforcement officers and arrest powers as necessary.

Tinderholt said that until 1993, House rules stipulated that chairs and vice-chairs of standing committees sat at the pleasure of the chair, meaning the chair could remove them at any time.

Since the current rules make no provision for removing such committee heads, Tinderholt is almost certain to face reluctance from his colleagues. They would probably say he would have to change the rules to do what he suggests – and without a quorum that can’t be done.



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What is the debt ceiling? https://westielovers.com/what-is-the-debt-ceiling/ https://westielovers.com/what-is-the-debt-ceiling/#respond Tue, 13 Jul 2021 10:33:03 +0000 https://westielovers.com/what-is-the-debt-ceiling/ Congress heads for a summer battle over spending levels as Democrats rush to craft a pair of spending bills while simultaneously tackling the debt ceiling to keep the United States from defaulting on its financial obligations. In 2019, former President Donald Trump suspended the country’s borrowing limit for two years, but that suspension is set […]]]>


Congress heads for a summer battle over spending levels as Democrats rush to craft a pair of spending bills while simultaneously tackling the debt ceiling to keep the United States from defaulting on its financial obligations.

In 2019, former President Donald Trump suspended the country’s borrowing limit for two years, but that suspension is set to expire on July 31, and Democrats apparently do not yet have a plan to increase the limit or suspend it again.

“We are looking at all options,” House Speaker Nancy Pelosi recently told Bloomberg News.

WHAT IS A WORLDWIDE MINIMUM IMPT AND HOW WOULD IT WORK?

During her testimony to Congress, Treasury Secretary Janet Yellen urged lawmakers to tackle the looming debt ceiling, warning that failure to adhere to this rule could lead to a financial crisis that threatens jobs and savings of Americans still recovering from the coronavirus pandemic.

“A default on the national debt should be seen as unthinkable. Failure to raise the debt ceiling would have absolutely catastrophic economic consequences,” Yellen said. “It would be completely unprecedented in American history for the United States government to fail in its legal obligations. “

But what is the debt ceiling, which is often used as a political football – and how could it affect individual Americans if Congress does not raise the ceiling?

The debt ceiling, which is currently around $ 22 trillion, is the legal limit on the total amount of debt the federal government can accumulate; according to Committee for a Responsible Federal Budget, it applies to both the $ 16.2 trillion held by the public and the $ 5.9 trillion owed by the government.

THE TAX INCREASE PROPOSED BY BIDEN OF 39.6% WILL REACH THESE PEOPLE, FAMILIES

If Congress is unable to raise the debt ceiling, the Treasury would enter uncharted territory, unable to pay the bills – including payments to Social Security recipients, government employees, or the military – because he would not have money in hand. The Treasury Department would no longer be able to issue any more bills or bonds and would instead have to rely on tax revenue and emergency accounts to foot the bill.

As a result, the federal government would have to temporarily default on some of its obligations, which could have serious and negative economic consequences. Interest rates would likely rise and the demand for treasury bills would fall; even the threat of default can lead to increased borrowing costs.

The United States has never defaulted on its debt before, but came close in 2011, when House Republicans refused to raise the debt ceiling, prompting the rating agency Standard and Poor’s to downgrade the US debt rating by a notch.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Many experts, however, believe that mass economic chaos due to the United States defaulting on its debt is unlikely. Congress raises the ceiling when it needs to; since the debt ceiling was created in 1917, Congress has raised it 110 times.

“Even if the extraordinary measures and Treasury liquidity were depleted, it still would not mean default,” Fisher Investments said in a recent RealClearMarkets editorial. “Default does not mean delaying payments to suppliers, social security or other supposed obligations. It is one thing and only one: not to pay interest or to repay the principal of the debt when due.”



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Low demand to raise rates on treasury bills, bonds https://westielovers.com/low-demand-to-raise-rates-on-treasury-bills-bonds/ https://westielovers.com/low-demand-to-raise-rates-on-treasury-bills-bonds/#respond Sun, 11 Jul 2021 16:04:34 +0000 https://westielovers.com/low-demand-to-raise-rates-on-treasury-bills-bonds/ NB FILE PHOTO GOVERNMENT SECURITY RATEtie on offUm this week, that could increase slightly after the peso hits the 50p per dollar level and demand for safe-haven assets declines as the economic recovery gathers pace. The Treasury Office (BTr) will auction on Monday 15 billion pesos of treasury bills (treasury bills), divided into 5 billion […]]]>


NB FILE PHOTO

GOVERNMENT SECURITY RATEtie on offUm this week, that could increase slightly after the peso hits the 50p per dollar level and demand for safe-haven assets declines as the economic recovery gathers pace.

The Treasury Office (BTr) will auction on Monday 15 billion pesos of treasury bills (treasury bills), divided into 5 billion pesos each in debt securities at 91, 182 and 364 days.

Tuesday the BTr will be offer 35 billion pesos in new 20-year Treasury bonds (T-bonds).

Two bond traders polled on Friday said they expected Treasury bill rates to move sideways with a slight upward bias compared to yields at last week’s auction.

For 20-year bonds, the FiThe first trader saw his coupon rate going from 4.875% to 5.125%, while the second trader gave a higher forecast range of 5% to 5.25%.

“The market took a defensive stance last week due to the relatively high USD / PHP levels and the breaking of the psychological handle P50,” the lead trader said.

The peso depreciated to P50.08 against the greenback on Friday after closing at P49.875 on Thursday. It was his weakest Fiin more than a year or since its closing of P50.19 per dollar on June 23, 2020.

Meanwhile, the second trader said the demand for government securities has declined off recently, as investors start to look to other high yielding assets due to signs of economic recovery at home and abroad.

The Philippines’ merchandise exports and imports continued to grow in May, although at a slower pace than in April, according to the latest data from the Statistics Authority of the Philippines.

Exports rose 29.8% yoy to $ 5.89 billion in May to rebound from the contraction of 27% a year ago, while imports rose 47.7% to 8.65 billion dollars compared to the 41% drop in the same month last year. However, analysts noted that the rebound was less than expected and the increase may have been largely due to the base thffect.

Local manufacturers also reported improving conditions in June after IHS Markit’s Philippine Manufacturing Purchasing Managers’ Index (PMI) rose to 50.8 last month from 49.9 in May, the first time since. March that the index broke the 50 neutral mark that separates contraction from expansion.

The BTr last week made a full price of its offst of P15 billion treasury bills, with total offers reaching P49.323 billion.

Broken down, the Treasury raised 5 billion pesos as programmed via the 91-day debt securities. Three-month bonds reached an average rate of 1.044%, up from the 1.031% quoted at the June 28 auction.

He also borrowed the expected 5 billion pesos on 182-day treasury bills at an average rate of 1.351%, up from 1.332% previously.

Finally, the BTr allotted 5 billion pesos of the 364-day securities that it offered, while the average yield edged up to 1.568% from 1.562% the week before.

Meanwhile, the last time the Treasury offered the 20-year term was on June 29, when it raised 35 billion pesos as planned through reissued papers that have an 11-year remaining term. and eight months. The offuh attracted P65.265 billion offers.

The reissued bonds reached an average rate of 4.187%, above the coupon of 3.635% quoted for the series.

On the secondary market on Friday, the 91, 182 and 364 day T-bills were listed at 1.178%, 1.412% and 1.602%, respectively, based on the PHL Bloomberg valuation benchmark rates published on the website of the Philippine Dealing System. Meanwhile, the 20-year note reached a rate of 4.967%.

The Treasury is looking to raise 235 billion pesos from the local market this month: 60 billion pesos through weekly Treasury bill offers and 175 billion pesos from weekly Treasury bond auctions.

The government wants to borrow P3 trillion from domestic and external sources this year to help finance a budget ofFicit reached 9.3% of gross domestic product. – Beatrice M. Laforga



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CASH-US yields climb as rally comes to a halt after streak of 8 consecutive days https://westielovers.com/cash-us-yields-climb-as-rally-comes-to-a-halt-after-streak-of-8-consecutive-days/ https://westielovers.com/cash-us-yields-climb-as-rally-comes-to-a-halt-after-streak-of-8-consecutive-days/#respond Fri, 09 Jul 2021 18:41:33 +0000 https://westielovers.com/cash-us-yields-climb-as-rally-comes-to-a-halt-after-streak-of-8-consecutive-days/ (Price update, add reverse repo data) By Chuck Mikolajczak NEW YORK, July 9 (Reuters) – US Treasury yields climbed on Friday, ending an eight-day price rally fueled in part by fears that the economic recovery has already reached showing signs of slowing down amid an increase in coronavirus infections in many parts of the world. […]]]>


(Price update, add reverse repo data) By Chuck Mikolajczak NEW YORK, July 9 (Reuters) – US Treasury yields climbed on Friday, ending an eight-day price rally fueled in part by fears that the economic recovery has already reached showing signs of slowing down amid an increase in coronavirus infections in many parts of the world. Recent data in the labor market and the service sector have made investors reflect on the fact that the US economy may not strengthen as quickly as initially expected and may show signs of emerging underlying weakness, while that the Delta variant of COVID-19 has heightened fears that economies around the world may need to reimpose restrictions. Pfizer and its partner BioNTech plan to ask U.S. and European regulators within weeks to authorize a booster dose of their COVID-19 vaccine, based on evidence of an increased risk of infection six months after the inoculation and spread of the highly contagious Delta variant. “As we go through the summer here, you start to worry that in the fall we will shut down again, it’s really kind of a worry,” said Tom di Galoma, Managing Director of Seaport Global Holdings in New York. “It’s kind of pushed back to where we were supposed to have this big pandemic escape, that’s one of the big issues.” The yield on 10-year Treasuries rose 7 basis points to 1.358% after falling to 1.25% on Thursday, the lowest level since February 16. The eight days of falling yield at 10 years marked the longest such streak. from a nine-session drop that ended on March 3, 2020, as the COVID-19 pandemic in the United States gathered speed. Analysts said recent volatility in oil markets, a lack of supply with a shortage of long-term government auctions this week, and a largely short market also contributed to lower yields. Analysts said next week’s US Treasury auctions could help supply and boost yields, with $ 38 billion in 10-year bonds offered on Monday, followed by $ 24 billion in 30-year bonds. years Tuesday. Low immunization rates in some parts of the world pose a threat to the United States and global growth, the Federal Reserve’s Mary Daly told the Financial Times, adding that the U.S. central bank is fully committed to eliminating shortages of jobs. The amount of liquidity entering the Fed’s overnight repo transaction edged down to $ 780.6 billion on Friday from $ 793.4 billion on Thursday, and was well below the record high of $ 992 billion. last Wednesday’s dollars. A closely watched portion of the U.S. Treasury yield curve that measures the spread between two-year and ten-year Treasury bill yields, seen as an indicator of economic expectations, was at 114.1 basis points after falling flattened to 104.2 a day earlier, the narrowest since Feb 12. It flattened about 5 basis points over the week. Even with Friday’s rise, the benchmark 10-year yield is down more than 7 basis points on the week and poised for its biggest two-week drop in about 13 months. The 30-year Treasury bond yield rose 7.5 basis points to 1.985% after falling to 1.856% on Thursday, marking its lowest level since February 2. July 9 Friday 2:25 p.m. New York / 1825 GMT US price T BONDS SEP1 162-18 / 32 -1-12 / 32 10YR TNotes SEP1 133-108 / 256 -0-120 / 2 56 Price Current net yield% Change (bp) Bons at three months 0.0525 0.0532 0.000 Notes at six months 0.0525 0.0532 0.002 Two Note at – years 99-211 / 256 0.2146 0.023 Note at 3 years 99-150 / 256 0.3925 0.036 Note at 5-year 100-112 / 256 0.785 0.048 7-year note 100-236 / 256 1.1121 0.058 10-year note 102-116 / 256 1.3578 0.070 30-year bond 108-192 / 256 1.985 0.075 SPREADS SWAP DOLLAR Last ( bp) Net change (bp) 2-year US dollar swap 8.25 0.25 3-year US dollar swap spread 12.25 0.25 5-year US dollar spread 8.50 0.50 10-year US dollar swap -0.50 0.75 30-year US dollar spread swap -27.75 spread at 1.50 (Report by Chuck Mikolajczak; edited by Kirsten Donovan and Leslie Adler)



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Zimbabwe: RBZ TBs raise $ 550 million https://westielovers.com/zimbabwe-rbz-tbs-raise-550-million/ https://westielovers.com/zimbabwe-rbz-tbs-raise-550-million/#respond Wed, 07 Jul 2021 10:39:47 +0000 https://westielovers.com/zimbabwe-rbz-tbs-raise-550-million/ The Reserve Bank of Zimbabwe (RBZ) raised $ 550 million through the latest Treasury bill (TB) issue last week after issuing a one-year paper to raise $ 1 billion. In a previous issue that also aimed to raise $ 1 billion, the central bank raised $ 650 million. Full underwriting for one of these recent […]]]>


The Reserve Bank of Zimbabwe (RBZ) raised $ 550 million through the latest Treasury bill (TB) issue last week after issuing a one-year paper to raise $ 1 billion.

In a previous issue that also aimed to raise $ 1 billion, the central bank raised $ 650 million. Full underwriting for one of these recent issues is said to have seen the biggest increase since tax authorities imposed a moratorium on Treasury bill issues in 2018. The Treasury has indicated its intention to raise $ 30 billion through the government. through the issuance of treasury bills and bonds to finance more government projects in line with the 2021 national budget. TBs are short-term financial instruments issued by the public treasury and payable at face value after a particular maturity period, often a year at most.

A stable macroeconomic environment – aided by fiscal prudence and the RBZ-based currency auction system – has improved the market’s appetite for government papers in recent months after declining demand due to rising inflation in the past. And the authorities’ tendency to issue TBs can be attributed to current budget constraints due to limited external credit support.

The latest TBs, which were issued on July 1, raised $ 550 million at an average rate of 20,8182 percent. The lowest rate was 20.5 percent and the highest rate was 21 percent.

All bids were awarded in full on average.

In recent issues, RBZ has been limited to one year – 365 days – of paper, although the issue trend has been a combination of 180-day, 270-day, and 365-day paper, while the duration of bond maturity ranges from two years to 10 years.



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T-bill yields rise, 91 days to 1.044% – Manila Bulletin https://westielovers.com/t-bill-yields-rise-91-days-to-1-044-manila-bulletin/ https://westielovers.com/t-bill-yields-rise-91-days-to-1-044-manila-bulletin/#respond Mon, 05 Jul 2021 09:06:27 +0000 https://westielovers.com/t-bill-yields-rise-91-days-to-1-044-manila-bulletin/ T-bill yields rise, 91 days to 1.044% Yields on short-term debt securities edged up across the board yesterday amid lingering concerns over the “Delta” variant of the coronavirus and sustained high inflation in June, the Treasury Office said. In Monday’s July 5 treasury bill auction, the rate on 91-day treasury bills, which banks use to […]]]>


T-bill yields rise, 91 days to 1.044%

Yields on short-term debt securities edged up across the board yesterday amid lingering concerns over the “Delta” variant of the coronavirus and sustained high inflation in June, the Treasury Office said.

In Monday’s July 5 treasury bill auction, the rate on 91-day treasury bills, which banks use to price their loans, rose to 1.044% from 1.031% previously.

The Treasury sold the 5 billion pesos of three-month debt securities offered. Investors were however asking for P16.55 billion from government security or IOUs.

Six-month Treasury bill rates also rose to 1.365% from 1.332% previously, with the government accepting offers for 5 billion pesos on the 182-day papers offered even as the total of offers reached 16.11 billion. pesos.

In addition, the yield on one-year debt securities edged up to 1.575 percent from 1.562 percent as the government accepted bids worth 5 billion pesos as expected as total bids reached 16.66 billion pesos.



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Let’s all please stop calling dollars “fiat money” https://westielovers.com/lets-all-please-stop-calling-dollars-fiat-money/ https://westielovers.com/lets-all-please-stop-calling-dollars-fiat-money/#respond Sat, 03 Jul 2021 04:00:49 +0000 https://westielovers.com/lets-all-please-stop-calling-dollars-fiat-money/ Sometimes it is possible to oversimplify something. Over a decade ago, Ben Bernanke, then chairman of the Federal Reserve Board of Governors, sat down for an interview with 60 minutes, the TV show important Americans call when they have important things to say. Bernanke explained how the Fed reacted to the financial crisis. When it […]]]>


Sometimes it is possible to oversimplify something. Over a decade ago, Ben Bernanke, then chairman of the Federal Reserve Board of Governors, sat down for an interview with 60 minutes, the TV show important Americans call when they have important things to say.

Bernanke explained how the Fed reacted to the financial crisis. When it came to asset buying programs, the host asked if the Fed was spending taxpayers’ money.

“It’s not tax money”, Bernanke mentionned. “Banks have accounts with the Fed, the same way you have an account at a commercial bank. So to lend to a bank we just use the computer to mark the size of the account they have at the Fed. The host asked him if the Fed had printed money. “Well,” said Bernanke, “indeed. ”

He was not wrong, of course. It’s Ben Bernanke. You might disagree with his political choices, but he certainly knows how money is created.

This quote from 60 minutes, however, still comes back, often, more than a decade later. When Bernanke simplified what the Fed does, he confirmed to a lot of people the deeply mistaken idea that the Fed just magic dollars out of thin air and then, by executive order, says, “There. It’s money.

There is a problem with the word “fiat”. We use it to describe our current monetary system. Then we teach undergraduates that the word comes from Italian for decree, or edict. We tell them that fiat money is a social convention. It is valuable because the government says it is, and everyone agrees. Cameron Winklevoss, co-founder of the Gemini crypto exchange, said that “all the money is a meme”. That’s what he was taught at Harvard while doing the other thing he’s famous for.

Unfortunately, that’s not how money works at all. The first description I could find of money as “fiat” comes from John Stuart Mill, the English philosopher, in Principles of political economy. Mill proposed a hypothesis: Suppose a government starts paying wages in paper money that cannot be converted on demand to silver or gold. The value of that money, he wrote, “would depend on the decree of authority.”

Well yeah. If the US Treasury Department were to print carnival tickets, spend them in the economy, and call them dollars, the value of those dollars would depend on the executive order of Congress. But that’s not what the treasury does, and that’s not what a dollar is.

If you live in the United States, the dollars that you use the most in your daily life are bank dollars. Your bank creates them when it lends you money, and then deposits them into your account.

Bank dollars have no value just because your bank says so. Your bank has regulators on their books to make sure these loans are solid assets with decent returns. And your bank pays premiums to the Federal Deposit Insurance Corporation, to guarantee your deposits in case it fails anyway. If bank dollars are just a social convention – a meme – then your mortgage is just a meme, too.

Now take the Fed. It’s just a special bank. As Bernanke said, commercial banks have deposit accounts with the Fed. When the Fed lends them money, it marks their accounts with dollars which we call reserves. And, just like when commercial banks lend you money, these reserves are a liability for the Fed. But there is a crucial part of the process that did not come to fruition 60 minutes: When the Fed grosses up these accounts, it also buys assets. He exchanges, one for one: reserves for assets.

When we say that the Fed prints money, we are implying that there was nothing, and now there is something. Ta da! But, that’s not what happens at all. The Fed has to buy something. This is usually a treasury bill, but in an emergency it may be a more questionable asset. Then the Fed credits the reserves. To believe that these reservations are just a meme, you have to believe that the assets are just a meme. But they are not. Don’t take my word for it. The Fed’s assets deliver a return, every year, lean years and fat years, without fail.

OKAY. Now let’s move on to the Treasury Department. He also has an account with the Fed, but he can’t just magically take dollars out of his account. The Treasury can put dollars in its account by collecting taxes, or by selling Treasury bills. There is no decree, no decree. There is no money printer anywhere. It’s all transactions on a balance sheet, assets for liabilities.

Now: You can believe that all of those mortgages and credit card loans are meaningless assets. You may think that the US government will not be able to collect enough taxes to renew these treasury bills. If you are right, then yes, the dollar has no value. But we’re still not talking about trusting anyone. We are talking about credit analysis. So please: let’s stop calling it fiat money. Let’s start by calling it what it is: credit money.





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Explanation: How excess liquidity occurs in money markets and reverse repurchase agreements in the United States https://westielovers.com/explanation-how-excess-liquidity-occurs-in-money-markets-and-reverse-repurchase-agreements-in-the-united-states/ https://westielovers.com/explanation-how-excess-liquidity-occurs-in-money-markets-and-reverse-repurchase-agreements-in-the-united-states/#respond Fri, 02 Jul 2021 18:41:00 +0000 https://westielovers.com/explanation-how-excess-liquidity-occurs-in-money-markets-and-reverse-repurchase-agreements-in-the-united-states/ An eagle looms over the facade of the US Federal Reserve building in Washington, July 31, 2013. REUTERS / Jonathan Ernst / File Photo NEW YORK, July 2 (Reuters) – The US debt ceiling returns to effect at the end of July, putting pressure on the Treasury to reduce its cash flow ahead of the […]]]>


An eagle looms over the facade of the US Federal Reserve building in Washington, July 31, 2013. REUTERS / Jonathan Ernst / File Photo

NEW YORK, July 2 (Reuters) – The US debt ceiling returns to effect at the end of July, putting pressure on the Treasury to reduce its cash flow ahead of the deadline. This means more injections of liquidity into a financial system that is already overflowing with liquidity, which could lower short-term rates and cause undue distortion of money markets.

Nearly a record trillion dollars in cash poured into the Federal Reserve’s reverse repurchase facility (RRP) on Wednesday.

On Thursday and Friday, reverse repo volumes reached $ 742.6 billion and $ 731.5 billion, respectively.

The record volume came after the Fed last month made a technical adjustment to the interest rates it manages, raising the rate paid by banks on excess reserves (IOER) held at the Fed to 0, 15% against 0.10% and increasing the rate paid on repurchase agreements to 0.15%. 0.05% from zero.

WHAT IS THE FED REPO REPO WINDOW?

The Fed launched its reverse repo program (RRP) in 2013 to mop up additional liquidity in the repo market and create a hard floor below its policy rate, or the effective federal funds rate, currently in a target range of 0% to 0.25%. Eligible counterparties lend liquidity to the Fed in exchange for overnight Treasury guarantees.

WHAT IS THE RELATIONSHIP BETWEEN THE CASH VOLUME AND THE DEBT CEILING?

The market is facing excess liquidity in the banking system due to the Fed’s asset purchases as part of quantitative easing and the US Treasury’s financial support to the economy in response to the pandemic.

The US Treasury must reduce its cash balance in the General Treasury Account (TGA) deposited with the Fed to a target of $ 450 billion before a two-year debt ceiling suspension expires on July 31. read more As of June 29, the Treasury has a cash balance of $ 711 billion, according to Wrightson ICAP data.

A reduction in the TGA increases the reserves of the banking system, which are now paid into the RRP market.

IS REPO REPO VOLUME GROWTH A CONCERN?

Raising RRP rates could reduce the demand of money market funds for US Treasuries, as the rates for the latter are at their lowest. For example, 3-month US Treasury bill rates are currently hovering below 0.05%.

Zoltan Pozsar, global head of short-term interest rate strategy at Credit Suisse, said the rotation of invoices to RRPs will not happen quickly because invoices are currently underwater, which means they are underwater. can only be sold at a loss.

“But will it happen,” he said.

Investors are also watching whether the amount of reserves and deposits that banks could lose to the RRP facility could be large enough to disrupt the dynamics of the interest rate market.

Lou Crandall, chief economist at Wrightson, believes bank cash outflows are not yet a problem.

If banks are worried about seeing excessive cash outflows because money market funds can earn 0.05% with the RRP facility, they can match that rate to hold their deposits, he said.

Reporting by Gertrude Chavez-Dreyfuss; Editing by Alden Bentley and Andrea Ricci

Our standards: Thomson Reuters Trust Principles.



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