Bonds
Fed’s Cook is concerned about non-banks and real estate prices
Hedge funds could rapidly pull out of Treasury cash futures market
Asian bond spreads with US not widening, BIS research finds
Central banks’ actions have decoupled EME bonds from stronger dollar, researchers say
US fiscal stimulus decreases output in rest of world – research
A helicopter drop policy could be the most effective co-ordinated effort
BoJ scraps rigid bond yield cap
Central bank further loosens YCC, ends daily bond buys and raises inflation forecasts
Court grants Evergrande five more weeks to avert liquidation
Hong Kong court gives Chinese developer until December 4 to revise restructuring plan
Default fears loom over Country Garden
The Chinese developer reportedly missed a final deadline to repay $15.4 million in interest
Bank Indonesia resumes tightening to stabilise currency
Central bank to issue FX-denominated notes to attract capital inflows
Liquidity impacts monetary policy transmission – BoE paper
Hedge funds play key role in transmission at longer maturities, authors find
Higher bond yields makes an ECB pause more likely
Lower inflation and tighter financing conditions reinforce idea 4% rates could be enough
Bond market turmoil could aid Fed policy, say FOMC members
Phillip Jefferson and Lorie Logan say financing points to strong economic momentum
BoE to conduct ‘desk-based stress test’ for 2024
Financial policy committee warns of some risks in UK corporate and household finance
Bank of Japan steps up bond purchases
Central bank faces pressure to raise rates as yields on 10-year government bonds rise
PEPP to become ECB’s weapon of choice
Facing high but falling inflation, the governing council is expected to hold rates
Over 15% of reserve managers plan diversification changes
Close to 14% of participants will increase diversification, while 17.2% are discussing changes
Fewer central banks added new reserve assets in 2023
Overall, 10.3% of institutions diversified their asset allocation, down from 18.6% last year
Joachim Nagel on the ECB’s terminal rate, fiscal policy, model relevance and the digital euro
The Deutsche Bundesbank president speaks about compromise on the Governing Council, rolling back PEPP, the need to implement Basel III and the chances of a revised Stability and Growth Pact
BoJ leaders divided on wage growth and timing of tightening
July minutes show disagreement over when firms will raise wages
BoJ keeps negative rates unchanged
Ueda says more time is needed to assess whether rising wages are supporting inflation
Carney derides UK ex-PM’s economic policy
Former BoE governor says cutting taxation does not automatically lead to growth
Book notes: The Continental dollar, by Farley Grubb
Grubb’s book brings an important new interpretation to this founding moment in US financial history
ECB: from a supply to a demand-driven floor?
Eurozone’s central bank expected formally to abandon corridor in forthcoming operational framework review
Brics’ bank launches rand bond
New Development Bank offers $130.6 million debt issue ahead of Johannesburg summit
FDIC chair promises stricter rules for mid-sized banks
Gruenberg says regional banks will need better resolution plans and more long-term debt
Earth to Jackson Hole: create sustainable future bonds for stability and prosperity
Marina Zucker-Marques and Kevin Gallagher offer a template for a new central bank asset