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Posts by "catnip"
2150 Posts Total by "catnip":
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Posts by Anonymous "catnip":
re PIGS is as ridiculous as it can get.
this is certainly correct. However if the 10 y future drops this could be reflecting an oversupply of UST
or the expectation thereof. This is I think equivalent to expectation of rising yield. If it were a commodity future it were backwardation. I am wrong ?
Tue Apr 6, 2010 3:07pm EDT
WASHINGTON (Reuters) - The Federal Reserve is considering allowing maturing Treasury bonds to roll off its portfolio as an alternative way to drain reserves from the banking system, according to minutes from its March meeting.
The move would mark a shift from the current policy of reinvesting the proceeds from government debt into new Treasury bonds as the old ones come due.
This would serve as an additional tool for removing the extraordinary stimulus the Fed injected into the banking system in response to the worst financial crisis since the Great Depression.
"Redeeming all of its maturing Treasury holdings would significantly reduce the size of the Federal Reserve's balance sheet over coming years and hence could be helpful in limiting the need to use other reserve draining tool such as reverse repurchase agreements," the minutes said.
Many economists, including some key Fed officials, worry about whether the large amount of excess reserves now sloshing around the banking system will dampen the central bank's ability to tighten policy effectively.
but WHY should I go long on GBPUSD? I see no reason for USDx drop but many for GBP weakness.
I don't use charts as source of entry/exit signals I work only with bond and credit market figures
and use a multivariated approach to determine values of currencies and pair weak and strong.
Now USD isn't as strong as calculated. But mostly I trust my approach I don't see much strength in GBP
Since I am a swing&scalp trader I am not much interested in perfect exit signals only in entry. 10% is better than 100% you'll be waiting for forever.