News

PA Market Report: Overview (June 7 – June 11) & Upcoming Events June’21

priceactionadmin 3 years ago

Jun 7:

Japan Spring wage talks have resulted in avg pay increase of 1.82% according to Japan Business Federation, this is the first time below 2% since 2013 (Japan)

(JP) Japan Spring wage talks have resulted in avg pay increase of 1.82% according to Japan Business Federation, this is the first time below 2% since 2013 (slowest pace since 2008 financial crisis)

Japan: The Gov Would Collaborate With BoJ To Revitalize The Economy To Prevent Deflation (Japan)

JAPAN’S ECONOMY MINISTER NISHIMURA: THE GOVERNMENT WOULD COLLABORATE WITH THE BOJ TO REVITALIZE THE ECONOMY TO PREVENT DEFLATION.

Jun 8 :

Job Openings and Labor Turnover – April 2021 (USA)

The number of job openings reached a series high of 9.3 million on the last business day of April, the U.S. Bureau of Labor Statistics reported today. Hires were little changed at 6.1 million. Total separations increased to 5.8 million. Within separations, the quits rate reached a series high of 2.7 percent while the layoffs and discharges rate decreased to a series low of 1.0 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, by four geographic regions, and by establishment size class.

Jun 9 :

Haldane: UK Economy Is Going Gang-Busters (UK)

BoE’s Haldane: Need To Keep Spending Demand In Economy Strong
Some Pay Rises Might Be Needed
UK Economy Is Going Gang-Busters

EU Commission VP Sefcovic: Our patience is wearing thin with the UK, we do not want retaliation to happen (EU)

EU’s Sefcovic, on the latest Brexit impasse, says cross-retaliation could mean quotas and tariffs. ~ Plenty of bark from both sides this morning, brings back happy memories of the Brexit shit-flinging of yore..

Bank of Canada will hold current level of policy rate until inflation objective is sustainably achieved, continues quantitative easing (Canada)

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate. This is reinforced and supplemented by the Bank’s quantitative easing (QE) program, which continues at a target pace of $3 billion per week. With COVID-19 cases falling in many countries and vaccine coverage rising, global economic activity is picking up.

Treasury Auction Results (USA)

Having seen yields in the secondary market plunge to 3-month lows during the morning, Treasuries were sold ahead of the $38 billion reopening 10-year sale (backup to a When Issued yield of 1.507% – from 1.4705% intraday lows). Demand was stellar with the bid-to-cover (2.58x) surging to its highest since July 2020

Jun 10 :

Monetary policy decisions (EU)

At today’s meeting, the Governing Council decided to confirm its very accommodative monetary policy stance: The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively.

The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation

Consumer Price Index – May 2021 (US)

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in May on a seasonally adjusted basis after rising 0.8 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 5.0 percent before seasonal adjustment; this was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008. The index for used cars and trucks continued to rise sharply, increasing 7.3 percent in May.

ECB Lagarde: preserving favorable financing conditions essential; premature tightening poses risk to growth, inflation (EU)

ECB LAGARDE: PRESERVING FAVORABLE FINANCING CONDITIONS ESSENTIAL – BBG

*LAGARDE: PREMATURE TIGHTENING POSES RISK TO GROWHT, INFLATION

Treasury Auction Results (USA)

After two stellar auctions earlier this week, when buyers just couldn’t get enough of US paper, moments ago in the week’s final auction, the Treasury sold $24 billion in 30Y paper (in the form of a 29-Y 11-month reopening of Cusip SX7), to mixed demand. The high yield of 2.172% was a big drop from last month’s 2.395% and the lowest since February’s 1.933%; it was also a 1.1bps tail to the 2.161 When Issued, which however is likely a result of today’s sharp move lower in yields across the curve and the lack of concessions.