tyb
morning
G-7 and non G-7 to NATO wank-fest moving day ACs heading to Madrid
French AF CTM0001 A-330Merdeboi1 on this ACwith CTM0012 Falcon 7x as the escort departed Munich heading to Madrid
Polish AF PLF101 737Polish President Duda on this ACfrom Warsaw to Madrid
SAM310 USAF C-32ABlinken on this ACMunich to Madrid
Italian AF IAM9002 A319Mario Draghi on this ACjust departing Munich to Madrid
Hungarian AF HUAF298 A319 departed Budapest to Madrid
Greek AF HAF352B Falcon 7x Athens to Madrid
German AF GAF650 GLT5 on ground at Munich about to depart
Hungarian AF HUAF637 Falcon 7X Berlin to Madrid
Czech AF CEF02 A319 just departed Prague to Madrid
edit to 852
Moar 'moving day' ACs to Madrid
JASDF JF001 777PM Kishida on this ACdeparting Munich to Madrid
This will be the first time any Japanese leader has attended a NATO meeting in an official capacity
And handing out the 'dosh'
Japan PM Kishida: to extend additional $100 mln in humanitarian aid to Ukraine
https://www.reuters.com/world/asia-pacific/japan-pm-kishida-extend-additional-100-mln-humanitarian-aid-ukraine-2022-06-28/
SPAR87 NATO G5 departed Frankfurt after a ground stop-it departed Ramstein AFB earlier to Stuttgart and stop for 3.5 hours then to Frankfurt for 2.5 hours and now to Madrid
Slovenian AF LSV101President Borut Pahor on this ACdeparted Ljubljana to Madrid
Czech AF CEF02 A319likely PM Petr Fialaon this AC continues to Madrid from Prague
Italian AF IAM9002 A319Mario Draghicontinues SW to Madrid
>>140852 Cap#2
update on the others as they are arriving
Planefag housekeepin' and another PAT flight across the pond last night
PAT63 USAF G5 arrived at Frankfurt-Weisbaden AB last night (CONUS time) for 45 minutes then went to Ramstein AFB where it is now
PAT = Priority Air Transport
>>140781 lb PAT78 USAF G5 arrived at RAF Northholt
PAT78 still on ground at Northolt after yesterdays arrival
nice to see yer work come back
every once and a while I see some 'o mine
prolly see moar if I spent moar time dhere
Biden Faces New Border Furor After 48 Die in Texas Truck
The discovery of dozens of people dead in a tractor-trailer in Texas is renewing focus on the political standoff over the US-Mexico border, with President Joe Biden’s administration under pressure to crack down both on conventional crossings and extreme alternatives.
At least 48 people died in San Antonio, while 16 others were taken to the hospital. Authorities have launched a human smuggling investigation, and Mexico said that nearly half the dead were its citizens, but the investigation is ongoing. The sobering discovery on Monday has put fresh light on the border, where lengthy backlogs, byzantine immigration rules and wrangling over pandemic-era restrictions complicate the options for people to cross legally, leaving some to try and enter illegally through smuggling networks.
The number of fatalities is strikingly high, and it comes as Biden struggles to reshape the US approach, prompting a fresh wave of criticism from Republicans and border state officials.
“The loss of life is tragic, it’s unnecessary, and it’s a product of inaction within the federal government over decades,” San Antonio Mayor Ron Nirenberg told CNN on Tuesday. The area has seen issues with human smuggling before, but this is probably the worst, he added. “The people that are responsible for subjecting other people in these conditions should be prosecuted to the fullest extent of the law.”
The border has long been an intractable problem for Biden. His administration is moving to lift Title 42, a pandemic-era measure that expedited removal of people. Republicans have opposed lifting of the measure, and the effort remains mired in a legal fight. Congress has done nothing to move on immigration reform or to even confirm nominees to top posts. Biden’s pick to lead US Immigration and Customs Enforcement, Ed Gonzalez, dropped out this week, citing “paralyzing political gridlock that threatens far more than our nation’s border.” Several Republicans opposed Gonzelez’s confirmation, which was stymied for more than a year.
https://www.bnnbloomberg.ca/biden-faces-new-border-furor-after-48-die-in-texas-truck-1.1784989
>>140740 pb
Case-Shiller: National House Price Index Increased 20.4% Year-over-year in April + current 30 yr fixed rate
Note: S&P hasn't updated their data yet.
Prices rose 20.4% nationally in April compared with the same month a year ago, according to the S&P CoreLogic Case-Shiller Index. In March, home prices grew 20.6%. ...
The 10-city composite annual increase was 19.7%, up from 19.5% in March. The 20-city composite posted a 21.2% annual gain, up from 21.1% in the previous month. This was slightly below expectation.
Note that this monthly home price index release was for April, and "April" is a 3-month average of February, March and April closing prices. February closing prices include some contracts signed last December, so there is a significant lag to this data.
https://www.calculatedriskblog.com/2022/06/case-shiller-national-house-price-index.html
https://www.marketwatch.com/investing/loanrate/br2_zzm1
U.S. Consumer Confidence Drops To Lowest Level Since February 2021
Consumer confidence in the U.S. continued to deteriorate in the month of June, according to a report released by the Conference Board on Tuesday. The Conference Board said its consumer confidence index slid to 98.7 in June from a downward revision of 103.2 in May. Economists had expected the index to drop to 101.0 from the 106.4 originally reported for the previous month. With the continued decrease, the consumer confidence index fell to its lowest level since hitting 95.2 in February of 2021.
"Consumer confidence fell for a second consecutive month in June," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. "While the Present Situation Index was relatively unchanged, the Expectations Index continued its recent downward trajectory—falling to its lowest point in nearly a decade. "Consumers' grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices," she added. "Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year-end"
cause they never identify it when it habbens-always afterwards-if you remember they did this in 2008 with the 'quickest' "recession" ever-and only called one after it "ended".
The report showed the expectations index tumbled to 66.4 in June from 73.7 in May, hitting its lowest level since March of 2013.
Meanwhile, the present situation index showed a much more modest decrease, edging down to 147.1 in June from 147.4 in May. The University of Michigan released a separate report last Friday showing consumer sentiment in the U.S. tumbled by slightly more than initially estimated in the month of June. The report showed the consumer sentiment index for June was downwardly revised to 50.0 from the preliminary reading of 50.2.
The consumer sentiment index is down sharply from the final May reading of 58.4, plunging to its lowest level on record.
https://www.nasdaq.com/articles/u.s.-consumer-confidence-drops-to-lowest-level-since-february-2021
>all grilled
ty
pretty slow and expect it to be while the wank-fest goes on-dhey need eyes on that shit
There ya go-the attack fer the Tuesday (weekly) print-at 1:30pm EST in front of the Q close...and began right before the NYMEX open...and then continued...
$20.90-0.27 -1.25%
https://www.kitco.com/charts/livesilver.html
June 23-24 and 27: 294,272 contracts 'traded' at 5k ozs per contract gives you 1,471,360,000 ozs and let's take and avg price of $21 for a total of$30,898,560,000for three days of activity going into the Q2 close.
https://www.cmegroup.com/markets/metals/precious/silver.volume.options.html#optionProductId=458
Gold/Silver Ratio currently $87.064+1.006 (+1.17%)
https://goldprice.com/gold-silver-ratio/
>>140370 pb from friday
>Silver was bought back over $21 after a big spike down to $20.57 and Au had a similar drop down $1816.60 and both were 'bought' back pretty quickly.
>Pretty sure they are gonna get Ag to $20 for the Q close next week-or as close as they can
RCAF CFC01 A310Trudope on this ACMunich to Madrid
German AF GAF866Olaf Scholz on this ACMunich to Madrid
JASDF JF001 777PM Kishidajoined by support AC JF002 777 that also departed Munich'''
Greta would be proud so this is just a quick calculation of 25 flights from Munich to Madrid -since I'm sure I missed some and there are several that are further away as with Poland, Greece, Slovenia, Hungary so we'll just call it 25 flights at roughly 2.10 metric tons of CO2e per flight (Munich to Madrid) gives you: 52.5 metric tons of CO2e
#954
>>140834 Friday was, we believe, the biggest day yet for signups on TRUTH. Amazing numbers are happening, and quickly!
>>140835 INSANE Senator Elizabeth Warren Suggests Putting Planned Parenthood TENTS on Federal Land to Conduct Abortions in Banned States
>>140844 GMax sentence watch today
>>140849 In a recent BRICS meeting, Putin addressed the following—Russia will fulfill its obligations to supply energy and fertilizers, The sharp increase in inflation around the world is the result of the irresponsibility of G7 countries, not the operation in Ukraine.
>>140852 Planefag: G-7 and non G-7 to NATO wank-fest moving day ACs heading to Madrid
>>140856 Potato Force 1 and SAM46 already at Madrid
>>140859 Today’s Key Primaries: Today’s Key Primaries. Runoffs: Mississippi and South Carolina
>>140861 Planefag: Moar 'moving day' ACs to Madrid: Japanese JF001 Kishida to Madrid/Slovenian AF LSV101-Borut Pahor/SPAR87 NATO AC Ramstein-Stuttgart-Franfurt now to Madrid
>>140861 Japan PM Kishida: to extend additional $100 mln in humanitarian aid to Ukraine
>>140862 Planefag housekeepin' and another PAT flight-PAT63 USAF G5 arrived at Frankfurt-Weisbaden AB last night (CONUS time) for 45 minutes then went to Ramstein AFB where it is now
>>140864 Biden Faces New Border Furor After 48 Die in Texas Truck
>>140865 Case-Shiller: National House Price Index Increased 20.4% Year-over-year in April + current 30 yr fixed rate
>>140867 U.S. Consumer Confidence Drops To Lowest Level Since February 2021
>>140869 Ag Hit job -1.25% and three day June 23/24 & 27 total of $30.898B in COMEX "trades"
>>140873 Pf quick (rough avg) calculation of C02e for the G-7 to Madrid flights: 52.5 metric tone of Co2e
NYFRB Operations today: $2,258,973,000,000T for June 28,2022
The retard headline of the day comes from none other than the NYFRB President John Williams where all of the below is being done out of...Thanks a lot John you fuggen moran see cap#4
Federal Reserve president pushes back on recession fears: 'The economy is strong'
https://www.washingtonexaminer.com/policy/economy/fed-president-pushes-back-recession-fears
Yen is back up over 136 again...see cap #5 for current FOREX pricing with the Yen highlighted-and BIG battle going on it right now
A total of$2,258,973,000,000Tin overall transactions today and $56.607B moar than Monday-this Repo is for 1 day and uses 97 counter-parties . 24th day over the $2T mark overall.
Reverse Repo see cap #2 '''$2.213.784T and $57.842B moar than Monday==
https://www.newyorkfed.org/markets/desk-operations/reverse-repo
Mortgage Backed Securities (MBS)See Cap #3 and NO QT today and only ONE (1) operation today-still haz only done ). . $2.266B submitted vs. $484m accepted in one operation This settles August 18th. Lower on the submitted by $231m and lower on accepted side by $234m today.
These are 30-year Fannie/Freddie
FNCL 4.5 8/22 $424,000,000
FNCL 5 8/22 $295,000,000
https://www.newyorkfed.org/markets/desk-operations/ambs
Securities Lending OperationsSee Cap #4 $45.242B submitted and$44.705Baccepted'''
Lower on submitted by $185m today and the accepted side by $313m-as yesterday pinted out they "lower" the accepted amount by million but when it rises it's by billions.
Still werking that 2 year notehardCUSIP #91282CER8 same as one as and all last week This is what the system uses to send "messages" to the FOMC on what they want to do with Prime Rate-biggest at $3.828B and all of it taken but less of it than yesterday by $338m-exactly the same amount as yesterday. Second biggest amount is the 13 and 26 week bill CUSIP# 912796U64 at$3.462Band $346m moar of that today. Biggest still the 2 year note-the 'telegraph' to the FOMC. The third largest amount is a 6 month bill CUSIP#912796R27 at $2.640B and $149m moar on the 3rd largest amount. A total of$9.930Bdirected at 2 year curve and below with the 3 largest amounts and $137m larger than yesterday.
As mentioned last week the biggest amounts are targeting the shorter end plus we had a 2 year auction today see here
https://www.newyorkfed.org/markets/desk-operations/securities-lending
gibs me a minute
To break this down in an easy-to-understand way what these #'s represent is what is traded on the COMEX (Commodity Exchange, Inc)-where all commodity trades occur
What it is
New York Mercantile Exchange (NYMEX) is a commodity futures exchange owned and operated by CME Group of Chicago. The company's two principal divisions are the New York Mercantile Exchange and Commodity Exchange, Inc (COMEX), once separately owned exchanges. The New York Mercantile Exchange handles billions of dollars' worth of oil transactions, energy carriers, metals, and other commodities being bought and sold on the trading floor and the overnight electronic trading computer systems for future delivery. The prices quoted for transactions on the exchange are the basis for prices that people pay for various commodities throughout the world.
Very little trades take place on what is known as a trading floor-watch the movie "Trading Places" from 1983 for a great representation of how this system is abused and for how it used to be done-for the most part it is done via computers or what is known as High Frequency Trading (HFT) and not many humans have a role in this or almost all other exchanges now.
Trading Places
https://www.imdb.com/title/tt0086465/
That is the basic description of what it is..now what that graph and chart represent here: >>140869
How it works
If you go into a local coin shop the owner must have a way to have the most current price of Silvers 'value'..that is taken from this process.
Cap#3 on this post is the daily Spot Price of Silver-which is cap#1 in the prior post that is derived from the trades on the above mentioned COMEX-this is a paper based trading vehicle that is presented as the up-to-the minute value of Silver. The chart in Cap#1 is the daily amount of contracts that are traded on that exchange via the COMEX Silver Futures Index.
https://www.cmegroup.com/markets/metals/precious/silver.volume.options.html#optionProductId=458
If you go to that link you can use your mouse and hover over each of those bars and it will tell you how many contracts were traded on the date you choose. The given example in the prior post is the total of June 23-24 and 27 but we will use Monday for this example. Each one of those contracts represents 5,000 ozs of Silver..so if you take Mondays example of 85,751 you multiple that # by 5,000 to get the amount of Silver that is traded (and moar on that below) on that day. On Monday you had 428,755,000/ozs of Silver traded via those contracts. Take an avg price of $21 and you have a total of $900,385,500 of silver traded in one day (that is cap#1 of this post).
What this is NOT
The problem with this, and all other commodity trades, is the simple fact that these contracts are paper-based as in they DO NOT represent actual physical Silver being traded. There was NOT 428,755/ozs of ACTUAL Silver traded hereonly the contracts that represent it.It is a highly abused system and to give you a better example-the total amount of Silver mined in one year varies but not by much.
In 2021 is was estimated at 24,000 metric tons cap#2 in this post and there are 35273.96/ozs in ONE metric ton which gives you 8,467,190,400/ozs in total production for that year. Now if you take the total amount of contracts from the COMEX from May 13th to yesterday that is a total of 1,854,022 contracts X 5k per contract which gives you 9,270,110,000/ozs in 30 days or approximately 802,919,600 ozsmorethan the entire annual production of 2021.
If you set up an account you could go in and "trade" Silver by purchasing contracts (and becasue each one represents 5,000/ozs they are not cheap) so this is used by Silver Speculators, Buillion Dealers, and Hedge Funds for the most part.
https://www.cmegroup.com/markets/metals/precious/silver.volume.options.html#optionProductId=458
https://www.statista.com/statistics/253293/silver-production-volume-worldwide/
The bottom Line:The only real way you own Silver is to BUY it in Physical form-there are plenty of products in the financial system, such as ETFs (Exchange Traded Funds) that say they can be redeemed for physical silver..DO NOT BELIEVE IT..what you "own" with anything other than Physical Silver is a Promissory Note that "says" you can redeem it for the specified amount. Even those contracts mentioned above have a process to do that but very few of those ever do that-actually buy a contract and convert it into Physical Silver-the COMEX actually discourages people from doing that-they really want you to just trade it and NOT take delivery.
So if you want to own Silver got to a local coin shop or bullion dealer and BUY IT physically and once you have it DO NOT care what the price is as it is valued in paper un-backed Federal Reserve Notes-this is not an easy thing to do watching the daily price movements of it but less than 1% of the entire population actually owns physical metals so you are in a small "club" once you take the plunge. The above mentioned products (ETFs) were designed to steer normal people away from actually owning the real thing but make no mistake you do not not own it unless you have it in your hands. Also do not buy it and have someone else store it for you (there are plenty of places that offer it that way-DON"T DO IT) or put it in a safety deposit box at your bank.
How and where you store it is up to you to decide but do not do any of the above which is to have a third-party involved in controlling your Silver/Gold.
Take pepe's advice in cap #4
Good Luck
they just got $4b from the IMF
IMF board approves Argentina first review, unlocks $4 bln
The executive board of the International Monetary Fund on Friday completed the first review of its $44 billion Extended Fund Facility for Argentina, its managing director said.
The approval allows for the disbursement of about $4 billion. Kristalina Georgieva said on Twitter the approval marked the conclusion of an initial step under the program to support the country's "ongoing economic recovery and strengthen stability." A source familiar with the matter had previously confirmed the information to Reuters. In a statement, the IMF said that notwithstanding shocks such as inflation pressures and challenging fiscal and reserve
accumulation goals, Argentine authorities have met "all end-March 2022 quantitative targets and have made progress toward implementing the structural commitments under the program." It added that it maintained the end-year program objectives with some flexibility in the quarterly paths to accommodate those shocks. Kristalina Georgieva said on Twitter the approval marked the conclusion of an initial step under the program to support the country's "ongoing economic recovery and strengthen stability." The IMF announced on June 8 that it had reached a staff-level agreement on an updated macroeconomic framework with authorities in Argentina - the fund's biggest debtor. It said at the time that "all quantitative program targets" for the first quarter of the year had been met. On Tuesday, Argentina's government approved two payments to the IMF for some $2.75 billion.
https://www.reuters.com/world/americas/imf-executive-board-approves-first-review-argentina-program-source-2022-06-24/
you made yer choice already
ty
im gonna look around and then same
EWOK069 USAF KC-135 tanker up out of Marrakech, Morocco and this is probably the stand-by tanker for Potato since there is some awfully crowded airspace over central Spain-seems a bit far away at 800 miles or so but it's running the same trackin' pattern as a stand-by tanker would be doing
There is nuffin else out there
Visa deposits $600 million into litigation escrow account that functions like a share buyback
Visa Inc. V, -2.67% said Tuesday that its board of directors approved a deposit of $600 million into a litigation escrow account that the company previously set up in response to a years-old merchant lawsuit. The account is set up so that funding of the litigation escrow account dilutes the value of the company's bank-owned class B shares relative to the company's class A shares. As such, the move functions like a buyback of Visa's regular class A shares because the conversion rate of class B shares is reduced. The account was set up this way when Visa went public more than a decade ago after living most of its corporate life as a bank-owned cooperative. Visa has funded this account numerous times in the past and didn't immediately respond to MarketWatch's request for comment about why it was adding the incremental $600 million now. For more on Visa's class B shares, MarketWatch discussed the setup in depth following a 2018 funding of the litigation escrow account.
https://www.marketwatch.com/story/visa-deposits-600-million-into-litigation-escrow-account-that-functions-like-a-share-buyback-2022-06-28
from 2018
In looking at Visa’s financials, a deposit into the escrow account lowers the earnings number in the numerator as well as the number of shares outstanding in the denominator, when it comes to calculating earnings per share. That means Visa’s EPS will not reflect the fact that the company had this $600 million outflow during the quarter. While Visa’s income will be reduced by $600 million, the impact on EPS is eliminated because of the conversion feature of the company’s Class B shares. Chaney said that EPS might actually rise depending on how the rate is converted, but the practice is allowable under generally accepted accounting procedures (GAAP).
https://www.marketwatch.com/story/visa-has-taken-an-unusual-approach-to-its-preparation-for-merchant-suit-settlement-2018-07-11
If it functions as it suggests it is basically using it to buy back shares without having to announce a share buyback program-and since everyone is saying how "great this economy is" you wouldn't really want to have a credit card co. announcing a share buyback plan just as consumer confidence continues to erode and consumer credit is at all time high.
Even the real chief Fed Head (Jerry is just the errand boy) John Williams said "The economy is Strong" >>140879 Federal Reserve president pushes back on recession fears: 'The economy is strong'
Colombian AF FAC0001 737President Ivan Duque on this ACdeparted Lisbon after arriving on 0626 for an hour-dropped off some blow-then went to Porto
Returned to Lisbon today for 2h20minutes and now back to Bogota where it departed from on 0625
Duque urges successor to maintain Nato, US relationships
Lisbon, Jun 28 (EFE).- Colombia must maintain its strategic relationship with Nato and the United States, Colombian President Ivan Duque told Efe in an interview Tuesday, in which he said he was in favor of Sweden, Finland and Ukraine joining the Alliance.
https://www.laprensalatina.com/duque-urges-successor-to-maintain-nato-us-relationships/
EWOK069 USAF KC-135 tanker back to Marrakech
Looks like it was up over the last few days as JABBA88-cap #2 yesterday, YODA99 on 0626-cap#3 and then GRMPY88 on 0622, SALTY22 on 0621 and it has no activity going back to mid-May at all so it is likely those are Potato's mobile filling station as there is not anything else visible and those flights as SALTY and GRMPY could have been in preparation for G-7/NATO coverage which started with the aforementioned YODA99 flight on 0626-when Potato arrived at Munich
cause it's so slow?
GMax about it for major thing but I've been in/out and not paying attention
Yeah I feel that way a bit cause I've got work going on and been on the in/out normal Sat routine
Gone fer a bit at about 2pm yer time tomorrow but you usually break then...Dr appt
PAT63 USAF G5 departed Ramstein AFB NW
>>140781 pb PAT78 is still at RAF Northolt
Werking on a theory that when they "remove" JA from the UK they may "put him"-at West Point
It's just a theory as we had a pretty high-level G5 depart JBA go to West Point and then head over to Rzesow and then to Paris where it joined one of the C202 Coast Guard ACs (those have been speculated to be Navy Ops using the Coast Guard ACs that operate out of Reagan National) and most recently shadowed the Sec. of Defense on the recent Singapore Trip.
>>139772 SAM292 USAF G5 on approach for New York Stewart Airport (West Point Academy's Airport) from JBA depart
>>139927 SAM292 USAF G5 that departed NY Stewart Airport last night went to Rzesow Airport, Poland for 90 minutes and is now on ground at Paris-that C202 Coast AC arrived yesterday >>139865 lb
>>140212 SAM292 USAF G5 landed at JBA after it stopped at NY Stewart Airport (West Point) for 60 minutes where it left on Monday (june 20th) and it also stopped at Rzesow Airport on June 21
Just file this under wild-ass guess at the moment as the only real back-up I have is the high level G5 described above going to West Point's Airport (NY Stewart) on outbound and then back to it on it's inbound upon return to JBA
They are gonna have to 'put him' somewhere plus have to show him at some point so muh "wild-ass" guess is they do all the show and tell with the double and then 'put him' at West Point-it doesn't seem very logical but if they put him in a standard Prison situation that will be swarmed with people in protest and a gigantic shit-show. It's also a U.S. Mint location as well so very secure. They can control access into/out of that area pretty easily and just shut off the one major road in and out of there but there are many other places they could do that as well and be less disruptive...like I said a "wild-ass guess" at this point-but something made me think of that as a location and it is sticking in muh head for some reason as I'm sure you've had something that just doesn't make much sense stay with you for some reason.
yer discretion to grill 930 or not
Chinese AF 11155 Y-20 appears heading SW out of China northeast of Lahore, Pakiland and heading west now towards Afghaniland border
One of the two seen on Sunday night (CONUS time) >>140683 pb
Paki AF BURAQ306 G4 SW after Lahore departure
U.S. rate rises hit Japanese megabanks' finances hard
Unrealized losses on bonds total $12.5bn for the three top banks. Sharp rises in interest rates of overseas bonds, which represent drops in their price on the flip side, have posed challenges for Japanese megabanks.
Major Japanese banks' investment strategies came into question as they reported a combined total of 1.7 trillion yen ($12.5 billion) in unrealized losses on their foreign bond holdings and suffered losses on their sale as of March.
Previously, the country's top three megabanks incurred losses due to sharp rate rises in the fiscal year that ended in March 2017, during which Donald Trump was inaugurated as U.S. president, but the latest losses are 6.5 times that figure. While the banks' overall securities holdings still carry unrealized gains, the situation threatens their capital adequacy.
Securities companies have been receiving increased inquiries from overseas hedge funds. Their questions are specific: What are the recent levels of unrealized losses on foreign bonds for megabanks? Do they plan to book impairment losses? The value of bonds held by megabanks has fallen significantly, and market participants are waiting to see what measures they might take.
A megabank investment manager said this is "a tough year not seen in the past."
"I said they're storm clouds, they're big storm clouds here. It's a hurricane," JPMorgan Chase chief executive Jamie Dimon recently said, warning about inflation and rate rises.
Since around the middle of 2021, when sharp price rises began in the U.S., Japanese megabanks began preparing for rate hikes. The average life of the foreign bond holdings of both Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group early this March was longer than a year. The banks are believed to have dumped short-maturity U.S. bonds, which may inflict losses due to rate hikes, and replaced them with longer-maturity government bonds.
The combined unrealized losses on foreign bonds at the three megabanks increased to 1.7 trillion yen in March. Unrealized losses do not surface until the loss-bearing bonds are sold, but if the banks have little chance of recovering, they would be forced to book impairment losses. Currently, they have combined unrealized gains totaling some 6.4 trillion yen, maintaining an overall soundness.
The sharp rises in yields on longer-term U.S. bonds, including five- and 10-year issues, hit the banks unexpectedly. Yields on 10-year bonds rose more than 1.1 percentage points during March and April. It was the largest two-month rise since May 1985. The extent of loss increases for Mizuho Financial Group, which decided to reduce the balances of ultralong-term loans and mortgage-backed securities, is smaller than those of MUFG or SMFG.
Resona Holdings posted losses on bond sales totaling 55 billion yen in the three months to this March. In 2020, when the new coronavirus spread, the company adjusted its portfolio to be composed mainly of low-yield bonds, anticipating a long-term economic slump. Subsequently, the risk that procurement costs may exceed investment returns increased as prices and interest rates rose. On the other hand, none of the three megabanks has booked large amounts of losses on selling bonds to reduce unrealized losses. Still, high interest rates must be seen relative to borrowing costs. Japanese banks typically procure in the market the dollars they use to invest in foreign bonds. They typically use repurchase agreements, under which government bonds are offered as collateral for borrowing short-term funds. Borrowing rates on dollars have been on an uptrend driven by rate hikes. Higher yields are required to prevent investment from resulting in negative returns. Foreign bond investment, which used to be a precious revenue source, is at a crossroads.
What can be troublesome about securities investment is its relationship with capital adequacy regulations imposed by financial authorities. The "total of other securities" held for investment purposes by the three megabanks carries unrealized gains totaling over 5 trillion yen. The unrealized losses on foreign bonds, which form part of that, are more than offset by the impact of higher stock prices.
However, this account fell into unrealized loss in the fiscal year that ended in March 2009, immediately after the global financial crisis. By rule, the equity of a megabank, which operates internationally, decreases if its securities portfolio falls into unrealized loss.
The large unrealized losses on the megabanks' foreign bond holdings can be said to reflect an unstable situation that could, if the market falls into crisis, lead to a return of the situation immediately following the global financial crisis.
https://asia.nikkei.com/Business/Finance/U.S.-rate-rises-hit-Japanese-megabanks-finances-hard
Mizuho is a Primary Dealer with the NYFRB
#954
>>140834 Friday was, we believe, the biggest day yet for signups on TRUTH. Amazing numbers are happening, and quickly!
>>140835 INSANE Senator Elizabeth Warren Suggests Putting Planned Parenthood TENTS on Federal Land to Conduct Abortions in Banned States
>>140844 GMax sentence watch today
>>140849 In a recent BRICS meeting, Putin addressed the following—Russia will fulfill its obligations to supply energy and fertilizers, The sharp increase in inflation around the world is the result of the irresponsibility of G7 countries, not the operation in Ukraine.
>>140852 Planefag: G-7 and non G-7 to NATO wank-fest moving day ACs heading to Madrid
>>140856 Potato Force 1 and SAM46 already at Madrid
>>140859 Today’s Key Primaries: Today’s Key Primaries. Runoffs: Mississippi and South Carolina
>>140861 Planefag: Moar 'moving day' ACs to Madrid: Japanese JF001 Kishida to Madrid/Slovenian AF LSV101-Borut Pahor/SPAR87 NATO AC Ramstein-Stuttgart-Franfurt now to Madrid
>>140861 Japan PM Kishida: to extend additional $100 mln in humanitarian aid to Ukraine
>>140862 Planefag housekeepin' and another PAT flight-PAT63 USAF G5 arrived at Frankfurt-Weisbaden AB last night (CONUS time) for 45 minutes then went to Ramstein AFB where it is now
>>140864 Biden Faces New Border Furor After 48 Die in Texas Truck
>>140865 Case-Shiller: National House Price Index Increased 20.4% Year-over-year in April + current 30 yr fixed rate
>>140867 U.S. Consumer Confidence Drops To Lowest Level Since February 2021
>>140869, >>140894 Ag Hit job -1.25% and three day June 23/24 & 27 total of $30.898B in COMEX "trades" + What is COMEX how does it function and what does it represent: paper trading pricing for a physical asset
>>140873 Pf quick (rough avg) calculation of C02e for the G-7 to Madrid flights: 52.5 metric tone of Co2e
>>140875 WATCH LIVE: Jan. 6 House Committee Hosts Surprise Public Hearing to Detail New Evidence
>>140879 NYFRB Operations today: $2,258,973,000,000T for June 28,2022
>>140881, >>140885, >>140891 Ghislaine Maxwell sentenced to 20 years in prison for sex trafficking
>>140893 Signature ceremony with Türkiye🇹🇷,Finland 🇫🇮 & Sweden 🇸🇪, followed by NATO Secretary General
>>140897 U.S. Supreme Court reinstates Louisiana electoral map faulted for racial bias
>>140899, >>140903 Argentina has officially applied to become part of BRICS $4B from IMF on 0624
>>140906, >>140944 SAM332 USA G5 SW from Bangor ME ground stop-departed Stuttgart Int'l earlier today-SAM410 USAF G5 arrived at Teterboro Airport, NJ from JBA depart and back to JBA after 5 h20min on ground
>>140907 SPAR87 NATO G5 arrived at NB Rota after a ground stop at Madrid-Torrejon AB of about 45 minutes
>>140908 EWOK069 USAF KC-135 tanker up out of Marrakech, Morocco and this is probably the stand-by tanker for Potato since there is some awfully crowded airspace over central Spain-seems a bit far away at 800 miles or so but it's running the same trackin' pattern as a stand-by tanker would be doing'''
>>140909, >>140910 Inside plush ‘Disneyland’ prison with GARDENING course where Ghislaine Maxwell’s lawyer has requested she serve sentence
>>140912 SAM332 USAF G5 landed at Fort Knox, KY.....
>>140918, >>140920 Elmo ded-BBee and facepalm...CNN and fuggen puppets vax'd
>>140919 "Mule Votes" graphic-WI,PA,MI,GA
>>140921 Visa deposits $600 million into litigation escrow account that functions like a share buyback-doesn't have to announce a share buyback plan but effectively has one via this setup
>>140925 Colombian AF FAC0001 737 President Ivan Duque on this AC departed Lisbon after arriving on 0626 for an hour-dropped off some blow-then went to Porto/EWOK069 done and back to Marrakesh-had the Star Wars thang going on last three days
>>140930 PAT63 USAF G5 departed Ramstein AFB NW- PAT78 is still at RAF Northolt >>140781 pb + pf Theroy on where they may "take" JA upon the public show of extradition
>>140931 GOP taking primaries
>>140942 Chinese AF 11155 Y-20 appears heading SW out of China northeast of Lahore, Pakiland and heading west now towards Afghaniland border-Paki AF BURAQ306 G4 SW after Lahore departure
>>140945 U.S. rate rises hit Japanese megabanks' finances hard-Mizuho is a Primary Dealer with the NYFRB
think it's all there
ttyitm
good night muh fren
it seems to be waiting to devalue further-still hanging around 136.
Have not seen another Dollar roll so looks like it's steady for now they habs printing press too so this can go on for a long time.
At some point all those Reverse Repos will become repos-so an ass-ton of cash will come back out of the NYFRB and mebby that is the end game (ways off) where they try and buy everything up and hand it over to China-which I think is what they really want to do.