tyb
Here's A List Of All The Interventions Unveiled Overnight
German FinMin Scholz unleashes the REAL bazooka today though, in a shocking FISCAL “whatever it takes” moment: SCHOLZ SAYS POSSIBLE GERMANY WILL NEED TO TAKE ON ADDED DEBT; GERMANY WILL HAVE NO LIMIT ON CREDIT PROGRAM FOR COMPANIES; SCHOLZ SAYS GERMANY WILL SPEND BILLIONS TO CUSHION ECONOMY; *GERMANY PLANS TO SET UP SAFETY NET FOR VIRUS-HIT COMPANIES; ALTMAIER: RESOURCES FOR GERMANY'S STATE BANK TO RISE TO 500BN
Treas Sec Mnuchin and House Dems reached an agreement last night to move forward with legislation that would shore up the US public health response to COVID-19, while also blunting some of the economic impact (h/t Rob Dent)
Free COVID-19 testing, including for the uninsured
Paid emergency leave for workers (14 days paid sick leave, up to three months paid family/medical leave)
Enhanced unemployment insurance (increased access, waived requirements)
Increased food assistance
Increased federal funds for Medicaid
Yesterday’s Fed liquidity actions with the expansion of repo ops (beginning immed) and transition to “outright” QE (as previous “bill only” purchases expanded out across a range of maturities—thus, they are now explicitly buying Duration across nominal coupons, TIPS, FRNs and Bills) were introduced in an attempt to offset the obviously liquidity strains in the “frozen” Rates space, as evidenced by the moves in basis / off-the-runs this week
Further, given the deterioration of market conditions within Rates, I expect them to announce next week that they will effectively double the current monthly $notional purchases in an effort to soak-up some of this liquidity strain as OTR’s remain largely ‘bid-less’ and a large problem for both dealers and the leverage RV community alike
Lew’s new house-view is that the Fed will cut 100bps next wk, plus the aforementioned additional $50B of purchases on top of the current $60B plus the $20B from the MBS runoff reinvestments means a potential aggregate purchase of $130B / month from the Fed.
*PBoC cuts RRR for some banks this morning, releasing $79B of liquidity
*ECB’s Villeroy—“We can distance ourselves from the capital key to purchase more of some countries debt if required”; ECB obviously too grew their QE yesterday as well
*EU President Von Der Leyen unveiling emergency measures to tackle the economic fallout, including flexibility on budgetary and state aid rules; 37B Euro fund for coronavirus support
*Italy may spend up to E16B on first stimulus
*BoJ ups bond buying overnight in unannounced move (offering to buy $1.9B), while sources story says that QE interventions will grow (e.g. Commercial Paper, ETFs, Corp Bonds)
*RBA added $5.5B of liquidity through daily repo ops, largest since at least ‘13
*South Korea banning short-selling for 6m; Italian CONSOB bans short selling; Spain’s CNMV banned short sales on 69 stocks which fell over certain amounts yesterday; UK’s FCA temporarily prohibits short selling in certain instruments; French watchdog also investigating short selling ban;
*Norges Bank cuts rates 50bps to 1%, is prepared to ease further; cuts countercyclical buffer to 1% from 2.5% with immediate effect
*Riksbank lends 0.5T crowns to safeguard supply of credit while Ingves states can buy local, govt and corp bonds, can do currency intervention & cut rates if we think it’s needed
*BoC injecting billions of cash with repo ops and is set to expand the scope of bond buybacks to add mkt liquidity
https://www.zerohedge.com/markets/why-are-we-limit-heres-list-all-interventions-unveiled-overnight
AZAZ09O9 G5 VENUS35 737 SAM420 757 LOBO062 USMC C-560 VENUS61 G5 all out of JBA.
busy!
AZAZ09O9 USMC C-560 with two low alt passes at Newport News Int'l and now se
>garlic
good to see you have a sense of humor about it. Wut else can you do but that?
That gave me a good laugh. ty
don't have access to it. what drivel is he spouting?
ty for that. he does get a few things right so with you on that-I always see the media stuff way later.
none of them have touched the solvency issue…they won't it's too "complicated". Always argued that once people understand the terms used it's no longer complicated.
Statement Regarding Treasury Reserve Management and Reinvestment Purchases
March 13, 2020
To address temporary disruptions in the market for Treasury securities, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has updated the current monthly schedule of Treasury purchase operations.
Today, the Desk will conduct purchases in each of five maturity sectors below at the times indicated, subject to reasonable prices.
20 to 30 year sector at 10:30 – 10:45 am and 2:15 to 2:45 pm for around $4 billion each
7 to 20 year sector at 11:15 – 11:30 am for around $5 billion
4.5 to 7 year sector at 12:00 – 12:15 pm for around $8 billion
2.25 to 4.5 year sector at 12:45 – 1:00 pm for around $8 billion
0 to 2.25 year sector at 1:30 – 1:45 pm for around $8 billion
These purchases are intended to address highly unusual disruptions in the market for Treasury securities associated with the coronavirus outbreak. These purchases are part of the $80 billion of planned monthly purchases, including both $60 billion of reserve management purchases and $20 billion of reinvestments of principal payments received from the Federal Reserve’s holdings of agency debt and agency mortgage-backed securities. In these purchases, the Desk will include securities that are cheapest to deliver into active Treasury futures contracts as eligible securities for purchase. The Desk intends to further bring forward remaining purchases for this monthly calendar and adjust terms of operations as needed to foster smooth Treasury market functioning and efficient and effective policy implementation. A revised schedule will be posted.
https://www.newyorkfed.org/markets/opolicy/operating_policy_200313