Yield Curve Control Is Happening

-

Come Back Mr Bond…YCC Is Here!

 

If Central Banks are not yet waving the white flag, it has been unfoiled. The list of policy-makers using some form of yield curve control (YCC) is getting longer by the day. We re-iterate that the recent market turmoil confirms the tight Global Liquidity backdrop. Markets may be near an inflection in liquidity, if not in policy rates? This year’s ‘get the Fed B/S down and the US$ up’ will surely reverse in 2023 into ‘get the US$ down and the Fed B/S up’. Policy-makers under-estimate the need for QE. The final bear phase is upon us! Mr Bond is back.

 

 

See our latest published research, Global View: Come Back Mr Bond…YCC Is Here! - September 2022

 

 

Comments

Post a Comment

Popular posts from this blog

Global Liquidity Latest: A Bigger Crash?!

-
Global Liquidity Latest: A Bigger Crash?! ·                 Central Banks are making a major error by hammering down too hard on the brake. World recession is inevitable   ·                 US 10-year Treasuries are worth buying on 3% yields, and given their prevailing yield cushion, high yield US corporates are not far off a 12-month break-even point     See our latest published research, Global Liquidity Latest – July 2022   IMPORTANT – Our email addresses are changing – emails from sender@liquidity.com will become sender@crossbordercapital.com from the 1st of July 2022. After this date emails to ANY email account ending in liquidity.com will NOT work. Please update your records before the 1st of July 2022. You may also receive a direct communication from your contact to this effect. Please feel free to contact us on info@crossbordercapital.com at any time about this change.
Read more

China and Emerging Market Liquidity December Update: China, The US Dollar and Emerging Markets

-
China and Emerging Market Liquidity Update: China, The US Dollar and Emerging Markets   Emerging Market Liquidity conditions improved noticeably in November 2023, according to the jump in our EMLI™ index to a reading of 55.1. This rise was underpinned by buoyant cross-border capital inflows from foreign investors (index 68.6); an impressive rebound in private sector liquidity generation (index 54.1), reflecting signs of firming commodity markets, and further signs of easing by regional Central Banks (index 63.7), noticeably China (index 72.1). This provides a solid base for prospective EM stock market gains in 2024.       See our latest published research, China and Emerging Market Latest GLI™ – December 2023   For further information, please contact us at research@crossbordercapital.com  
Read more