Week of February 5, 2012 thru February 11, 2012

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT

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06-Feb 1355/0855 St. Louis Federal Reserve Bank Pres. Charles Bullard speaks to the Union League Club of Chicago on "Inflation Targeting"

06-Feb 1715/1215 Dallas Federal Reserve Bank Pres.

TheFXSpot: Global Investors Cautious 'Believers;' Still Wary


NEW YORK, Feb 3 (MNI) - In the wake of Friday's solid U.S. jobs data and solid readings from ISM manufacturing and non-manufacturing releases also this week, global investors became cautious "believers" that the U.S. may well have finally turned a corner.

US Debt Offering, Auction Calendar for Tsy and Agency Issues


February 3

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S.

US's Boehner: Senate Dems Must 'Get Serious' Re Payroll Deal


--House Speaker Boehner: 'The Clock Is Ticking'
--Need 'Responsible, Bipartisan' Payroll Tax-Cut Deal

WASHINGTON (MNI) - House Speaker John Boehner admonished Senate Democrats Friday to "get serious" about negotiations on a "responsible, bipartisan" payroll tax cut extension agreement.

In a sharply worded statement, Boehner said he is troubled by reports that Senate Democrats are working on a back-up plan if the bipartisan talks falter.

"The clock is ticking.

US Congress Tries To Absorb CBO Report,Bernanke Bdgt Comments


--Congressional Budget Office Says $3T in 10 YR Deficits Are Possible
--But CBO Chief Elmendorf Shows Scenario For $11T in Cumulative Deficits
--Fed Chairman Bernanke Urges Long-Term Fiscal Discipline; Not Too Soon

WASHINGTON (MNI) - Those lawmakers interested in examining the complex choices facing U.S. fiscal policy have a lot of information to absorb as they reflect on a new report by the Congressional Budget Office this week as well testimony by Federal Reserve Board Chairman Ben Bernanke.

Bernanke, in a Thursday appearance before the House Budget Committee, said the nation's fiscal course is "clearly unsustainable" and long-term reforms need to be put into place.

"To achieve economic and financial stability, U.S.

BlogWatch:Trading Trolls Battle Data Monks;Monks Don't Listen


WASHINGTON (MNI) - High on a hill across from Capitol Hill -- actually the hills aren't that high -- the data monks toil while out and about the trading trolls take delight in mocking them, especially when the monks cook up some good numbers.

And so the Bureau of Labor Statistics, in its warren of offices next to the National Postal Museum, remains mostly oblivious to the tumult, at least in any official sense.

If you wander those halls on the special occasions outsiders are let in, you don't find BLS office monks watching CNBC. That's where Friday CNBC's sage of the CBOT, Rick Santelli, had another mini-rant, this time querying where 1.2 million people who used to be in the labor force suddenly disappeared to.

FXWRAP: Dlr Ends Mixed After Strong Employment Report


NEW YORK, Feb 3 (MNI) - The dollar was able to end the Friday session with just modest gains vs. the euro and the yen, though the greenback had scored stronger gains early in the day in the wake of a strong U.S. employment report.

Euro-dollar was changing hands at $1.3142 in afternoon dealings Friday, just slightly below its early $1.3160 level of the session, the euro in the middle of the day's $1.3067/1.3206 range of the U.S. session.

Dollar-yen meantime was changing hands at Y76.55 in afternoon dealings, the dollar noticeably above its early Y76.26 starting level of the session, the dollar seeing a Y76.17/74 range during U.S. hours.

Credit Default Swaps: IG17 All Time Tight, Risk-On Post NFP


CHICAGO, Feb 3 (MNI) - The benchmark index on U.S. investment grade Credit Default Swaps moved to an all time tight Friday amid the continued risk-on trade fueled by a favorable January non-farm payroll report.

Credit Default Swaps: IG17 All Time Tight, Risk-On Post NFP


CHICAGO, Feb 3 (MNI) - The benchmark index on U.S. investment grade Credit Default Swaps moved to an all time tight Friday amid the continued risk-on trade fueled by a favorable January non-farm payroll report.

The US IG17 was last tighter by 4.75 basis points to 94-94.50 bps, a new all time series tight.

The US IG17 has narrowed since December 19 when the index closed at 132 bps. Sources said the risk-on trade gained momentum after the start of the new year as balance sheets were freed up once 2011 ended.

Sources said a risk-on mood coupled with solid demand paper with a pulse aided the narrowing in the US IG17.

US Swaptions: Vol Firm On Post NFP Bear Steepener, Receivers


CHICAGO, Feb 3 (MNI) - While swap spreads experienced little real volatility Friday, over-the-counter swaption premiums were mostly higher on the back of a strong bear steepening in rates markets post January payrolls.