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  • 2016-05-25 09:45


    By Sheila Mullan

    NEW YORK (MNI) - The overnight repo market saw the Treasury General Collateral rate tighten up a lot Wednesday, as various accounts sought to park money there ahead of a potential rate hike.

    The Treasury General Collateral rate opened around 0.35%, then tightened to 0.27%, then 0.25%, then 0.20% by 9:26 a.m. ET, said traders. Such tightness in turn tightened up agencies and Agency MBS too. "I'm surprised: it beats me," said one trader. "People are positioning themselves ahead of the Fed. If the Fed moves decisively" to tighten at June 23rd FOMC meeting, "you will see a break higher in Treasury yield and a break lower in equities," he added.

  • 2016-05-25 09:22


    --FOMC Can Move On Next Rate Hike At Meeting Without Press Conference

    WASHINGTON (MNI) - St. Louis Federal Reserve Bank President James Bullard said Wednesday he wouldn't prejudge the June meeting of the Federal Open Market Committee adding the move doesn't need to happen at a meeting with a press conference.

    "I don't think there's any reason to prejudge the June meeting," Bullard said in an interview with CNBC overnight. Bullard is in Asia this week, giving speeches in Beijing Monday and another one in Singapore Thursday. He is also speaking at the Bank of Korea International Conference Sunday in Seoul.

    Bullard's views of the upcoming June 14-15 meeting don't seem to have shifted much recently.

  • 2016-05-25 08:33


    --US April Trade in Goods $-57.5 Bln
    --BoJ Offls Still Fighting Low Services Prices
    --US Stock Futures Again Positive, 10-Yr Opens Weaker

    The following are top events and news reported Wednesday morning ET by MNI in the global financial system:

    * Greek Finance Minister Euclid Tsakalotos said Wednesday that the Eurogroup agreement for the conclusion of the first review, the disbursement of funding and the road-map for the restructuring of Greece's debt "is an important moment for Greece as investors will now have a clear picture of the country's course." Speaking at a press conference after the meeting, Tsakalotos said the disbursement of funds will help the state cover its own arrears, which could offset the austerity measures the parliament approved on Sunday.

  • 2016-05-25 08:17


    --April Permits Originally Reported +3.6% To 1.116 Mln Unit Rate

    WASHINGTON (MNI) - The number of U.S. building permits issued in April was revised up to an increase of up 4.9% to a 1.130 million unit annual rate, the Commerce Department's Bureau of the Census said Wednesday.

    Permits issued were originally reported up 3.6% to a 1.116 million unit rate.

  • 2016-05-25 07:00


    WASHINGTON (MNI) - The following is the text of the Mortgage Bankers Association's weekly Mortgage Application Survey release Wednesday:

    Mortgage applications increased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending May 20, 2016.

    The Market Composite Index, a measure of mortgage loan application volume, increased 2.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index increased 0.4 percent from the previous week.

  • 2016-05-25 05:37


    By David Barwick

    FRANKFURT (MNI) - The European Central Bank's monetary policy is reaching its limits, Governing Council member Klaas Knot said Wednesday.

    Speaking at the Spring Membership Meeting of the IIF in Madrid, Knot, who heads the Dutch National Bank, said it was "obvious that Europe needs to improve its lacklustre performance," which will require "a mix of instruments."

    "So far, monetary policy has been used extensively," he said.

  • 2016-05-25 05:30


    LONDON (MNI) - Standard & Poors, the international ratings agency, said the position of Sterling as a reserve currency, along with the associated benefits including the 'AAA' sovereign rating, are at risk if the UK votes against membership of the European Union on June 23.

    The full text of the S&P report follows.

    ----------------------------------------------------------------

    A decision by the United Kingdom to leave the EU in the June 23 referendum could jeopardize the British pound sterling's position as a reserve currency and the associated benefits to the 'AAA' credit rating, says S&P Global Ratings in a report published today ("Brexit Is A Risk To The Reserve Status Of Sterling").

    "Sovereigns controlling a reserve currency benefit from extensive external

  • 2016-05-25 03:26


    BEIJING (MNI) - The People's Bank of China set the yuan fixing against the U.S. dollar at 6.5693 on Wednesday, its weakest level since March 2011.

    With the dollar back on an appreciation course, a weak yuan central parity has not been rare in past weeks. On May 4, also a Wednesday, the PBOC set the yuan mid-point weaker by 0.59%, its biggest one-day drop since the one-off 1.86% devaluation move on August 11 last year.

    Traders are closely watching these PBOC daily fixings to confirm their worries that a new round of yuan weakness is ahead, probably until the end of the second quarter. Wednesday's mid-point has no doubt added a heavy chip to such bets.

    "The dollar index jumped 0.41% overnight. So today's 0.34% weakening of the yuan fixing is justified.

  • 2016-05-25 02:28


    --Adds Detail in Final Paragraph

    PARIS (MNI) - European Central Bank Governing Council member Francois Villeroy de Galhau said Wednesday the risks from a British vote to leave the European Union were high, both for London's role as a financial centre and for the Eurozone.

    In an interview with the Spanish daily El Pais, Villeroy de Galhau said that a "Leave" vote could create turbulence for British banks.

    "You cannot pretend to leave Europe and, in turn, believe that you can participate in a single financial market and that the role of the City will remain the same.

  • 2016-05-25 02:13


    By Jack Duffy

    PARIS (MNI) - European Central Bank Governing Council member Francois Villeroy de Galhau said Wednesday the risks from a British vote to leave the European Union were high, both for London's role as a financial centre and for the Eurozone.

    In an interview with the Spanish daily El Pais, Villeroy de Galhau said that a "Leave" vote could create turbulence for British banks.

    "You cannot pretend to leave Europe and, in turn, believe that you can participate in a single financial market and that the role of the City will remain the same.