Monday FX Interest Rate Monitor
February 8, 2010 by Seeking Alpha
Filed under Tips
Original Article from Seeking Alpha Dollar Currencies
Andrew Wilkinson submits:
Fixed income prices have eased on Monday after a little confusion at the outset. European stock markets were initially higher until around 6am ET when GM announced the recall of some of its Vibe model over required fixes for possible sticky accelerator pedals wiped out pre-market U.S. futures gains. Bond prices rose, but ahead of the U.S. opening are back towards their intraday lows. The week has all the hallmarks of being a crazy one for bond. The U.S. auctions $81 billion in debt equaling the most it’s ever sold in any given week. The Bank of England is likely to give inflation readings an upgrade in a report due this week. Yields on European debt have fallen to the lowest in a month, while a warning sign comes in the shape of a record number of investors expecting the euro to plunge further, which could be taken as a contrarian signal that the market is about as bearish as it can possibly get over concerns about the fiscal woes facing Greece, Portugal and Spain.
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