Friday, November 16, 2018
Daily Writing
9:44 AM
US 10-year treasury notes have steadily ticked down throughout the week as investors seek a haven. Equities markets remain choppy on trade tensions between the US and China. Uncertainty regarding the outcome of UK-EU Brexit negotiations is also feeding into the broader uncertainty.
Brazilian 10-year government bond yields dipped lower on news that president-elect Jair Bolsonaro selected Santander’s Campos Neto to chair the Central Bank of Brazil.[1]
We are looking into a play to short European corporate debt. Some European corporate bonds currently yield less than US treasuries.[2] One way to short European corporate debt would be through shorting international corporate debt through the exchange-traded fund PICB. We will continue to look through this and provide updates in the future.
US Treasury yields continue to move lower coupled with weakness in the equities markets. The dollar fell and Treasuries rallied on Friday after the Fed’s newly appointed vice-chairman issued cautious comments that further reinforced the market’s view the US central bank would be in no hurry to step up its pace of interest rate rises.[3]
[1] https://www.bloomberg.com/news/articles/2018-11-15/brazil-s-campos-neto-to-take-over-central-bank-guedes-says
[2] https://seekingalpha.com/article/4121474-look-back-cringe-part-1-european-junk-bonds-yield-less-u-s-treasuries
[3] https://www.ft.com/content/dfa2dbc4-e9a9-11e8-885c-e64da4c0f981
Market Data
Resource Commodities
|
|
November 16, 2018 |
November 15, 2018 |
November 14, 2018 |
November 13, 2018 |
November 12, 2018 |
Gold Spot |
1214.50 |
1203.25 |
1201.90 |
1199.98 |
1209.40 |
Silver |
14.270 |
14.130 |
13.985 |
13.990 |
14.040 |
Platinum |
840.00 |
833.00 |
837.00 |
838.00 |
852.00 |
Copper |
2.75 |
2.78 |
2.76 |
2.72 |
2.69 |
Crude (WTI) |
57.82 |
56.53 |
56.43 |
57.13 |
60.74 |
Global 10-Year Government Bond Yields
|
|
November 16, 2018 |
November 15, 2018 |
November 14, 2018 |
November 13, 2018 |
November 12, 2018 |
USA |
3.08% |
3.09% |
3.15% |
3.15% |
3.18% |
UK |
1.42% |
NA |
NA |
NA |
NA |
Germany |
0.36% |
0.36% |
0.40% |
0.39% |
0.38% |
Brazil |
10.15% |
10.39% |
10.44% |
10.54% |
10.49% |
italy |
3.49% |
3.51% |
3.48% |
3.44% |
3.43% |
japan |
0.09% |
0.10% |
0.10% |
0.10% |
0.11% |
Major U.S. Indexes
|
|
November 16, 2018 |
November 15, 2018 |
November 14, 2018 |
November 13, 2018 |
November 12, 2018 |
VIX |
20.04 |
20.41 |
20.52 |
19.45 |
17.26 |
DOW |
252.42 |
250.61 |
253.88 |
253.21 |
259.59 |
S&P 500 |
271.74 |
268.76 |
274.18 |
273.06 |
277.24 |
NASDAQ |
7247.87 |
7129.04 |
7271.83 |
7259.66 |
7309.29 |
Currency Cross Rates
|
|
November 16, 2018 |
November 15, 2018 |
November 14, 2018 |
November 13, 2018 |
November 12, 2018 |
USD/JPY |
112.8300 |
113.2200 |
113.9600 |
113.8200 |
113.800 |
EUR/USD |
1.1415 |
1.1303 |
1.1303 |
1.1292 |
1.1268 |
AUD/USD |
0.7332 |
0.7272 |
0.7224 |
0.7219 |
0.7209 |
CHF/USD |
0.9996 |
0.9949 |
0.992 |
0.9929 |
0.996 |
USD/CNY |
6.936 |
6.938 |
6.9509 |
6.9545 |
6.9631 |
USD Index |
96.43 |
97.22 |
97.12 |
97.16 |
97.33 |
