Wednesday, November 28, 2018
Daily Writing
9:15 AM
We are most interested in global government bond yields. Will we see a flight to safety toward U.S. Treasuries if we begin to see further weakness in corporate debt? Is there truth to the idea that artificially suppressed interest rates over the past ten years have incentivized corporations to borrow beyond their means? What is our position on interest rates? Are we bullish or bearish bonds? What is the bear and bull case for bonds? It’s worth noting that the Swiss 10 Year Note Generic Bid Yield is currently -0.12%.[1] How do negative yields work?
Although the consensus is that Chinese economic data is unreliable, what are the most commonly used indicators to determine the relative strength of the Chinese economy? Under more normal conditions, what economic indicators are typically used to determine the relative strength of a sovereign economy.
Yesterday (11/27/2018) volatility was subdued. The CBOE Put/Call Ratio started the day above 1.00 at 1.11 but fear dissipated from the market after morning trading. Today the VIX opened below 19.00 at 18.87 and is down 2.07% at the time of writing.
Significant decline in New Home Sales. New Home Sales in the United States decreased to 544K in October from 597K in September.[2]
Market Data
Resource Commodities
|
|
November 28, 2018 |
November 27, 2018 |
November 26, 2018 |
November 20, 2018 |
November 19, 2018 |
Gold Spot |
1214.60 |
1221.60 |
1222.80 |
1224.55 |
1222.70 |
Silver |
14.120 |
14.190 |
14.250 |
14.405 |
14.340 |
Gold/silver |
86.13 |
85.81 |
85.86 |
NA |
NA |
Platinum |
831.00 |
842.00 |
841.00 |
847.00 |
841.00 |
Copper |
2.75% |
2.73 |
2.72 |
2.80 |
2.80 |
Crude(WTI) |
51.23 |
51.58 |
51.91 |
56.23 |
55.66 |
Global Government Bond Yields
November 28, 2018 |
November 27, 2018 |
November 26, 2018 |
november 19, 2018 |
november 16, 2018 |
|
US 10 year |
3.06% |
3.07% |
3.07% |
3.04% |
3.08% |
US 30 Year |
3.33% |
3.32% |
3.38% |
3.29% |
NA |
UK |
1.37% |
1.39% |
1.41% |
1.39% |
1.42% |
Germany |
0.35% |
0.35% |
0.36% |
0.35% |
0.36% |
Brazil |
10.08% |
10.10% |
9.97% |
10.10% |
10.15% |
Italy |
3.26% |
3.25% |
3.25% |
3.60% |
3.49% |
Japan |
0.09% |
0.08% |
0.08% |
0.09% |
0.09% |
Major U.S. Indexes
November 28, 2018 |
November 27, 2018 |
November 26, 2018 |
November 20, 2018 |
November 19, 2018 |
|
VIX |
18.87 |
19.41 |
20.78 |
20.76 |
18.78 |
DOW |
248.33 |
246.40 |
243.64 |
250.17 |
254.13 |
S&P 500 |
269.61 |
265.76 |
265.80 |
269.10 |
273.73 |
NASDAQ |
7120.56 |
7081.85 |
7051.86 |
NA |
7247.87 |
EM USD |
1048.40 |
NA |
NA |
NA |
NA |
Currency Cross Rates
November 28, 2018 |
November 27, 2018 |
November 26, 2018 |
November 20, 2018 |
November 19, 2018 |
|
USD/JPY |
113.6300 |
113.6300 |
113.5700 |
NA |
112.8600 |
EUR/USD |
1.1367 |
1.1326 |
1.1340 |
NA |
1.1427 |
AUD/USD |
0.7304 |
0.7242 |
0.7233 |
NA |
0.7289 |
USD/MXN |
20.2442 |
20.623 |
20.399 |
NA |
NA |
CHF/USD |
1.0063 |
1.00187 |
1.0012 |
NA |
1.0033 |
USD/CNY |
6.9538 |
6.9486 |
6.9396 |
NA |
6.9427 |
USD Index |
96.84 |
97.15 |
96.98 |
NA |
96.39 |
[1] https://www.bloomberg.com/markets/rates-bonds
[2] https://tradingeconomics.com/united-states/new-home-sales
