morning 7-25

Doves everywhere

SYDNEY (Reuters) – Australia’s top central banker flagged low interest rates for an “extended period” on Thursday, driving bond yields to record lows, in a dovish signal that analysts say marks a major shift in the bank’s approach to guiding market expectations.

  • BFW 07/25 11:46 *ECB ORDERS REVIEW OF OPTIONS INCLUDING TIERED SYSTEM FOR RATES
    BFW 07/25 11:46 *ECB SEES RATES AT PRESENT OR LOWER LEVELS FOR AS LONG AS NEEDED
  • *ECB STAFF WILL EXAMINE OPTIONS FOR POTENTIAL NEW ASSET BUYING
  • The ECB all but confirms it will maintain a policy of negative interest rates, QE and asset purchases for years and years to come: “The Governing Council also underlined the need for a highly accommodative stance of monetary policy for a prolonged period of time.” @ReutersJamie
  • Turkey cut interest rates adding to the dovish narrative.

Qe or asset purchases forever doesn’t sound so farfetched now does it? Pavlovian response by markets  new QE= buy stocks and commodities  Copper ,oil ,platinum all trading higher  on day after a brief dip on the no cut announcement  Bunds( new al l(time low yield -.42%,BTPS ( Yields -10 bps) Buxl  yields (-4 Bps) all trading higher   10 year yields 2.01%  Gold +$8. Draghi Press conf at 7:30 he will be asked what this new Asset purchase program will look like so gyrations in European Fixed income are not over. Euro probing the 1.1100 handle a break results in a new 2019 low and 2-year low.

Earnings FB good, Tesla ugly down 12% Amazon and Goog after close today

Calendar:

7:30 Durable goods and Draghi press conference

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