Both these news items, announced yesterday, but still need to be mentioned

  “The NY Fed announced that the repo operations today will be of an increased size with the o/n operation now $100bn (prev $75bn) and the term operation now $60bn (prev $30bn). Details of the o/n operation will be announced between 8:00–8:15AM ET and the overnight operation between 8:30–8:45AM ET today. The increase in size to around levels that the market was bidding after the operation early in the week received $92bn of bids for o/n and $62bn of bids for term. “Reuters

European Central Bank Executive Board and Governing Council Member Lautenschlaeger announcing her resignation, effective October 31 (after the next ECB meeting on October 24). No reason has been given, but Reuters writes the move is “likely to be seen as a further backlash against the latest stimulus measures.” She was one of the hawks so her resignation could open the door for a Dove to replace her., QE forever.

 Markets:

   Optimism  regarding Trade lifting Stocks, Spoos +6 handles Nasdaq  +10  ,European Bourses higher Mib +.8%  Stoxx 50 +.7%, Bonds bouncing a bit today after yesterday’s sell off  Bunds steady to lower.. 10 year yields sideways the last 3 days, repo issues, Auctions and upcoming Quarter keeping a lid on activity. Dollar little changed today, Euro Touched the 2019 lows for the third time this month but failed to trade below. A handful of Second tier Economic data on calendar today, markets likely to ignore them. The focus will be on the testimony of the Acting director of National Intelligence at 8:00, will he say anything that further pushes case for Trump impeachment. Oil, Gold, Copper all little changed,

Hard to place a theme on today’s trade as Both Stocks and bonds higher.

Calendar:

7:30 GDP last look at Q2

Heavy dose of Fed speak:

  • 8:30 Kaplan
  • 9:00 Bullard
  • 10:45 Clarida
  • 1:00 Kashkari
  • 3:30 Barkin

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