The Chart From FT :
The Fed is All in :
The #Fed announced Monday unlimited #QE and several new lending programs to shore up the US economy, which is estimated to post an unprecedented contraction in Q2.
Fed will buy $75 B of treasuries and $50 of MBS every day this week! The bazooka has been fired
From (Bloomberg) — A crisis in credit markets deepened on Sunday as a cluster of funds that own mortgage bonds sought to sell
billions in assets to meet investor redemptions, sparking pleas
for government intervention.
The sales included at least $1.25 billion of securities being
listed by the AlphaCentric Income Opportunities Fund on Sunday,
according to people with knowledge of the sales. It sought
buyers for a swath of bonds backed primarily by private-label
mortgages as it sought to raise cash, said the people, who
asked not to be identified discussing the private offerings.
The fund plunged 17% on Friday, bringing its total decline for
Risk Was Down on day until fed announcement and then Risk Was On! Nasdaq almost touched limit up, Spoos rallied almost 200 handles of lows and European stocks turned positive and then some. Biggest winner is Dollar which is off some 100 ticks from highs. Treasury Complex rallied as the Invisible hand of The Fed should limit downside in bonds.
Still no Fiscal Deal as Dems and Republicans dig in for battle. Mnuchin said both sides are really close to deal, next scheduled gathering is at 11:00 today but at any time we could see comments out of Congress indicating progress towards a deal. Markets need to see a deal reached sooner rather then later Fed has done it Job it is up to Congress to do theirs’s.
Plenty of talk Of Deflation as CRB Commodity index touched lowest since 2009 it going to be an Ugly next few months for world economy as the Forecast of GDP and Jobless claims worldwide paint a dire picture of things to come.
Rand Paul tested positive for Covid-19 , Merkel being Quarantined as well as total cases worldwide crosses 250K and Deaths surpass 15K