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☆ Fed reverse repos fall under $1 trillion for first time since August 2021
▼ + stars: | 2023-11-09 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

Cash from money market funds and other eligible firms flowing into the Fed's reverse repo facility stood at $993.3 billion on Thursday, which was the first time flows fell under the $1 trillion mark since Aug. 10, 2021. Until fairly recently, Fed efforts to pull liquidity out has had only a modest impact on the reverse repo inflows, which had held above $2 trillion per day until mid-June. J.P. Morgan economists said Thursday that reverse repo balances "should decline further" given what's happening with Treasury debt offerings. The accelerating decline of the reverse repo facility has fueled questions about how far the Fed has left to go on shrinking the size of its balance sheet. They project reverse repo levels will stand at $700 billion at that point.

Persons: Cash, Morgan, Michael S, Daniel Wallis, Andrea Ricci Organizations: Fed, Thomson

A BNY Mellon sign is seen on their headquarters in New York's financial district, January 19, 2011. "We're in a period when the Treasury market needs to be relied upon for its safety and liquidity," Nate Wuerffel, head of market structure at BNY Mellon, said in an interview. "And if on top of that you're trying to implement very rapidly a fundamental reassembly of the Treasury market, that's when you run the risk of having market functioning deteriorate." Liquidity crunches in recent years have raised regulatory concerns about the Treasury market's ability to function during times of stress. "Central clearing will strengthen the market’s core attributes of safety and liquidity in times of stress.

Persons: Brendan McDermid, BNY Mellon, Treasuries, Nate Wuerffel, Wuerffel, Davide Barbuscia, Laura Matthews, Richard Chang, Sam Holmes Organizations: REUTERS, Companies Bank of New York Mellon, U.S . Securities, Exchange Commission, Treasury, SEC, BNY, Federal Reserve, Federal, Thomson Locations: New

China's foreign ministry said on Friday the lender is striving to minimise risk impact and losses after the attack. "We don't often see a bank this large get hit with this disruptive of a ransomware attack," said Allan Liska, a ransomware expert at the cybersecurity firm Recorded Future. TRADES CLEAREDICBC said it had successfully cleared Treasury trades executed on Wednesday and repurchase agreements (repo) financing trades done on Thursday. Some market participants said trades going through ICBC were not settled due to the attack and affected market liquidity. The Treasury market appeared to be functioning normally on Thursday, according to LSEG data.

Persons: Kim Kyung, ICBC, Wang Wenbin, Wang, Lockbit, Allan Liska, Scott Skrym, Michael Gladchun, Loomis Sayles, SIFMA, Urvi, Pete Schroder, Gertrude Chavez, Davide Barbuscia, Carolina Mandl, Paritosh Bansal, Joe Cash, Stephen Coates, Tomasz Janowski Organizations: Commercial Bank of China Ltd, REUTERS, Industrial, Commercial Bank of China, Commercial Bank of China's, U.S . Treasury, ICBC Financial Services, Cybersecurity, Infrastructure Security Agency, Boeing, U.S . Treasury Department, Treasury, Securities, Financial Times, U.S . Securities Industry, Financial Markets Association, Thomson Locations: Beijing, China, U.S, Bengaluru, Washington, Carolina

A BNY Mellon sign is seen on their headquarters in New York's financial district, January 19, 2011. "We're in a period when the Treasury market needs to be relied upon for its safety and liquidity," Nate Wuerffel, head of market structure at BNY Mellon, said in an interview. "And if on top of that you're trying to implement very rapidly a fundamental reassembly of the Treasury market, that's when you run the risk of having market functioning deteriorate." Notably, in March 2020 the market seized up as pandemic fears gripped investors, prompting the Federal Reserve to buy Treasuries to support the market. "An extended implementation timeline in the final rule could substantially lower the risk that the transition itself could worsen market functioning," Wuerffel said in a note on Wednesday.

Persons: Brendan McDermid, BNY Mellon, Treasuries, Nate Wuerffel, Wuerffel, Davide Barbuscia, Laura Matthews, Richard Chang Organizations: REUTERS, Companies Bank of New York Mellon, U.S . Securities, Exchange Commission, Treasury, SEC, BNY, Federal Reserve, Federal, Thomson Locations: New

☆ Europe should brace for U.S. Treasury clearing rules, says industry body
▼ + stars: | 2023-11-07 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsLONDON, Nov 7 (Reuters) - Europe has nowhere to hide from U.S. plans to mandate clearing of U.S. Treasuries transactions that will need to be carefully introduced over time, a global derivatives industry body said on Tuesday. A clearing house is backed by a default fund, ensuring that a transaction is completed even if one side of a transaction goes bust. Regulators began mandating the use of clearing more widely in derivatives markets after the global financial crisis in 2008 to improve stability and transparency. "It's something that you need to look at carefully and at this stage I think we still have more questions than answers as to how the actual process of clearing Treasury cash and Treasury repo will play out," Litvack said. Much will hinge on the details in the final rules that determine who will be within scope, O'Malia said.

Persons: Andrew Kelly, It's, Eric Litvack, Litvack, Scott O'Malia, O'Malia, Huw Jones, Chizu Organizations: U.S . Securities, Exchange Commission, Washington , D.C, REUTERS, Regulators, International, Association, Financial, Thomson Locations: Washington ,, Europe, U.S, Treasuries, United States, repos

☆ Exclusive: China's clashing priorities behind rare money market distress
▼ + stars: | 2023-11-06 | by ( ) www.reuters.com time to read: +7 min

"Banks were grudging in lending, leaving non-banks asking each other for money in afternoon trade," he said. The reasons for the spike in interest rates and the ensuing market chaos are detailed here for the first time. They affect foreign exchange movements since the markets are the major avenue for the supply of money. The money market operator CFETS told traders to keep a 5% ceiling on repo transactions and said anyone involved in high-rate deals closed on Oct. 31 would need to explain themselves to regulators, according to sources who received the notice. "If the pattern of money supply and liquidity provision remains unchanged, the whole system remains fragile.

Persons: Xia Chun, Banks, outflows, CFETS, Tom Westbrook, Vidya Ranganathan, Raju Gopalakrishnan Organizations: People's Bank of China, China Foreign Exchange Trade, Yintech Investment Holdings, Reuters, China Everbright Bank, Co, China Central Depository, Shanghai Clearing House, Shanghai, Thomson Locations: SHANGHAI, SINGAPORE, Beijing, Shanghai, China

The latest Commodity Futures Trading Commission (CFTC) figures show that speculators, especially leveraged funds, ramped up their short Treasuries positions in the week ending Oct. 31, most notably at the short end of the curve. That is significantly larger than the peak combined net short position from 2019 of just over 4 million contracts, boosted by fresh record short positions in the two- and five-year space. In October leveraged funds increased their net short position in two-year futures by 242,000 contracts to 1.6 million contracts, and by 193,000 contracts in five-year futures to 1.93 million. They only grew their net short position in 10-year futures by 10,000 contracts, however. But funds play Treasuries futures for other reasons, like relative value trades, and this year, the basis trade.

Persons: Brendan McDermid, Javier Corominas, Treasuries, Jerome Powell, Jamie McGeever, Miral Fahmy, Jonathan Oatis Organizations: New York Stock Exchange, REUTERS, Rights, Futures Trading Commission, Regulators, Reuters, Oxford Economics, Treasury, Citi's, Thomson Locations: New York City, U.S, Rights ORLANDO , Florida, Citi's U.S

☆ JPMorgan's Dimon warns the Fed's inflation war will spook markets - and flags a raft of threats to the US economy
▼ + stars: | 2023-11-02 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Jamie Dimon expects the Federal Reserve's war on inflation to shake markets at some point. Dimon warns overseas conflicts are a key concern and could hit the American economy. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementAdvertisementInvestors should prepare for turmoil as the Federal Reserve forges ahead in fighting inflation, Jamie Dimon says. "It'll have an effect on the economy, and it may determine whether the economy goes to hard landing or soft landing," Dimon said.

Persons: Jamie Dimon, Dimon, —, there's hasn't, Warren Buffett Organizations: Service, Federal Reserve, JPMorgan, Yahoo Finance, Reserve, First Republic Locations: Ukraine, Israel, Europe, China

☆ China rate scare reminds watchdogs of hidden risks
▼ + stars: | 2023-11-01 | by ( Chan Ka Sing | ) www.reuters.com time to read: +3 min

Overnight borrowing rates for some Chinese financial institutions spiked to 50% on Tuesday, according to official interbank data, far in excess of the average rate of roughly 3.6%. In 2012, a national audit confirmed that local governments had amassed up to 10 trillion yuan in debts. Those have since swelled to 92 trillion yuan, per Reuters. The latest liquidity squeeze is a reminder that short-term dangers will complicate any attempts at more drastic surgery on China’s financial system. CONTEXT NEWSOvernight borrowing costs for some Chinese financial institutions jumped to as high as 50% on Oct. 31.

Persons: Xi Jinping’s, Xi Jinping, Li Qiang, Peter Thal Larsen, Thomas Shum Organizations: Reuters, Traders, People’s Bank of, Financial Work, Central Financial Work Conference, Xinhua News Agency, Thomson Locations: HONG KONG, People’s Bank of China, Beijing

☆ Fed's Powell says balance sheet rundown will proceed without change for now
▼ + stars: | 2023-11-01 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

Federal Reserve Board Chair Jerome Powell answers a question at a press conference following a closed two-day meeting of the Federal Open Market Committee on interest rate policy at the Federal Reserve in Washington, U.S., November 1, 2023. REUTERS/Kevin Lamarque Acquire Licensing RightsNEW YORK, Nov 1 (Reuters) - Federal Reserve Chair Jerome Powell said on Wednesday that he sees no reason to change the current drawdown of the central bank's still-massive balance sheet. The rate-setting Federal Open Market Committee "is not considering changing the pace of balance sheet runoff. While shrinking Fed holdings may have a small impact on real world borrowing costs, "I think it’s hard to make a case that reserves are even close to scarce at this point." Reuters GraphicsFed officials have said repeatedly that the balance sheet drawdown effort complements rate rises and runs in the background.

Persons: Jerome Powell, Kevin Lamarque, Powell, it's, Loretta Mester, Michael S, Andrea Ricci Organizations: Federal, Committee, Federal Reserve, REUTERS, Fed, Reuters Graphics Reuters, Reuters Graphics Fed, Reuters Graphics, Cleveland Fed, Thomson Locations: Washington , U.S

☆ Yen languishes as focus turns to Fed
▼ + stars: | 2023-11-01 | by ( ) www.cnbc.com time to read: +3 min

Against the dollar, the yen fell about 1.7% overnight, touching a low of 151.74 — a whisker from the 151.94 level that prompted intervention a year ago. In the U.S. data showed wages and salaries rose solidly last quarter and while consumer confidence ebbed, it fell far less than markets had expected. The euro declined 0.4% on the dollar overnight and nursed losses at $1.0579. China's Caixin PMI data will be in focus later on Wednesday, ahead of U.S. manufacturing and private payrolls figures — before the Fed meeting. U.S. yields rose in early Asia trade, while Japanese yields fell slightly on thin volumes, leaving the spread between benchmark 10-year rates at 398 bps.

Persons: Alan Ruskin, Sterling, James Malcolm, 10bp Organizations: Resona Bank, U.S, Federal Reserve, U.S . Treasury, New Zealand, The Bank of, Deutsche Bank, UBS Locations: Tokyo, Japan, Asia, The, The Bank of Japan, U.S, London

☆ Some Chinese institutions borrow at 50% rate as liquidity squeezed
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

The highest overnight rate for pledged repo - a short-term financing business - hit 50% on Tuesday, according to official interbank data, although the average rate remains modest at roughly 3.6%. Two-day repo rates jumped to as high as 30%, and the highest rate for seven-day repos was 12%. Several traders at small lenders were still seeking to borrow money in later afternoon trading when contacted by Reuters. The brokerage attributed the cash shortage to a "record supply" of government bonds, as well as restricted channels for banks to borrow money. The average seven-day repo rate - a widely watched indictor of short-term borrowing costs in China - remained modest at 2.0765% on Tuesday, meaning many institutions can still borrow money at relatively low rates.

Persons: Thomas White, repos, Fan, Ming Ming, Ed Osmond, Kirsten Donovan Organizations: REUTERS, Rights, Guolian Securities, Reuters, Caitong Securities, Citic Securities, Shanghai, Thomson Locations: China

☆ Fed's reverse repo facility drawdown looms large in balance sheet debate
▼ + stars: | 2023-10-31 | by ( Michael S. Derby | ) www.reuters.com time to read: +6 min

Inflows have dropped sharply in recent months to around $1 trillion in the face of the Fed's aggressive policy tightening underway since last year. Fed officials, for their part, have said repeatedly they’ve got a lot of room to cut their holdings of Treasuries and mortgage-backed securities, a process that complements Fed rate increases. So far, reverse repos have “come down very smoothly,” Lorie Logan, president of the Dallas Fed said earlier this month. In his view, if reverse repos stopped contracting that could become a meaningful sign liquidity levels were getting tight enough for the Fed to change gears. "We still have a very large balance sheet" so the balance sheet cuts can likely continue over the next year and half to two years, she said, adding when it comes to getting to the finish line, "it's going to take a while."

Persons: they’ve, ” Lorie Logan, Logan, “ I’ve, Wells Fargo, Roberto Perli, Lou Crandall, Wrightson ICAP, Crandall reckons, Loretta Mester, Michael S, Dan Burns, Andrea Ricci Organizations: Fed, Dallas Fed, New York Fed, Reuters Graphics Reuters, Cleveland Fed, Thomson Locations: Treasuries, Wells

☆ In the Market: Treasury market braces for seismic SEC rule
▼ + stars: | 2023-10-30 | by ( Paritosh Bansal | Thomson Reuters | Paritosh Oversees The Work Of More Than Journalists Across The Globe Who Write About Finance | ) www.reuters.com time to read: +6 min

SIFMA, which has lobbied the SEC, expects the final rule next month, ahead of a Treasury market conference on Nov. 16. The SEC rule would be the most significant regulation so far to come out of that review. There is broad consensus on the need for Treasury market reform, including the benefits of central clearing -- even among the industry sources interviewed for this article. "It is going to improve financing and reduce the risks for turmoil in the U.S. Treasury market," said Yiming Ma, an associate professor at Columbia Business School. The SEC rule would force the banks to move that to central clearing.

Persons: Andrew Kelly, JPMorgan Chase, ”, Rob Toomey, SIFMA's, Gary Gensler, Banks, Ma, SIFMA, Toomey, Paritosh Bansal, Anna Driver Organizations: U.S . Securities, Exchange Commission, Washington , D.C, REUTERS, Treasury, SEC, JPMorgan, Bank of New York Mellon, Federal Reserve, U.S . Treasury, Columbia Business School, Depository Trust, Clearing Corp, Thomson Locations: Washington ,, U.S

Reuters Image Acquire Licensing RightsAnd that is reflected in the return of the "term premium," the amorphous amount of compensation investors demand for buying long-dated bonds instead of rolling over bills. A San Francisco Fed model estimates that the term premium on the 10-year Treasury bond has risen around 100 basis points since July. Reuters Image Acquire Licensing RightsAnalysts at Morgan Stanley reckon the term premium and debt sustainability worries could prompt a rethink of the bill-coupon supply balance. Bill supply around these levels would be well down on net issuance of just over $1.6 trillion in fiscal year 2023. Reuters Image Acquire Licensing RightsReuters Image Acquire Licensing RightsIn an ideal world, Treasury would not choose to rely on such short-term funding needs.

Persons: Kevin Lamarque, Morgan Stanley, Bill, Committee's, Jamie McGeever, Marguerita Choy Organizations: Department of, U.S . Treasury, REUTERS, Rights, U.S, Treasury, San, San Francisco Fed, New York Fed, Bank of America, TD Securities, Bills, Reuters, Securities, Thomson Locations: Washington , U.S, Rights ORLANDO , Florida, San Francisco

A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. The bank's policy committee repeated it is ready to raise rates further as needed to curb inflation, which climbed to an annual rate of 61.53% in September and is expected to rise into next year. It has weakened some 70% in two years, largely due to President Tayyip Erdogan's long-standing opposition to high rates and influence over the central bank. Erdogan chose former Wall Street banker Hafize Gaye Erkan as central bank chief after his May re-election. She has led a policy U-turn to relieve an economy strained by depleted FX reserves and surging inflation expectations.

Persons: Cagla, Tayyip Erdogan's, Erdogan, Hafize Gaye Erkan, Daren Butler, Jonathan Spicer Organizations: Turkey's Central, REUTERS, Rights, Wall Street, Thomson Locations: Ankara, Turkey, Rights ISTANBUL

☆ India's festival season to bring some cheer to economy, say economists
▼ + stars: | 2023-10-26 | by ( Milounee Purohit | ) www.reuters.com time to read: +3 min

Nearly 75% of economists, 25 of 33, said spending during this year's festival season, which lasts from October through December, will be higher compared to last year. Among those, 21 said slightly higher and four said significantly higher. "From a year-on-year growth rate perspective, it may not be a substantial upside so to speak." Economists generally agree India needs an even higher growth rate to generate enough jobs for millions of young people who enter the workforce every year. When asked what was India's potential economic growth rate over the next 2-3 years, economists returned a median range of 6.0%-7.0%.

Persons: Anushree, Dhiraj Nim, Alexandra Hermann, Milounee Purohit, Anant Chandak, Susobhan Sarkar, Veronica Khongwir, Hari Kishan, Ross Finley, Sharon Singleton Organizations: REUTERS, Rights, Reuters, Reserve Bank of, ANZ Research, Oxford Economics, Thomson Locations: Delhi, India, Reserve Bank of India

Savings accounts are low interest rate-bearing deposits offered by Indian banks, forming a third of their total deposits. Public sector banks offer interest rates between 2.70% to 4% on savings deposits, while large private banks offer rates between 3% to 4.50%. Savings deposits rate of banks vs RBI's repo rateThe RBI has been nudging banks at meetings to raise savings deposit rates and may need to push them again if required, the same source said. The RBI said in its monetary policy report that while the increase in term deposit rates in the current tightening cycle has exceeded that in lending rates, savings deposit rates have remained almost unchanged. Yes Bank (YESB.NS), Kotak Mahindra Bank (KTKM.NS) and IndusInd Bank (INBK.NS) are among lenders that have recently said they have no plans to raise savings deposit rates.

Persons: Anushree, Siddhi Nayak, Swati Bhat, Nivedita Organizations: Reserve Bank of India, REUTERS, Rights, Savings, Reuters, Yes Bank, Kotak Mahindra Bank, IndusInd Bank, Siddhi, Thomson Locations: New Delhi, India, Rights MUMBAI

Speaking at this week's global finance meeting in Riyadh, HSBC boss Noel Quinn warned of a potential "tipping point on fiscal deficits" for a number of countries across the world. And some analysts fear the uncertainty of next year's funding crush is filtering out the steepening yield curve via the term premium. Term premium at highest in 8 yearsReuters GraphicsCBO long-term US debt and deficit projections'DOOM LOOP'? That's spooky enough, until you start to factor in the recent yield spike and or a return of the term premium to 60-year averages of 150 bp. Tipping point or not, there's a danger the market is starting crystallise the problem it fears most.

Persons: Sukree, Noel Quinn, it's, that's, Stephen Jen, Jen, Goldman Sachs, Jeremy Hunt, Mike Dolan Organizations: HSBC, New York Fed, Federal Reserve, Fed, JPMorgan, Treasury, CBO, Moody's, Reuters Graphics Reuters, Reuters, Thomson Locations: Kasikornbank, Bangkok, Riyadh, U.S, Washington, Europe, Italy

ORLANDO, Florida, Oct 22 (Reuters) - Leveraged funds trading U.S. Treasuries futures have increased their record net short position across the curve, which will do little to soothe growing concerns among regulators about the potential financial stability risks these bets pose. That is significantly larger than the peak combined net short position from 2019 of just over 4 million contracts. That's a whisker from the two-year record net short of 1.558 million contracts in 2019, and a fresh record five-year net short. A short position is essentially a wager an asset's price will fall, and a long position is a bet it will rise. But funds play Treasuries futures for other reasons, like relative value trades, and this year, the basis trade.

Persons: Jamie McGeever, Miral Organizations: Bank for International, Futures Trading Commission, U.S, Treasury, Reuters, Thomson Locations: ORLANDO, Florida, U.S

☆ Fed has 'some time' to see data before deciding next rate move, says Logan
▼ + stars: | 2023-10-20 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

Logan acknowledged progress in lowering inflation while still being unsure that price pressures are ebbing to the Fed's 2% target. She said a still-strong job market may need to weaken further to help the Fed achieve its inflation goals. "My focus is on price stability and what further tightening may be needed to achieve our mandate," Logan said. If tighter financial conditions are "persistent that could mitigate some of the need for further increases," Logan said. In her remarks Logan also took stock of the outlook for the Fed's balance sheet contraction policy.

Persons: Lorie Logan, Ann Saphir, Logan, Jerome Powell, Michael S, Sandra Maler, Leslie Adler Organizations: Reserve Bank, Dallas, Kansas City, REUTERS, Federal Reserve Bank, New York University, New, Thomson Locations: Kansas, Jackson Hole , Wyoming, U.S, New York

☆ U.S. 10-year Treasury yields hits 5% for first time since 2007
▼ + stars: | 2023-10-19 | by ( Reuters Staff | ) www.reuters.com time to read: +4 min

LONDON (Reuters) - The U.S. 10-year Treasury yield briefly reached 5% for the first time since 2007, marking a fresh milestone in a relentless push higher for government borrowing costs. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. REUTERS/Brendan McDermidFurther signs of resilience in the U.S. economy help explain the latest sell off in Treasuries, as traders have unwound bets the U.S. Federal Reserve would soon start to lower interest rates. He highlighted what everyone has seen with the strong economic growth data and the retail sales figure that came out. Just like how the market forced the Fed to stop quantitative tightening in 2019, it might be forcing the Fed to rethink QT today.

Persons: Brendan McDermid, Jerome Powell, MICHAEL SCHULMAN, EL, ”, NOAH, ” BRIAN JACOBSEN, MENOMONEE, QUINCY KROSBY, Powell Organizations: Treasury, New York Stock Exchange, REUTERS, U.S . Federal, Fed, NORTH Locations: New York City, U.S, Treasuries, EL SEGUNDO, CALIFORNIA, CHARLOTTE, NC, WISCONSIN, NORTH CAROLINA, Ukraine, Russia

☆ Man who tricked Tesla into giving him 5 free cars and set one on fire on a frozen lake gets 4-year prison sentence
▼ + stars: | 2023-10-13 | by ( Grace Kay | ) www.businessinsider.com time to read: +3 min

A 34-year-old man tricked Tesla into giving him five EVs without full payment, the US DOJ said. The man, Michael Gonzalez, resold a Model 3 and two Model Xs for about $231,900, prosecutors said. AdvertisementAdvertisementA man who managed to trick Tesla into giving him five of its electric cars for free has been sentenced to four years in prison, according to the US Department of Justice. The man, 34-year-old Michael Gonzalez from Vermont, was able to get five brand new EVs from Tesla that were worth over $560,000 in total, the DOJ said. The vehicles included a 2018 Model 3, and four Model X EVs, according to court records.

Persons: Tesla, Michael Gonzalez, Gonzalez, —, Prosecutors, he'd, Michael Organizations: DOJ, Service, US Department of Justice, eBay, Craigslist, Vermont Department of Motor Vehicles, MarketWatch, Tesla, US, Office, District of Locations: Michael Gonzalez from Vermont, Shelburne Bay, Vermont, District of Vermont

☆ Here are Wednesday's biggest analyst calls: Nvidia, Boeing, SoFi, Netflix, Apple, Cava, Walmart and more
▼ + stars: | 2023-10-11 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Here are Wednesday's biggest calls on Wall Street on Wednesday: Goldman Sachs upgrades Shoals to buy from neutral Goldman Sachs said the solar company is very attractive. Morgan Stanley upgrades Cava to overweight from neutral Morgan Stanley said it's gaining confidence in the restaurant chain. JPMorgan upgrades CSX to overweight from neutral JPMorgan said rail concerns have already played out. JPMorgan upgrades Iris Energy to overweight from neutral JPMorgan said the bitcoin mining company is "best-in-class." JPMorgan initiates CleanSpark as overweight JPMorgan said the bitcoin miner offers "relative value."

Persons: Goldman Sachs, Wells, Wells Fargo, TD Cowen, Cowen, Stephens, Raymond James, it's bullish, Morgan Stanley, Cava, it's, UBS downgrades Morgan Stanley, Oppenheimer, Needham, Robinhood, MAUs, Truist, Piper Sandler, JPMorgan, Mizuho, SoFi, SOFI, Leerink, Apple Organizations: Netflix, JPMorgan, CSX, Nvidia, Iris Energy, Energy, UBS, Boeing, Oppenheimer downgrades Texas, Texas, Qs, Logistics, Amazon, Arista Networks, Barclays, Ball Corporation, Apple, Walmart, Deutsche Bank, Cboe Locations: CAVA, OW, U.S, China, ANET, SoFi

☆ Bond rout won't end Fed balance sheet cuts, but endgame bubbling into view
▼ + stars: | 2023-10-06 | by ( Michael S. Derby | ) www.reuters.com time to read: +5 min

Since June 2022, the Fed has allowed more than $1 trillion of bonds to mature from its portfolio, including roughly $840 billion of Treasuries. QT drains liquidity from the banking system, reducing bank reserves parked at the Fed and cash stashed in its reverse repo facility. Others believe money market rates will start to move up in ways suggesting the system is short of cash. A New York Fed report in April projected an end to QT around the middle of 2025. A survey of major banks by the New York Fed released in August eyed an end to QT in mid-2024.

Persons: it's, ”, Kathy Bostjancic, Bostjancic, Goldman Sachs, Loretta Mester, “, Austan Goolsbee, Mary Daly, Michael Barr, Michael Cloherty, Mark Cabana, ” Cabana, Cabana, Michael S, Ann Saphir, Dan Burns, Andrea Ricci Organizations: Goldman Sachs, Federal Reserve, Silicon Valley Bank, Fed, Treasury, Reuters Graphics Reuters, Cleveland Fed, Bloomberg, Chicago Fed, San Francisco Fed, UBS, Bank Policy Institute, New York Fed, Bank of America, Daily, Derby, Thomson Locations: Silicon, Washington

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