Check my charts-page. Notice that the bond yields of the developed, non-crisis countries have been moving up for a month now - and the CDS prices have moved up as well. Interestingly, the crisis-hit PIIGS yields and their CDS prices have remained at low levels. The market is pricing in an economic recovery and an end to the euro crisis. Time to exit European bonds - if the economy improves, the bond prices are too high. And if the crisis erupts again, also the core European countries will be hit because of the shared debt burden.
Today, we had the FOMC meeting and the statement. The euro's strength has not gone unnoticed, and some really slick ones in Finnish.
Previously on MoreLiver’s:
Roundups &
Commentary
Markets – Between
The Hedges
Recap – Global
Macro Trading
The Closer – alphaville
/ FT
Roundup – Kiron
Sarkar / The Big Picture
Europe: Italy Crashes
Most In Six Months Despite EURUSD Strength – ZH
EUROPE
German
politicians tend to associate Cyprus with money laundering and tax
dumping. And now they are wondering whether the island is big enough to be
worth bailing out.
Super Mario Noose Tightens As Another Monte
Paschi Derivative Emerges; Investigation Into Bank Of Italy Opened – ZH
EURO’S
STRENTH
Strong EUR could prompt an ECB rate cut – Nordea
Goldman Warns That Rising Euro May Prompt ECB
Action Soon – ZH
Euro Is Currency War’s First Casualty – WSJ
A year ago,
the chances of euro survival were being weighed in the balance and found
severely wanting. Now, the cussed thing is not just still here, all member states
present and correct, it's bashing aside all rivals like Popeye after a spinach
banquet.
UNITED STATES
FOMC
January FOMC Statement – FED
December FOMC Statement – FED
Will the Fed adopt thresholds for bond buys? – MacroScope
/ Reuters
Suddenly
top Wall Street firms are talking about the possibility that the Fed might
adopt numerical thresholds for asset purchases, in the same way it has done
with interest rates more broadly
Fed stays the course – Nordea
Today’s
FOMC meeting was a non-event, leaving monetary policy and the forward guidance
unchanged as widely expected.
FOMC: easing bias remains in place – Danske
Bank (pdf)
FOMC statement marginally hawkish – TradingFloor
Comments (Huopainen) – TradingFloor
Parsing the Fed: How the Statement Changed – WSJ
Redacted Version of the January 2013 Version of
the FOMC Statement –
Aleph
Blog
Fed speaks, but does market listen? – MacroScope
/ Reuters
Fed Keeps Buying Bonds; Stocks Barely Blink – WSJ
IN FINNISH
Tuhat miljardia
euroa – kuin taikurin hatusta – Jan
Hurri / TalSa
Euroalueen keskuspankki EKP lupasi puoli vuotta sitten, että
se puolustaa euroa tarvittaessa vaikka rajattomin velkakirjaostoin. Vielä se ei
ole käyttänyt tukiostoihin euroakaan, mutta lupaus on tuottanut riskipitoisen
finanssivarallisuuden omistajille mojovan pikavoiton: tuhat miljardia euroa.
Irtisanoudun
yhteisistä eurooppalaista arvoista – Olli
Pusa / US Puheenvuoro
(keskustelu on huima)
Käräjäoikeudelta
hyvin perusteltu tuomio Nuorisosäätiön jutussa – Jyrki
Virolainen
Kommentti:
Vakiintunut maan tapa onkin vakava rikos – YLE
Suomen oikeuslaitos katsoo nyt, että tähän saakka sallittuna
pidetty avokätinen vaalirahoituskäytäntö on vakavaa rikollista toimintaa,
kirjoittaa toimittaja Ari Mölsä nettikommentissaan.
Virkamiesdiktatuuri
on kevyt kuin perhonen – Arhi
Kuittinen / US Puheenvuoro