Recap 3-23-12

Main Items:

  • Canadian Core CPI increased to 2.3% YoY in Feb vs 2.2% exp and 2.1% prev. Headline CPI increased to 2.6% vs 2.7% exp and 2.5% prev.
  • BofA to test a program for homeowners facing foreclosure risk to rent – Dealbook
  • SNB Bulletin: “Even at the current rate, the Swiss franc is still high. Compared to December, the inflation forecast has even fallen further. If developments in the international economy are worse than foreseen, or if the Swiss franc does not weaken further, as expected, downside risks for price stability could re-emerge.”
  • A BoJ source, via Reuters:
  1. "Sometimes, the biggest fear for a central bank is for its policy to have too much effect on markets," said one source familiar with the central bank’s thinking, who spoke on condition of anonymity due to the sensitivity of the matter. "You may think you have done something good by acting aggressively. But what happens when people keep asking for more? Now the BOJ has put itself under endless pressure for action."
  2. "There are times the BOJ needs to act boldly," said another source familiar with the central bank’s thinking. "But there are also times it needs to be cautious about doing too much."
  3. "Why would the BOJ continue easing when there’s nothing wrong with the economy? I think February was an exception," said a third source with knowledge of its thinking.

Overseas:

  • MPC’s Financial Policy Committee called on banks to raise capital “as early as feasible.”
  • Eurex announced on Wednesday that a new OAT futures contract will be issued on 16 April 2012. The new futures contract will be structurally similar to the Bund future

Upcoming Data:

  • Mon: German IFO, Chicago Fed, US Pending Home Sales
  • Tues: German GfK Cons Confidence

Commentary:

I anticipate taking some time off over the next few weeks. As a result, updates will be sporadic.

Separately, 2 charts from the results of Citi’s March duration survey:

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One thought on “Recap 3-23-12

  1. Time off?! :)
    This is my go-to source for the day’s end refresher, enjoy the well deserved break.

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