The emergency lending facilities set up by the Federal Reserve to stabilize markets in the spring were successful and could be restarted later if needed after they expire at year end, New York Federal Reserve Bank President John Williams said Tuesday.
U.S. Treasury yields on the
longer end of the curve extended their rise on Tuesday as
investors rushed to riskier investments, including soaring
stocks.
U.S. consumer confidence fell more than expected in November amid a widespread resurgence in new COVID-19 infections and business restrictions, reinforcing expectations for a sharp slowdown in economic growth in the fourth quarter. The survey from the Conference Board on Tuesday followed on the heels of reports this month showing a moderation in job growth and retail sales in October.
* Consumer confidence index falls 5.3 pts to 96.1 in November. * House prices increase 6.6% year-on-year in September. By Lucia Mutikani. U.S. consumer confidence fell more than expected in November amid a widespread resurgence in new COVID-19 infections and business restrictions, reinforcing expectations for a sharp slowdown in economic growth in the fourth quarter.
* President warned of "major" unemployment wave in briefings. * Central bank chief ousted, then finance minister resigned. * Quick pivot after Biden election and before new virus curbs. By Orhan Coskun and Jonathan Spicer.
U.S. Treasury yields on the
longer end of the curve inched higher on Tuesday with the stock
market poised to open stronger and ahead of a seven-year note
auction.
The benchmark 10-year yield was ...
Thailand's central bank governor said on Tuesday the speedy rise of the country's baht currency was causing concern, but played down the chance of launching unconventional measures such as mass bond purchases any time soon.
Nigeria's central bank held its benchmark lending rate at 11.5% on Tuesday, its governor Godwin Emefiele said. Prior to Tuesday's meeting, the last of 2020, the bank had cut the rate on two occasions this year - both by 100 basis points. Emefiele said all 10 members of the monetary policy committee had voted to stick to the rate.
Nigeria's central bank held its benchmark lending rate on Tuesday at 11.5%, its governor Godwin Emefiele said. Prior to Tuesday's meeting, the last of 2020, the bank had this year cut the rate on two occasions - both by 100 basis points.
Thailand's central bank governor said on Tuesday the speedy rise of the country's baht currency was causing concern, but played down the chance of launching unconventional measures such as mass bond purchases any time soon.
Brazil's IPCA-15 consumer price index rose 0.8% in the month to mid-November, statistics agency IBGE said on Tuesday, the highest November reading for five years as food prices continued to boost overall inflation.
Bank of Japan Governor Haruhiko Kuroda said on Tuesday policymakers must be vigilant to the risk of new financial imbalances and a shift in economic changes posed by the coronavirus pandemic. "Due attention must be paid to the possibility that a shift in the challenges facing firms and households from liquidity to solvency could affect the future financial system," Kuroda said.
Mexico's unemployment rate eased to 4.7% in October from 5.1% in September, as an economic recovery from the coronavirus pandemic continued, data from national statistics office INEGI showed on Tuesday.
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E. The Australian dollar rose to a two-and-a-half-month high and the euro gained on Tuesday as U.S. President Donald Trump accepted the transition to a Joseph Biden presidency, which may include former Federal Reserve Chair Janet Yellen as Treasury secretary. Appetite for riskier assets was evident across the board.
A massive increase in projected government debt poses a "major threat" to financial stability in South Africa, the central bank warned on Tuesday, while problem mortgages were also a risk. South Africa's government debt is now set to hit 82% of gross domestic product this year as the Treasury grapples with the impact of the COVID-19 pandemic.
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E. Risk-oriented currencies including the Australian dollar and the euro rose on Tuesday after U.S. President Donald Trump accepted the start of a transition to a Biden regime, that may include former Federal Reserve Chair Janet Yellen as Treasury secretary.
Germany's gross domestic product grew by a record 8.5% in the third quarter as Europe's largest economy partly recovered from an unprecedented plunge caused by the first wave of the COVID-19 pandemic in spring, the statistics office said on Tuesday. The stronger-than expected rebound was mainly driven by higher household spending and soaring exports, the office said.
Germany's gross domestic product grew by a record 8.5% in the third quarter as Europe's largest economy partly recovered from an unprecedented plunge caused by the first wave of the COVID-19 pandemic in spring, the statistics office said on Tuesday.
President-elect Joe Biden is expected to nominate former Federal Reserve Chair Janet Yellen as U.S. Treasury secretary, breaking a 231-year gender barrier and putting a seasoned economist and labor market expert in charge of leading the country out of the steepest downturn since the Great Depression.
- Chicago Federal Reserve Bank President Charles Evans said Monday there is still "quite a long ways to go" for the U.S. recovery from the coronavirus crisis, adding that he expects the Fed to keep interest rates at their current near-zero level until perhaps into 2024.
P resident-elect Joe Biden is expected to nominate former Federal Reserve Chair Janet Yellen as U.S. Treasury secretary, breaking a 231-year gender barrier and putting a seasoned economist and labor market expert in charge of leading the country out of the steepest downturn since the Great Depression.
Investors gave their approval on Monday to U.S. President-elect Joe Biden's pick of former Federal Reserve Chair Janet Yellen to be the next Treasury secretary, touting her experience at the central bank as critical to helping the country weather coronavirus-fueled economic struggles.
U.S. Treasury yields moved higher on
Monday and the yield curve steepened on positive COVID-19
vaccine news and a report that former Federal Reserve Chairwoman
Janet Yellen is President-elect Joe ...
Brazil's real, which hit a record low in May and is down 30% against the dollar this year, has overshot, Economy Minister Paulo Guedes said on Monday, pegging its equilibrium level closer to 5.00 per dollar.
- Chicago Federal Reserve Bank President Charles Evans said Monday there is still "quite a long ways to go" for the U.S. recovery from the coronavirus crisis, adding that he expects the Fed to keep interest rates at their current near-zero level until perhaps into 2024.
Chicago Federal Reserve Bank President Charles Evans said Monday there is still "quite a long ways to go" for the U.S. recovery from the coronavirus crisis, adding that he expects the Fed to keep interest rates at their current near-zero level until perhaps into 2024.
U.S. President-elect Joe Biden is expected to tap former Federal Reserve Chair Janet Yellen as U.S. Treasury Secretary, putting a woman in the job for the first time, according to two Democratic allies.
U.S. President-elect Joe Biden is expected to tap former Federal Reserve Chair Janet Yellen as U.S. Treasury Secretary, putting a woman in the job for the first time, according to two Democratic allies.
Chicago Federal Reserve Bank President Charles Evans said Monday he is "optimistic" about the U.S. recovery, but added that there is still "quite a long ways to go" before the economy is back to full strength, and further fiscal support would be helpful.
Brazil's Economy Minister Paulo Guedes said on Monday that the real's exchange rate, which hit a record low in May and has lost around 30% of its value against the dollar this year, probably overshot.
A resilient financial system and a targeted response by authorities have tempered the impact of the COVID-19 pandemic on Canada's financial system, but risks remain and the Bank of Canada must remain vigilant, a top official at the bank said on Monday.
U.S. President-elect Joe Biden plans to nominate former Federal Reserve Chairwoman Janet Yellen to become the next Treasury secretary, the Wall Street Journal reported on Monday, citing people familiar with the decision.
- A vaccine to prevent the coronavirus may not be widely available until next summer, and households could struggle over the next several months without more government aid, Richmond Federal Reserve Bank President Thomas Barkin said on Monday.
A vaccine to prevent the coronavirus may not be widely available until next summer, and households could struggle over the next several months without more government aid, Richmond Federal Reserve Bank President Thomas Barkin said on Monday.
U.S. holiday sales are expected to rise up to 5.2% in 2020, the National Retail Federation said on Monday, as Americans look to spend more on gifts during the festive period while COVID-19 cases rise.
The emergency lending programs set up by the Federal Reserve to support financial markets served as successful backstops, but the U.S. economy still faces major obstacles at a time when millions of Americans are unemployed, state and local governments are struggling and coronavirus infections are rising, a senior official at the New York Fed said on Monday.
A deputy governor of Turkey's central bank said on Monday that dollarisation in the country would decline, thanks to the bank's tight monetary policy stance, after a much anticipated rate hike last week.
- U.S. business activity expanded at the fastest rate in more than five years in November led by the quickest pickup in manufacturing since September 2014, a survey showed on Monday in an indication the economy keeps making progress at clambering out of the COVID-19 recession even as infections surge.
U.S. business activity expanded at the fastest rate in more than five years in November led by the quickest pickup in manufacturing since September 2014, a survey showed on Monday in an indication the economy keeps making progress at clambering out of the COVID-19 recession even as infections surge.
* REPUBLIC OF PERU FILES PROSPECTUS SUPPLEMENT RELATED TO POTENTIAL THREE-PART USD-DENOMINATED GLOBAL BONDS OFFERING; SIZE NOT DISCLOSED - SEC FILING Source text for Eikon: Further company coverage: [ ]
A deputy governor of Turkey's central bank, Oguzhan Ozbas, said on Monday dollarisation will decline thanks to the newly tight monetary policy stance. The trend of Turks snapping up foreign currencies limits the effectiveness of the policy, Ozbas said, adding that Turkey overcame a similar trend in the past and will do it again.
U.S. Treasury yields moved higher on
Monday and the yield curve steepened as investors took
encouragement from positive COVID-19 vaccine news and looked
ahead to minutes from the U.S. Federal Reserve ...
U.S. Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin will appear before the Senate Banking Committee on Dec. 1 to deliver a quarterly update on emergency measures taken to provide economic relief from the downturn triggered by the coronavirus pandemic, the committee said on Monday.
Turkey tight monetary policy stance is not enough to attract foreign investment but planned broader reforms in the economy and the judiciary are also crucial, Central Bank Deputy Governor Oguzhan Ozbas said on Monday. The central bank last week hiked it key interest rate by 475 points to 15% in its sharpest tightening in more than two years.
Turkish central bank deputy governor Oguzhan Ozbas said on Monday that there is a quite strong possibility that Turkish economy will record positive GDP growth this year. Speaking at an event by Institute of International Finance Ozbas said recent coronavirus measures including closures of schools and restaurants will probably have limited impact on economic activity.
Brazil's inflation outlook for next year rose for a fifth consecutive week, a central bank survey showed on Monday, prompting economists to raise their average year-end interest rate forecast to 3.00% from 2.75%. Economists also raised their 2020 inflation outlook for a 15th straight week, according to the central bank's latest weekly "FOCUS" survey.
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E. By Elizabeth Howcroft. Risk appetite in currency markets was boosted by progress towards a COVID-19 vaccine rollout even as PMI data showed a sharp contraction in euro zone business activity as a result of lockdown restrictions.
The possible arrival of a coronavirus vaccine in the coming weeks means the Federal Reserve may soon have to lay out its plans for helping the economy navigate the potentially choppy transition to a post-pandemic world.
British business activity has contracted in November as a new wave of coronavirus restrictions hammered the huge services industry, but news of possible vaccines have boosted hopes for 2021, a survey showed on Monday.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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