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A quiet day yesterday in the United States as foreign exchange markets got ready for Asia to open.

10-year bond yield and currency data from Bloomberg paint a quiet day in those markets. The GBP/USD stayed flat between 9:30 am to 4:15 pm with the rate going from 1.2686 to 1.2684. The EUR/USD was flat as well with ever so slight dollar weakening from 1.0847 to 1.0851 this afternoon. The Japanese yen demonstrated … Continue reading A quiet day yesterday in the United States as foreign exchange markets got ready for Asia to open.

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I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

In comments made last week by a number of members of the Federal Open Market Committee, traders and investors should hold their horses on a cut in overnight banking rates anytime before June 2024. There appears to be some sentiment among Committee members that reducing the overnight lending rate between banks (federal funds rate) and … Continue reading I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

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Governments create bond markets and tax burdens. Keep your political activity within that parameter….

There was a scene in an episode of “Game of Thrones” where Jamie Lannister and his men sacked a castle and took off with loads of grain and other food stuff. That is how the vast majority of us feel during tax season: that the government, like Jamie Lannister, is coming around to haul away more … Continue reading Governments create bond markets and tax burdens. Keep your political activity within that parameter….

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It’s post Super Bowl Monday. What options contracts are in or out of the money.

Underlying Future Monthly option price-February 2024 Strike price Spot price   EUR FX (6EH4) 1.0806 1.1000 1.0792 Call option: OTM, Put option: ITM JPY/USD (6JH4) 0.0067385 0.00695 0.006701 Call option: OTM, Put option: ITM           Source: CME Group, x-rates.com. At 11:39 pm EST United States 10-year bond Germany 10-year bund Japan … Continue reading It’s post Super Bowl Monday. What options contracts are in or out of the money.

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The Federal Reserve, banking, and managing political theatrics ….

The Federal Open Market Committee issued a decision last Wednesday to maintain the target range of its federal funds rate between 5.25% and 5.50%. For banks that need to borrow from the Federal Reserve System’s discount window, rates for this lender of last resort facility is at 5.50%. Within the interbank market, banks will continue to see … Continue reading The Federal Reserve, banking, and managing political theatrics ….

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Should a president be allowed to manage the economy where she doesn’t provide actual facts?

If a president can’t give you full facts about the political economy, then should she be managing it? Last week, U.S. President Joe Biden announced that “inflation was at the pre-pandemic benchmark of 2 percent over the last six months of 2023.” The problem with this statement is that if year-over-year inflation was two percent during the … Continue reading Should a president be allowed to manage the economy where she doesn’t provide actual facts?

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One of those days where I think artificial intelligence is overhyped …

A few years back, I read Pierre Boulle‘s classic, “Planet of the Apes (1963).” I had the book sitting on my bookshelf since junior year in high school, ever since disco was still a thing. Fortunately, I kept the book as I moved from the Caribbean to and through the US mainland. Once I started to read it, … Continue reading One of those days where I think artificial intelligence is overhyped …