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Why Have US 10-Year Yields Risen 30 bp since Monday?

August 27, 2015
US 10-year Treasury yield has risen 30 bp since Monday's low water mark.  The are a number of reports that try to link the backing up in US yields to purported to be sales by China. The Chinese sales, in turn, are linked to its efforts to stem the decline in the yuan.  
China may indeed have sold Treasuries.  Bill Gross at Janus apparently sugg…
Why Have US 10-Year Yields Risen 30 bp since Monday? Why Have US 10-Year Yields Risen 30 bp since Monday?  Reviewed by Marc Chandler on August 27, 2015 Rating: 5
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Great Graphic: Australian Dollar Tests Monthly Trend Line

August 27, 2015
This Great Graphic, created on Bloomberg, is a monthly chart of the Australian dollar.     The decline this week has brought it to the trend line drawn off the 2001 and 2008 lows. It is found now near $0.7025.  The cyclical low was recorded at the start of the week near $0.7050. 
The corrective bounce, helped by the stabilization of Chinese equitie…
Great Graphic: Australian Dollar Tests Monthly Trend Line Great Graphic:  Australian Dollar Tests Monthly Trend Line Reviewed by Marc Chandler on August 27, 2015 Rating: 5
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Markets Continue to Recover

August 27, 2015
The global capital markets are staging a convincing recovery.   The strong sustained gains in US equities yesterday has fueled continued recovery in Asia and Europe.  The strong rally of the Shanghai Composite in the last hour of domestic trading looked to be officially goosed, and some are linking to the redoubling of efforts to get the market to…
Markets Continue to Recover Markets Continue to Recover Reviewed by Marc Chandler on August 27, 2015 Rating: 5
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The Significance of the Durable Goods Orders

August 26, 2015
The US dollar and US equity futures responded favorably to the stronger than expected durable goods orders.  The sizable upward revision in the June shipments (from 0.3% to 0.9%) underscore expectations that Q2 GDP will be revised sharply higher when reported tomorrow.  
Headline durable goods orders rose 2% in July and 2.2% excluding military orde…
The Significance of the Durable Goods Orders The Significance of the Durable Goods Orders Reviewed by Marc Chandler on August 26, 2015 Rating: 5
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Three-D North American Session

August 26, 2015
The inability of the US stock market to sustain gains following the Chinese rate cut has left the market unsettled.  Similarly despite early gains, Chinese stocks finished lower, with the losing streak extended into a fifth session.  
Many Asian markets did gain, including a 3.2% rise in the Nikkei, and the MSCI Asia-Pacific Index gained about 1.5%…
Three-D North American Session Three-D North American Session Reviewed by Marc Chandler on August 26, 2015 Rating: 5
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What Next For China?

August 25, 2015
China appears to be flailing. Its stock market stabilization efforts have failed miserably.  It looks as if it has botched another attempt to let market forces have greater sway over the yuan's exchange rate yet.
The 25 bp cut in key one-year lending and deposition rates and the 50 bp cut in reserve requirements announced today after the local…
What Next For China? What Next For China? Reviewed by Marc Chandler on August 25, 2015 Rating: 5
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China cuts Rates and RRR, Helps Markets Recover from Yesterday's Hemorrhage China cuts Rates and RRR, Helps Markets Recover from Yesterday's Hemorrhage Reviewed by Marc Chandler on August 25, 2015 Rating: 5
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Great Graphic: All that is Solid Melts into the Air

August 24, 2015
There are two currency pegs that serve as bedrocks.  They were not tackled in the series of emerging market crisis that began in the mid-1990s.  They did not succumb during the Great Financial crisis.  Yet the market is betting that they fall.
The two pegs are the Hong Kong dollar and Saudi Arabia's riyal.  You can't see the pressure looki…
Great Graphic: All that is Solid Melts into the Air Great Graphic:  All that is Solid Melts into the Air Reviewed by Marc Chandler on August 24, 2015 Rating: 5
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Emerging Markets: Week Ahead Preview

August 24, 2015
(from my colleague Ilan Solot)
It is a bitter start of the week for EM. It’s hard to imagine either stabilization or meaningful differentiation in EM until asset prices in major markets find a bottom.Also, the second leg down in commodity prices will keep fundamental pressure elevated for the exporters. Russia, Malaysia, Mexico, South Africa, and …
Emerging Markets: Week Ahead Preview Emerging Markets:  Week Ahead Preview Reviewed by Marc Chandler on August 24, 2015 Rating: 5
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