Shocker……. this is a result of reckless spending from the Federal Reserve and US government from giving aids to foreign countries to contracting the US economy with, at best, misguided policies, at worst, destructive policies. What’s the, predictable, outcome? Increased inflation. Oh, the public can feel the burden as essential items are increasing prices while …
Author Archives: Emanuelle Bermudez
Physical Gold is not a stock
You can look at the report here. Gold is not a stock. You can’t just sell a gold in a pinch and expect to make a profit, unless the person willing to buy from you is desperate, don’t expect to make a quick buck. If you read my previous post, gold is highly liquid, in …
US Industrial Production Index stays stale, while total capacity slightly contracted for the month of April
US Industrial production Index (IPI) remains unchanged. Expectations were 0.1%. Since elections 2024 are coming around the corner, current administration would like to see some growth, unfortunately, it didn’t. It stays plateau. Meanwhile……. Capacity contracted, slightly, for the month of April from 78.49 last month to 78.40 with Manufacturing lowering from 77.19 to 76.88 while …
Consumer Price Index (CPI) came slightly below expectations
As you can see here. Expectations for CPI range from 0.3% – 0.4% MoM. CPI came at 3.4% (0.34%) MoM, slightly below the 0.4% expectations. Not seasonally adjusted: Food, overall, came at 2.2%. The only food price to go down was dairy and related products -1.3%. Eating out/takeout increased by 4.1%. Energy went up by …
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Producer Price Index came hotter than expected
You can find the chart here. Goods, energy, service and trade went up. Goods up by 0.4% compared to last month (March) which went down by -0.2%. Energy went up by 2.0% compared to last month (March) which was -1.3%. Service went up by 0.6% compared to last month (March) which was -0.1%. Trade went …
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Sweden shifting from cashless to cash
You can read the report here, here, and here. Sweden, suddenly, doing a U-turn on the trend away from cash. The reasons for the sudden shift are numerous from young people supporting cash due to privacy concerns, war in Ukraine, power outage, cybersecurity risks and so much more. Sweden has been pursuing digital only payment …
30-year Treasury auction was spectacular
30-year treasury auction on May 9, 2024, was spectacular. Total amount sold was around $25 billions. High yield 4.635%, was the same as the 3- and 10-year treasury auction, impressive. Median yield was 4.585% Bid to cover was 2.409%. Direct bidders were awarded 19.8% while indirect bidders were awarded 64.9%. Dealer were left with 15.4%, …
10-Year treasury auction solid
10-year treasury auction sold a total amount around $42 billions on May 8, 2024. High yield was 4.483%, is again, impressive. I am actually still surprised that yields are still below 5% due to the fact that the US economy is flirting with stagflation. Median yield was 4.422%. The bid to cover was 2.486%. Direct …
3-year treasury auction solid
The total amount sold of 3-year treasury auction on May 7, 2024, was around $58 billions. Most importantly, high yield was just 4.605%. Given the circumstances, that’s impressive. Median Yield was 4.550% You can read the auction report here Bid-to-cover was 2.632%. Dealers took 14.9% which is around the average. Direct bidders took 19.6%, while …
Bank Term Funding Program (BTRP) is over. Now comes the crisis.
What is bank term funding program? If you don’t remember the collapse of Silicon Valley bank crisis. Here’s a brief recap, Silicon Valley bank balance sheet tells a normal story, nothing alarming until you realized their investment. In year 2020, the Federal Reserve went on a buying spree to buy treasury bonds, the program was …
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