Bond market affects mortgage rates

Share to Twitter Share to Linkedin Friday’s amazing job numbers — which continue to hit it out of the park — mean that no matter how often Wall Street talks itself into a Fed rate pause, it’s not going to happen any time soon. Barring a crash in commodity prices, inflation will need to fall to 5% before the Fed hits the brakes. “The fed will hate this set of numbers,” says Brian McCarthy, head of investment research firm Macrolens in Stamford, Conn. “January payrolls are always wonky due to annual revisions and an extreme seasonal adjustment, but with both hourly earnings and hours worked also looking much more robust than we were led to believe last month, there is no denying a picture of continued strength in the labor market, which is at odds with a gathering stream of layoff announcements.” The Federal Reserve already raised interest rates a quarter-point this week, its eighth hike since March . Those hikes, of course, could help slow the economy. … [Read more...] about Strong Labor Market Lends Itself To More Fed Hikes, But Not For Long

Adani group Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Fitch Ratings says there is no immediate impact on the ratings of the Fitch-rated Adani entities and their securities following the Hindenburg Research report alleging malpractices at India’s Adani group, and expects no material changes to its forecast cash flow. There are also no near-term significant offshore bond maturities – earliest in June 2024 for Adani Ports and Special Economic Zone Limited (APSEZ, BBB-/Stable); December 2024 for Adani Green Energy Limited Restricted Group 1 (AGEL RG1, BB+/Stable); and 2026 or beyond for all other entities – reducing refinancing risks and near-term liquidity risks. “Our ongoing monitoring will be looking closely at any major changes to the rated entities’ access to financing or cost of financing on a long-term basis, … [Read more...] about No immediate impact on Adani entities’ credit profiles from Hindenburg report: Fitch Ratings

The yield on the benchmark government bond is likely to ease in the coming months with uncertainty over domestic conditions lifting and lower-than-expected borrowing numbers announced in the Union Budget, experts said. The yield on the 7.26 percent 2032 paper may range from 7.10 percent to 7.30 percent in the months ahead, they said. “I expect the 10-year benchmark yield range to drift lower to 7.10-7.20 percent. The yield will slowly trend towards 7 percent in the coming two-three months,” said Sandeep Bagla, chief executive officer of Trust Mutual Fund. “Budget is behind us, giving us clarity on the borrowing. Headline inflation is declining and the rate hike cycle has come to an end. Hence, we feel that over a period of six months to one year, yields will decline,” said Marzban Irani, chief investment officer – of debt, LIC Mutual Fund. Bagla said demand from insurance companies, banks, foreign institutional investors, and the Employees’ Provident Fund Organisation will … [Read more...] about Budget 2023: Government bond yield set to trend towards 7%, say experts

The NFO for Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund opened on January 27. The Reserve Bank of India (RBI) on February 3 set a coupn rate of 7.26 percent for the new 10-year benchmark government bond maturing in 2033, raising Rs 12,000 crore. The coupon set on the new benchmark bond is similar to the coupon set on the previous 10-year benchmark bond. “This could be due to easing yields on the bonds after the budget,” said a dealer with a state-owned bank who spoke on condition of anonymity. Also read: Government bond yield eases post expected market borrowing figures The 10-year benchmark government bond is the pricing benchmark for the sovereign bond yield curve and is usually the most liquid paper in the secondary market for government debt. Read More Government bonds are the pricing reference for a vast variety of credit products in the economy, including corporate debt. Prior to this auction, the RBI has set 12 paise … [Read more...] about RBI sets 7.26% coupon rate for new 10-year benchmark government bond

Share to Twitter Share to Linkedin Publicly traded corporations that fail to file audited financial statements as prescribed by the SEC risk their stock tanking and being delisted from the exchange. Grave consequences to be sure. Yet there is no consequence to those municipal bond issuers for the same failure to file. Until now. Moody’s rating agency has finally had enough of dealing with municipal bad citizens. We count 861 CUSIPs on which they have withdrawn their ratings. Many issuers have multiple CUSIPs owned by investors just like you. In the Muniverse, 861 CUSIPs is not huge. But it’s a beginning. Sure, the issuer may have decided to dump Moody’s, causing the rating agency to withdraw their rating. Still, it’s an impressive number and something to my knowledge that hasn’t been done on this scale before. How do we investors assess a bond issuer’s ability to continue paying the coupons when due without timely financials or a credit rating report from … [Read more...] about What To Do When Your Muni Bond Rating Is Withdrawn

The returns on the investment in listed bonds are likely to be impacted in the coming days as the government in the Union Budget 2023 has removed the exemption from tax deduction at source (TDS) on these securities, experts said. In the Finance Bill 2023, the government announced the omission of clause (ix) under section 193 of the Income Tax Act, which provides an exemption from TDS on interest payments on listed bonds. So accordingly, now all bondholders have to pay TDS on their returns, which will reduce their returns. “The returns of investors will decrease because of TDS applicable now on all interest on securities be it listed or unlisted,” said Umesh Kumar Tulsyan, Managing Director, Sovereign Global. “It affects the returns. A bit of illiquidity will crop up due to this. Held-to-maturity (HTM) investors or those who have exemptions from tax like mutual funds, insurance companies, and provident funds, among others, shall not be impacted as such,” said Ajay … [Read more...] about Budget 2023: TDS on listed bonds may hit investor returns; here’s what experts say

Share to Twitter Share to Linkedin Key News Asian equity markets were broadly higher as Taiwan and South Korea outperformed. The European Central Bank (ECB), and the Bank of England (BOE), followed the Fed’s +25bps interest rate hike with a higher, +50bps rate hike, while the Hong Kong Monetary Authority (HKMA) mirrored the US with a +25bps rate hike. Meanwhile, CNY, China’s currency that trades during local market hours, gained +0.27% versus the US dollar to close at 6.72 CNY per USD, while the Asia Dollar Index fell -0.09% versus the US dollar. Shanghai, Shenzhen, and Hong Kong opened higher but slid to close down slightly/mixed on little news. Hong Kong-listed internet stocks were mixed as the Hang Seng Tech Index managed a small gain as Hong Kong’s most heavily traded stocks were Tencent, which fell -0.52%, Meituan, which fell -1.94%, Alibaba, which fell -0.91%, and Baidu, which gained +4.99%, riding the ChatGPT-like AI search announcement and … [Read more...] about CNY Rallies, ECB & BOE Hike Interest Rates

Share to Twitter Share to Linkedin The Labor Department’s January employment report was extremely strong by absolutely any standard. Don’t be distracted by the argument that “seasonal adjustments are misleading.” It’s true that several monthly jobs reports have been suspect over the past couple of years because COVID-related disruptions in normal hiring cycles affected the normally benign seasonal adjustment process. Those problems, though, happened near the beginning or end of the academic year and showed up almost entirely in school employment numbers. In contrast, January’s strong jobs growth was very much a “what-you-see-is-what-you-get” report. Here are four key takeaways: First , there are 517,000 more jobs than in December, and almost 5 million more jobs than a year ago. Almost 25 million more jobs than in the worst of the COVID shutdown and 2.7 million more jobs than before the pandemic started. Second , the U.S. is in its fourth … [Read more...] about January’s Job Report Allays Big Concerns About The Economy’s Future

The Thai baht is set to soar further as one side effect of the latest escalation of the China-US trade war. Economists say the latest tit-for-tat trade sanctions will hasten foreign capital inflows into Thailand’s “safe haven” bond market while the US Federal Reserves may again cut interest rates, adding more fuel to the situation. Meanwhile the Thai export situation is expected to continue to worsen. China announcing on August 23 a set of retaliatory tariffs of between 5-10% on $75 billion worth of US goods. US President Donald Trump responded by raising existing tariffs on $300 billion worth of Chinese goods by 15%, effective December 15. Read The Thaiger story HERE . Markets reacted badly last Friday afternoon and then again on Monday morning when markets opened across Asia. Related news Thai celebrities duped out of 20 million baht in online toy scam, 300 victims speak out 17 hours ago Thai passport worth less than Cambodian | Thailand … [Read more...] about Baht to climb higher against USD, more pressure on exports

Share to Twitter Share to Linkedin Key Takeaways Disappointing Tech Earnings Strong Jobs Report Can Markets Continue To Rally? Markets have staged an impressive rally so far this year. This week alone through Thursday, the S&P 500 is up 2% while the Nasdaq 100 is up 5%. The lone laggard has been the Dow Jones Industrial Average, which is flat on the week. What’s interesting to note here is that the Dow, while at one time a good barometer for markets, has since become an antiquated gauge largely because of how it is weighted. However, disappointing earnings from Alphabet, Amazon AMZN and Apple AAPL along with a much stronger than expected jobs report could put pressure on all indices. Much of the strength in tech stocks this week came following impressive earnings from Facebook parent, Meta. After a better than expected earnings report Wednesday, the stock rallied 23%, its biggest single day percentage gain since 2013. The … [Read more...] about Disappointing Earnings From Alphabet, Amazon And Apple