At Least Greenland And Kazakhstan Are Raising Interest Rates! (Most Central Banks Lowering Rates)

Even more central banks joined the global rate-cutting trend, with Guinea and Georgia on Wednesday lowering their benchmarks for the first time this year after South Sudan did so on Tuesday.

More than a dozen institutions including the Federal Reserve, European Central Bank and Bank of Japan have scheduled monetary policy meetings this week.

But not Greenland and Kazakhstan.

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Of the major Central Banks, India is really going wild to the downside along with Australia, Sweden and (no surprise) Japan.

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Today, as expected, The Fed last rates unchanged.

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Here is Greenland’s version of San Francisco! 

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What Virus? MBA Mortgage Applications SOAR With Rate Declines (Particularly Refi Apps Up 55.43% WoW)

If you are watching panic at the Bank of Japan, European Central Bank, and Bank of England, you would think that the Spanish Flu from 1918 that killed between 17 and 100 million people was back.

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While we watch the DJIA shed another 800 points in the first 30 minutes of trading, mortgage applications for last week skyrocketed as is there was no coronavirus.

Mortgage applications rose 55.43% from the preceding week. Refinancing applications rose 78.585 (NSA) while mortgage purchase applications rose 7.21%, far less than refinancing applications.

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Here is a chart of refinancing applications as mortgage rates tumble.

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Let’s see what happens with existing home sales in the next report.

 

That’s Volatility! Dow Opens Up 500 Points, LIBOR Plunges To Financial Crisis Levels, Trading Volume Soars

We don’t know how bad the Coronavirus will be and how badly it will impact the global economy. Or what The Federal Reserve and other central banks will do to combat the anticipated slowdown. In other words, there is uncertainty spooking markets.

Total equity trading volume has been holding at very high levels, signaling emotion-driven moves. The 10-day moving average is at the highest since the growth-scare days in late 2011.

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The three-month dollar LIBOR plunged to financial crisis levels.

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The Dow opened up 500 points.

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And the 10-year Treasury yield keeps on dropping.

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Yes, volatility rears its ugly head.

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US Treasury And Swaps Curves Remain Sagging, Jaguar-Land Rover To Issue US Dollar Bonds, Jupiter Moon Europa ‘Almost Certainly’ Home To ‘Octopus-like Aliens’

As we close out the week, we can see that the US Treasury actives curve, the on-the-run/off-the-run curves and the US dollar swaps curves are all generally upward sloping, but sagging (downward sloping) at the short-end.

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And now we have Dennis Reynold’s favorite car company issuing Eurobonds.

(Bloomberg) — Jaguar Land Rover Automotive Plc is meeting investors in the U.S., ahead of a potential sale of new bonds, days after warning the coronavirus was impacting its businesses.

The luxury carmarker has hired Bank of America Merrill Lynch to sound out interest in an issue of debt with an eight-year maturity, according to people familiar with the matter who asked not to be named because they’re not authorized to speak publicly.

Investors have said they would consider ordering bonds offering yields between 7.5% and 8%, one of the people said.

A spokeswoman for Jaguar Land Rover did not respond to a request for comment. Officials at BAML declined to comment on the deal.

The maker of the Land Rover Discovery SUV is scheduled to repay the equivalent of about $1.2 billion of maturing bonds over the next two years, including a $500 million note due in March 2020.

Here is The Gang with Dennis Reynolds driving his beloved Range Rover.

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Lastly, Jupiter moon Europa ‘almost certainly’ home to ‘octopus-like aliens’.

Perhaps she watched Galaxy Quest before penning the article.

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