Sept 9
Sept 9. Astoundingly large (record) drop in consumer credit in July of 21 billion. Sixth month of consecutive decline.
–Today’s features include the ten year auction ($20 B), Beige Book, and comments by Chicago Fed’s Evans and Dallas’ Fisher. Other Fed speakers are slated for tomorrow.
–Eurodollar curve continued to steepen with reg/gold pack spread up nearly 5 bps to close near 250 bps. 2/10 remains a few bps below its recent high of 257. Red/gold was as high as 300 in the beginning of June, which has been the high for this cycle.
–A headline in this morning’s Wall Street Journal says China Investment Corp (CIC) is looking at making investments in distressed US real estate, which makes sense from the standpoint of hedging some dollar risk with dollar-based collateral that might actually rise inversely to the currency.
–New dollar low yesterday but gold failed to hold early gains.
