November 12th – Top Stories
- Long U.S. Bonds Are Biggest Losers as Data Boost Fed Taper Bets - Bloomberg – By Kristine Aquino & Mariko Ishikawa
Longer-term Treasuries are set to deliver the world’s biggest loss for sovereign debt this year as stronger-than-expected economic data out of the U.S. add to the case for the Federal Reserve to reduce asset purchases.
Benchmark yields rose to an almost eight-week high, and U.S. bonds with maturities longer than 10 years have slid 11 percent this year, the most among 144 indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Citigroup Inc.’s U.S. Economic Surprise Index reached a two-week high after Nov. 8 data showed payrolls rose more than forecast. Janet Yellen will face a confirmation hearing on Nov. 14 to lead the Fed.
- China Reins in Shadow Banking as Leaders Meet to Set Policy - Reuters – By Bloomberg News
China’s broadest measure of new credit fell by more than estimated in October, suggesting authorities are trying to keep shadow-finance risks in check as leaders map out a blueprint to sustain growth.
Aggregate financing was 856.4 billion yuan ($140.6 billion), the People’s Bank of China said yesterday in Beijing, below all nine projections in a Bloomberg News survey. New local-currency loans of 506.1 billion yuan compared with the 580 billion yuan median estimate of analysts. M2, the broadest measure of money supply, rose 14.3 percent from a year earlier.
3/ Eurozone & UK
- ECB’s Draghi Concerned About Deflation - Morning star – By Dow Jones Newswires
European Central Bank President Mario Draghni may be concerned about the possibility of deflation in the euro zone although he will dispute that publicly, German daily Frankfurter Allgemeine Zeitung reported on Tuesday citing an unnamed ECB “insider.”