Central bankers have provided us with a buffet of easing and say party on, http://www.mikethefanboy.com/wp/wp-content/uploads/2012/04/amazing_fun_weird_cool_waynegarth_200907240422572620.jpg, still believing in the lever of easing to spur borrowing notwithstanding the secular need to delever. The BoE as expected decided that printing another 50b pounds will help their economy. The ECB cut rates by 25 bps to .75% also as expected. They also cut its deposit rate to zero from 25 bps, giving zero incentive now to European banks to park money with them. China cut its lending rate by 31 bps and its deposit rate by 25 bps and gave banks leeway to offer loans at rates up to 30% below the benchmark level. Ireland sold debt for the 1st time in almost 2 yrs, selling 3 month bills at a yield of 1.80%. Spain came to market too with 3 issues totaling 3b euros, in line with their target amount and maturities stretching out to 10 yrs (10 yr sold with yield of 6.43% vs 6.04% last month). In the US, the MBA said refi apps fell 8.4% to a 4 week low notwithstanding record low mortgage rates. Purchase apps were up just .6%. II: Bulls 42.5 v 38.7, Bears 24.5 v 24.7. AAII: Bulls 32.6 v 28.7, Bears 33.3 v 44.4

Category: MacroNotes

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