Compounding the problems in commercial paper is the fact that money markets are being tapped for cash by investors, and money markets are big buyers of commercial paper.
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Already, money markets are building in some easing in 2020.
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There was little reaction in Chinese forex and money markets.
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But the meeting was overshadowed by turmoil in money markets.
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For all of 2010, money markets saw $525.1 billion in outflows.
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A cut to official interest rates feeds through into money markets.
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Is the institutional structure of our money markets compatible with it?
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Money markets had seen little chance of a cut in December.
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A lot of companies had parked funds in money markets, but with the expectation of the Fed continuing to lower rates, why keep it in money markets if it's going to be parked a little while longer?
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Money markets expect no more rate hikes from the Fed this year.
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Money markets expect one rate hike in the first half of 2020.
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Money markets expect the central bank to hike rates again by January.
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Indian bond and money markets were closed on Wednesday for a public holiday.
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That is leading money markets to price in multiple rate rises in 2018.
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Money markets are pricing in a 25 basis point cut by January 2020.
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In a panic, however, money-markets dry up as the risks loom larger.
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It is considered more aligned to supply-demand dynamics in China's money markets.
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Money markets see a greater-than 70 percent chance of a rate hike.
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Money markets are pricing in a 25-basis-point cut by June 2020.
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THEN IF THEY FEEL UNCONFIDENT THEY PUT IT IN LOW FEE MONEY MARKETS.
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Money markets are pricing in a 25 basis point cut by June 2020.
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Asbury created a proprietary look at the velocity of money into money markets.
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She joined the growing index desk, then went to the money-markets group.
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Money markets see a greater-than 33 percent chance of an October hike.
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Money markets see about a 25% chance of a rate cut next month.
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Money markets are positioned for sizeable rate cuts between now and end-2020.
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Money markets are positioned for sizeable rate cuts between now and end-233.
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Money markets are currently pricing in up to three rate cuts this year.
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Money markets expect an interest rate cut by the end of the year.
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Money markets are betting central banks will slash interest rates fast and frequently.
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Money markets expect the central bank to hold rates unchanged again on Wednesday.
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Money markets expect the Bank of Canada to hike once more by December.
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Money markets expect the central bank to hold rates unchanged again on Wednesday.
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Money markets now see a 61% chance for a 0.25% cut on Jan.
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Treasury is also asking permission to backstop money markets, according to the report.
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Money markets see about a 50 percent chance of another hike before year end.
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"We are seeing lots of interest in money markets, too," E-Trade's Loewengart said.
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JANUARY 21ST should have been a momentous day for the European Union's money markets.
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Money markets are pricing in a 25 basis points cut by January next year.
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It may also have settled some of the jitters on the international money markets.
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Money markets are pricing in an 82% chance of a cut at the Oct.
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Money markets are pricing in a 33% chance of a rate cut in November.
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Money markets have raised their bets on the prospect of more Federal Reserve cuts.
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Money markets further trimmed their expectations for interest rate cuts in the euro zone.
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The LIBOR/OIS spread is seen as a gauge of stress in money markets.
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Money markets see about a 50% chance of an ease over the same period.
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Money markets are already starting to price in a rate cut later this year.
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That can interfere with the normal functioning of money markets and bring unintended consequences.
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Money markets have cut their bets on rate cuts by the Bank of England.
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Money markets currently predict a rate hike next month and another two next year.
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Money markets price in at least two rate cuts of 25 basis points this year.
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Nearly three cuts are priced in the money markets by the end of this year.
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Savers will also be helped, as interest rates on Treasurys and money markets edge higher.
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It is hardly a mystery, on this view: central banks have rigged the money markets.
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A: Fed funds and Eurodollars (money markets) are very volatile and kind of manic depressive.
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Money markets are pricing in a strong chance of a cut in Australia this year.
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Draghi's statement saw euro zone money markets pushing up bets on next year's rate hikes.
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Money markets broadly expect one rate cut by October followed by another by January 2020.
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The money markets dried up as banks became too scared to lend to each other.
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Money markets, meanwhile, cut their bets on a September 2019 rate rise by the ECB.
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Retail investors alone have pushed $324 billion into money markets in 2019, a 32% jump.
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Meanwhile, money markets expect a rate cut from the Federal Reserve as early as December.
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The US Federal Reserve, for example, said it would enhance liquidity for critical money markets.
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Money markets expect the central bank to ease rates by the end of the year.
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Cash reserves are short-term instruments such as checking, savings, money markets, and CDs, etc.
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Money markets see about a 60% chance that the central bank would ease by April.
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Money markets put the chances of a UK interest rate cut as soon as Jan.
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The Fed began snapping up securities after a tumultuous episode in money markets last year.
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But analysts say that the deposit rate cannot go much lower without distorting money markets.
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|
Money markets factor in some 25 basis points worth of deposit rate cuts for 2016.
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It was the Fed's first such surprise intervention in money markets since the financial crisis.
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|
Money markets are currently pricing in an 84% chance of such a cut this month.
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|
Money markets see about a 45% chance that the central bank will ease by April.
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|
Money markets see about a 40% chance that the central bank would ease by April.
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|
Early last year, money markets had bet on the ECB raising interest rates in 2020.
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Money markets expect the central bank to leave its benchmark interest rate unchanged at 1.75%.
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|
NOT ALARMING YET Concerns over problems in money markets spreading have been muted so far.
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"We can confirm that this is EMMIs (European Money Markets Institute) intention," Schirmann said on Friday.
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|
Money markets price in at least two U.S. rate cuts of 25 basis points this year.
|
|
Money markets expect the Bank of Canada to cut interest rates less than the Federal Reserve.
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|
Money markets are pricing in a 45% chance of a 10 basis point cut on Thursday.
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|
Money markets see chances of an interest rate hike this year at less than 20 percent.
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|
Money markets are pricing in an 80 percent probability of one interest rate hike next year.
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|
Money markets currently price in the first hike to the ECB's deposit rate in September 2019.
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The current BI's benchmark rate is 6.75 percent and it is not tied to money markets.
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|
Money markets are pricing in a 286.10-basis-point cut by June 20.2, Refinitiv data showed.
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In 2017, the central bank drained 65 billion yuan on a net basis from money markets.
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The rise in CP rates coincides with rising borrowing costs in other areas of money markets.
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|
Money markets are pricing in a 95 percent chance of such a rise at the Dec.
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Money markets have increased their bets on the prospect of more Federal Reserve interest rate cuts.
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If we experience another episode in money markets we have the tools to address those pressures.
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Money markets now broadly expect one rate cut by October followed by another by January 2020.
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Money markets had previously priced in one hike - from current levels of 0.75 percent - before December 2019.
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|
The re-pricing in money markets came as sterling fell sharply and British government bond yields tumbled.
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|
Another rate rise is now only fully priced by May next year, according to UK money markets.
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|
Money markets are pricing in a 99 percent probability of borrowing costs not being altered on Wednesday.
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|
Both banks have comfortable liquidity cushions, manageable refinancing schedules and established access to capital and money markets.
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|
To lend, they would have to get funds from money markets or borrow from the central bank.
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|
Money markets are pricing in a 25 basis-point interest rate cut by the BoE by January.
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|
Money markets are pricing in a 50% chance of one rate hike until the end of December.
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|
Following the ECB meeting, money markets pushed back expectations for a first rate hike to late 2020.
|
|
Some traders have blamed the shrinkage in the Fed's bond holdings for recent turbulence in money markets.
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|
Nearly two interest rate cuts of 297.309 basis points are priced in by money markets for 2019.
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|
Presently, money markets give a 68% chance of a one quarter point rate cut by end-December.
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|
Bank borrowing rates have also moved up because there are few big lenders in key money markets.
|
|
Money markets see chances of the central bank cutting interest rates next month at less than 20%.
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Money markets see chances of the central bank cutting interest rates next month at less than 20%.
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|
Finally, it forecast more volatility in repo and money markets and FX swaps as year-end approaches.
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|
That is down from a more than 90 percent chance priced in by money markets on Thursday.
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|
Money markets currently price in a 44 percent chance of a 25 basis point hike in August.
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|
Presently, money markets price in an interest rate cut by the Bank of England before May 2020.
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|
Setting the repo rate close to money market rates, however, may reduce lending activity in money markets.
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|
Money markets forecast a almost 50% probability of a cut at an upcoming meeting on Jan. 30.
|
|
In response to the turmoil, the Fed injected stimulus into money markets to pull rates back down.
|
|
Money markets have also priced in cuts by the European Central Bank and the Bank of England.
|
|
It seems like concerns over tightness in short term money markets have subsided for the time being.
|
|
Money markets were still pricing in about a 70 percent chance of a rate hike in December.
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|
Though government-provided deposit insurance now protects against this hazard, it did not extend to money markets.
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|
Over the same period, money markets see about a 50% chance the central bank would cut rates.
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|
A payable-on-death agreement is valid for bank accounts such as checking, savings or money markets.
|
|
That stable price makes money markets highly liquid, because shares can be bought or sold for $21.22.
|
|
One factor holding back institutional investors is access to yuan funds in China's relatively young money markets.
|
|
Money markets expect at least two rate cuts from the U.S. Federal Reserve over the same period.
|
|
Money markets show investors see virtually no chance of a rate hike until at least mid-2020.
|
|
Ancillary businesses such as Islamic securities services would also benefit, as well as Islamic money markets, he said.
|
|
TransferWise's rapid growth has been fueled by one of the world's most important, and most unglamorous, money markets.
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To view a graphic on Money markets push back bets on timings of ECB rate hikes, click: reut.
|
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Equity-focused mutual funds last week took in $6.5 billion while money markets saw $3.6 billion come out.
|
|
Money markets are pricing in a 21.2491% chance of a 227 basis point cut on Thursday's ECB meeting.
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Money markets are pricing in a 60 percent chance of a 25 basis point rate rise in September.
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|
Nearly two ECB interest rate cuts of 10 basis points are priced in by money markets for 2019.
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|
The Federal Reserve may ultimately have to raise interest rates more than money markets currently expect, he said.
|
|
Money markets price just a 30 percent chance of a 10 basis point ECB rate hike in 1.93.
|
|
Money markets, based on sterling overnight indexed swaps, were pricing in a rate cut in August or September.
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|
Money markets are pricing in a 21.2479% chance of a 1.23823 basis point cut on Thursday's ECB meeting.
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|
The PBOC did not say in its statement whether it had drained funds from money markets on Tuesday.
|
|
Euro zone money markets too priced out chances of a year-end rate cut Writing by Tommy Wilkes
|
|
Euro zone money markets show a September rate cut by the European Central Bank is fully priced in.
|
|
Money markets moved to price in about a 20 percent chance of an interest rate cut by September.
|
|
Money markets are a traditional safe haven for investors, so outflows often signal a willingness to take risk.
|
|
It also saw inflation expectations fall to new lows, and prompted money markets to slash rate hike expectations. .
|
|
Money markets showed that a 10-basis point rate cut is now being fully priced in by investors.
|
|
Signs of stress were everywhere as global central banks resumed their efforts to keep money markets functioning normally.
|
|
Money markets are pricing in 15 basis points of rate cuts at the next ECB meeting on Sept.
|
|
Money markets currently price a roughly 60% chance of a 25 basis point interest rate cut by December.
|
|
Also, as the Fed adjusts its balance sheet, that tends to have a restrictive impact on money markets.
|
|
Money markets factor in some 25 basis points worth of deposit rate cuts from the ECB this year.
|
|
Money markets are not fully pricing in a 25 basis-point increase by the BoE until November 2019.
|
|
For China, it means a weaker yuan, capital outflows, potentially slower economic growth and liquidity stress in money markets.
|
|
Money markets now see a only around a 60% chance of a 25 basis point cut in December 2020.
|
|
Money markets expect much less easing this year from the Bank of Canada than from the U.S. Federal Reserve.
|
|
SHANGHAI (Reuters) - China's central bank will inject 150 billion yuan ($22.67 billion) into money markets on Tuesday, traders said.
|
|
Money markets are pricing in around 18 basis points worth of rate cuts by the end of the year.
|
|
SHANGHAI (Reuters) - China's central bank will inject 80 billion yuan ($11.59 billion) into money markets on Tuesday, traders said.
|
|
Money markets now see an 80 percent chance that UK interest rates will have gone up by March 2018.
|
|
Money markets are are 4033% priced in for three rate cuts of 25 basis points each by next March.
|
|
Money markets are pricing in at least 300 basis points, while a Reuters poll of economists reckons 250 bps.
|
|
Money markets price a growing chance the Fed will cut rates by half a point at its September meeting.
|
|
Greece is keen to tap money markets in a test run before its latest bailout expires in August 2018.
|
|
Money markets are now pricing in a 60 percent chance of a 25 basis point rate rise in September.
|
|
The September repo rate spike abated as the Fed pumped cash into money markets and swap rates also eased.
|
|
Money markets now suggest around a 68 percent chance of a 20133 bps ECB rate hike in September 2019.
|
|
The difference between Libor and OIS is seen as a gauge of the availability of dollars in money markets.
|
|
When that debt was found to be toxic, money markets stepped back, helping to trigger a global credit crunch.
|
|
The goal was to keep cash flowing smoothly so that borrowing costs in money markets would stay under control.
|
|
The backstop is supported by $10 billion from the Treasury Department and aims to boost liquidity in money markets.
|
|
The support for money markets is the flip side of that program; money market funds invest in commercial paper.
|
|
But I'm also a CEO and these tweets are about work: the company, money, markets, customers, earnings, guidance, etc.
|
|
In Britain, money markets are pricing in a 25-basis-point cut to the current 0.75% rate by August.
|
|
The uncertain climate is keeping investors from making bets in the country's stock and money markets, sending volumes plunging.
|
|
Money markets are fully pricing in such a move as well as further 10 bps cut by July or September.
|
|
The BoE's code of conduct covers London money markets, including sterling and foreign currency deposits, repo markets and securities lending.
|
|
Money markets are now pricing in around a 40% chance of a 10-basis-point rate cut by the ECB.
|
|
Money markets currently see a 60% chance of a December cut and almost fully price in a move in January.
|
|
Money markets in the euro zone are fully pricing in a rate rise from the ECB by July next year.
|
|
The People's Bank of China (PBOC) injected a massive net 840 billion yuan ($126.70 billion) into money markets over Oct.
|
|
Euro zone money markets are almost fully pricing in a 10-basis-point rate cut at the ECB's September meeting.
|
|
Money markets have priced in an ECB rate cut of 10 basis points in September and another one in March.
|
|
Money markets have priced in an ECB rate cut of 9.37693 basis points in September and another one in March.
|
|
Money markets see about a 50 percent chance of an interest rate cut this year by the Bank of Canada.
|
|
Money markets no longer anticipate a rate rise in 2018 and many economists do not expect a hike until 2019.
|
|
Money markets and yuan have been steady but Hong Kong-listed stocks have seen heavy selling by mainland investors .HSCE.
|
|
Euro zone money markets are now not fully pricing in an interest rate rise from the ECB until October 0.13.
|
|
Money markets have priced in an ECB rate cut of 21.2565 basis points in September and another one in March.
|
|
Money markets are now pricing in an 88% chance of a 10-basis-point hike at the ECB's September meeting.
|
|
Euro zone money markets had been betting on the ECB raising interest rates from ultra-low levels mid-next year.
|
|
Money markets price in a growing chance the Fed will cut rates by half a point at its September meeting.
|
|
Money markets now price roughly a 90 percent chance that the ECB will hike rates by July next year ECBWATCH.
|
|
The renewed uncertainty caused money markets to reduce expectations that the Bank of England would raise interest rates in 2019.
|
|
Money markets show around an 80 percent chance of a move in December — up from 60 percent a week ago.
|
|
Money markets are pricing in a 25 basis point rate cut by the BoE by the end of January 2020.
|
|
Money markets have priced in an ECB rate cut of 26.8742 basis points in September and another one in March.
|
|
Money markets are pricing in around an 80-percent chance that the ECB will hike rates over the next year.
|
|
Money markets and bond markets are expecting monetary policy to lower the target rate, certainly in September, probably October, too.
|
|
Money markets price a cut by July; by end-29 they reckon the Fed will have cut twice at least.
|
|
Markets may be more cheerful today, but keep an eye on credit spreads and money markets the panic isnt over.
|
|
Money markets are pricing in a 33% chance of a further 25 basis point BoE interest rate cut next week.
|
|
In the UK, money markets are pricing in a 25-basis-point cut in the current 0.75% rate by August.
|
|
Money markets are pricing a 70% chance of the bank will cut its 0.75% policy rate by a quarter point.
|
|
In the UK, money markets are pricing in a 25-basis-point cut in the current 0.75% rate by August.
|
|
Recent volatility in U.S. money markets raised concern the Fed's balance sheet became too small, leaving banks with inadequate reserves.
|
|
Banks and investors called it the most serious disturbance in the U.S. money markets since the 2008-2009 financial crisis.
|
|
He was referring to the central bank's recent intervention in money markets by offering daily repurchase agreement - or repo - operations.
|
|
The rupture spilled over to other important money markets, lifting the Fed's key interest rate briefly above its targeted range.
|
|
Money markets are pricing in about an 80% probability of another U.S. rate cut by the end of the year.
|
|
The MLF is a supplementary policy tool it uses to manage liquidity conditions in the banking system and money markets.
|
|
What's happening: U.S. money markets fell into chaos this week as risk-free overnight interest rates spiked to almost 10%.
|
|
Money markets price a cut by July; by end-2019 they reckon the Fed will have cut twice at least.
|
|
Money markets fully priced in a 20.12 basis point cut in the ECB's deposit rate by the end of the year.
|
|
He has helped lay out the framework on how to manage the Fed's balance sheet and the plumbing of money markets.
|
|
Money markets are fully pricing in such a move as well as a further 10 bps cut by July or September.
|
|
Hacking activities include the penetration of national infrastructure systems, and money markets, and the stealing of state secrets and intellectual property.
|
|
Money markets expect just 14 basis points of tightening next year, down from 43 basis points before the December policy announcement.
|
|
Money markets are currently assigning a 50% probability of a 10 basis points rate cut next week at a scheduled meeting.
|
|
Money markets, although sometimes volatile, are not predicting such a dramatic move, instead pointing to a fall to 22-23 percent.
|
|
Optimism that a Brexit deal would be finalised saw money markets reduce expectations of rate cuts from the Bank of England.
|
|
The central bank poured funds into money markets ahead of a seasonal surge in cash demand at the end of June.
|
|
Bank Negara and the securities commission said conditions in the country's capital, foreign exchange and money markets continued to be orderly.
|
|
Another increase next month is widely expected, but money markets are only fully pricing in one quarter-point hike next year.
|
|
After the central bank suspended repo auctions and tweaked reserve requirements on Thursday, money markets were pricing in steady rate hikes.
|
|
Money markets see about a 25% chance that the central bank will ease at its next interest rate decision on Sept.
|
|
The PBOC also injected a net 30 billion yuan into money markets on Thursday through seven-day reverse bond repurchase agreements.
|
|
Money markets are currently only fully pricing in a 25 basis-point hike from the Bank of England by December 2019.
|
|
Since August, money markets have gone from pricing this year's third 226 basis point RBI rate hike to pricing a fourth.
|
|
Money markets now suggest there is only a 75 percent chance of a 10 bps ECB rate hike in September 2019.
|
|
In the short term, however, Japanese lenders will be unable to raise enough from deposits to replace the U.S. money markets.
|
|
Since that day, sterling has lost 1.6% and money markets now fully expect a quarter-point rate cut by February 2020.
|
|
Euro zone money markets give a 60% chance of a 20 basis point cut in the deposit rate from minus 0.4%.
|
|
Money markets now price in a roughly 56% chance of a rate cut in January, compared with 49% before Wednesday's data.
|
|
I felt nervous about what was going on in the money markets, and I asked a friend to help me out.
|
|
That will include a net $22019 billion to shore up money markets as well as looser borrowing terms for Chinese companies.
|
|
Money markets see about a 40% chance of an interest rate cut by December, down from about 90% one month ago.
|
|
On Tuesday, he announced that the Fed would begin its bond-buying program again to help relieve stress in money markets.
|
|
Banks fund themselves on a short-term basis via demand deposits, but also on money markets, such as that for repos.
|
|
Harker also addressed the recent volatility in money markets, saying that he doesn't think it has wider implications for the economy.
|
|
He has extensive experience in global financial markets and oversaw trading in US government securities, mortgages, money markets, and municipal bonds.
|
|
On Thursday, the central bank also removed an unspecified amount of liquidity from the money markets via a seven-day repo.
|
|
On Wednesday, the PBOC injected a total of 200 billion yuan ($28.41 billion) into money markets through reverse bond repurchase agreements.
|
|
The Hong Kong Monetary Authority (HKMA) said on Thursday that the city's foreign exchange and money markets continue to operate smoothly.
|
|
His father is a vice president for money markets in the New York office of ICAP, a British financial services company.
|
|
On one hand, the Fed sapped liquidity out of money markets and contributed to the September spike in short-term rates.
|
|
Next week, BI launches a new benchmark for overnight interbank money markets, called Indonia, mirroring euro zone's and Britain's Eonia and Sonia.
|
|
If you want safety in a low-yield environment, your options are cash equivalents — CDs, money markets, savings accounts and the like.
|
|
Money markets price roughly a 40 percent chance of a 10 bps hike by year-end, versus 70 percent earlier this month .
|
|
Money markets are pricing in a 70 percent probability of another UK rate rise by May, compared with virtually nil in January.
|
|
Euro zone money markets now fully price in a 10 bps rate cut from the European Central Bank within the next year.
|
|
"The market has interpreted the decision of the central bank positively," said Sergey Romanchuk, head of forex and money markets at Metallinvestbank.
|
|
Money markets are pricing in a cumulative 67 basis points of rate cuts from the Fed by the end of the year.
|
|
While the Fed raised interest rates in December and signaled it would stay the course on policy tightening, money markets reckon otherwise.
|
|
But while the Federal Reserve has projected at least two more hikes, money markets imply a quarter-point cut by mid-2020.
|
|
Money markets now do not expect a BOE rate rise this year and are starting to price out 2020 hikes as well.
|
|
One more hike next year is no longer fully discounted by money markets, as the economic cycle comes closer to rolling over.
|
|
However, a spike in trade tensions again pushed money markets to bet the Fed and the ECB will cut rates next month.
|
|
Only one quarter point rate hike next year is fully discounted in money markets, compared with two a couple of months ago.
|
|
But that was during the global crisis, when emergency measures by central banks and a freezing up of money markets influenced rates.
|
|
Money markets price roughly a 40 percent chance of a 10 bps hike by year-end versus 70 percent earlier this month .
|
|
Presently, money markets give a 60% chance of a one quarter point rate cut by end-December compared to 68% on Tuesday.
|
|
That is despite the government front-loading its spending for the year and the RBI injecting significant cash into the money markets.
|
|
European money markets have fully priced in a further 10 bps cut in the ECB's deposit rate for March to -0.40 percent.
|
|
While the Fed itself still projects at least two more hikes, money markets now imply a quarter-point cut by mid-2020.
|
|
Powell's semi-annual testimony could either confirm those views or encourage money markets to scale back their rate cut views even further.
|
|
Money markets show investors expect a 10 basis-point cut in the deposit rate to -0.50% in the first cut since 2016.
|
|
Money markets are fully pricing in a further 10-basis-point cut by the European Central Bank when it meets on Thursday.
|
|
Money markets are now pricing in a 49% chance of a rate cut later this month, compared with just 20% on Friday.
|
|
The PBOC usually pumps more funds into money markets at the Lunar New Year, China's biggest holiday, when demand for cash surges.
|
|
The huge shift in money markets also stemmed the flight of capital out of Asian and commodity currencies and in to dollars.
|
|
Based on overnight index swaps, money markets now price in a roughly 14% chance of a rate cut at the BoE's Jan.
|
|
Money markets are pricing in around a 70% chance that the bank will cut its 0.75% policy rate by a quarter point .
|
|
Durability of deposits, which include CDs, interest-bearing checking, savings, and money markets/sweeps, in a rising interest rate environment remains unproven.
|
|
Money markets pricing suggests less than a 50 percent chance of a hike over the next year, according to CME's FedWatch tool.
|
|
Money markets are still pricing in about 70 percent chances of a rate hike in December, even after the FBI's new probe.
|
|
The Ugandan shilling is expected to firm on the back slumping importer demand and removal of excess liquidity from the money markets.
|
|
The Fed said it would conduct a second repo transaction Wednesday to inject up to $75 billion in cash into money markets.
|
|
Some money markets depending on those maturing Treasury payments close to a shutdown seem to have decided to sell those holdings early.
|
|
This time, however, rather than working behind the scenes, the central bank telegraphed its intentions to the money markets more clearly, traders said.
|
|
The latest minutes sparked a dramatic selloff in the money markets that caused a sharp spike in key short-term rates on Thursday.
|
|
Money markets are pricing in roughly an 210 percent chance the ECB will cut its deposit rate by 23 basis points in March .
|
|
Money markets expect the U.S. Federal Reserve to raise interest rates two times this year compared to a Fed forecast of three times.
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Money markets price roughly a 29 percent chance of a 10 bps hike by year-end versus 70 percent earlier this month. 3.
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Markets, of course, will join the administration's screams for more money on top of a huge $256 trillion liquidity in U.S. money markets.
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Money markets are now pricing in a 15% chance of a rate cut in December versus a zero chance before the ECB meeting.
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Money markets have whittled down the odds of an interest rate hike from the European Central Bank by June 2019 to 75 percent.
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This rate is calculated using fed funds and certain Eurodollar transactions, intended as a broader measure on unsecured borrowing in U.S. money markets.
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Money markets see about a 60% chance that it will ease Canadian government bond yields rose across a steeper yield points to 1.310%.
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Money markets, which as recently as November had been pricing in three further increases from the central bank, now see no additional tightening.
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The PBOC injected 170 billion yuan ($25.86 billion) into the money markets through seven-day reverse bond repurchase agreements on Friday, traders said.
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Money markets are pricing in three rate cuts before year-end and are betting on as many as five cuts through mid-250.
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The Kenyan shilling is expected to remain under pressure from increased dollar demand in the energy sector and excess liquidity in money markets.
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Money markets moved to price in a 100% chance of a 10 basis point rate cut by the ECB at its next meeting.
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A speech by BoE Governor Mark Carney this week convinced money markets to price in a rate cut over the next 12 months.
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This rate is calculated using fed funds and certain Eurodollar transactions, intended as a broader measure of unsecured borrowing in U.S. money markets.
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This rate, calculated using fed funds and certain Eurodollar transactions, is intended as a broader measure of unsecured borrowing in U.S. money markets.
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In turn, this has underpinned the US dollar and money markets with last week's inflows running at the same rate as last December.
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European money markets, meanwhile, have pushed back expectations of a rate increase and no longer fully price in an rise until October 2019.
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Societe Generale's Simpson added that money markets now priced in only about a 10 percent chance of an interest rate cut in November.
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"However, all things considered it is important to note that British banks do not rely heavily on the U.S. money markets," they said.
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Money markets are pricing in three Fed rate cuts before year-end and are tipping as many as five cuts through mid-245.
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Money markets, which can only really give a solid guide over a two-year horizon, are not pricing any hike for four years.
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Traders said on Tuesday that the bank would inject 440 billion yuan into the money markets, the biggest daily injection in three years.
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Still, money markets expect the Bank of Canada to raise its key interest rate this week by 25 basis points to 1.75 percent.
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Money markets estimate an 80% probability that the ECB will lower its benchmark rate by 20 basis points when it meets next week.
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China's money markets were rattled after regulators took control of Inner Mongolia-based Baoshang Bank on May 24 due to "serious" credit risks.
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Money markets are now fully pricing in one 25 basis point cut in U.S. interest rates by April and three by March 2021.
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Money markets are now fully pricing in one 20.8 basis point cut in the Fed's rate by April and three by March 284.97.
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They know more about the economy's functioning, how it affects the money markets and the interest rate structure, far more than he does.
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Money markets are pricing in around a 60 percent chance of the U.S. raising interest rates in December, according to CME's FedWatch tool.
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The central bank has raised interest rates three times since July and money markets see a 75 percent chance of another hike by July.
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The island's stock market will be shut from Thursday, while its currency and money markets will remain open until the end of Friday's session.
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SHANGHAI (Reuters) - China's central bank will resume open market operations on Wednesday, injecting 70 billion yuan (8.06 billion pounds) into money markets, traders said.
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Hong Kong's currency and money markets have been rattled by the global turmoil as well as the special administrative region's economic ties to China.
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While expectations of a 25 basis point rate cut are baked into money markets, some investors are gunning for a 50 basis point cut.
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Money markets have moved swiftly since then to price a roughly 60% chance of a 10 basis-point cut at the July 25 meeting.
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The ECB meets on Thursday, with money markets pricing in a more than 50% chance of a 10 basis point cut in interest rates.
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Also lifting sentiment, China's central bank injected 300 billion yuan ($45.32 billion) into money markets on Wednesday, as Beijing moved to maintain market liquidity.
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"Since NAVs began floating, money markets have been calm," wrote the Office of Financial Research, which is charged with monitoring for system-wide risks.
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Money markets have moved swiftly since then to price a roughly 22019% chance of a 230 basis-point cut at the July 225 meeting.
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On Tuesday, the central bank injected 320 billion yuan ($49.69 billion) into money markets through 7-day, 14-day and 63-day reverse repos.
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Money markets no longer price in a 10 basis point cut in the ECB's deposit rate, currently at minus 0.40 percent, by year-end.
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It is the central bank's latest effort to provide more liquidity to money markets during a period of high volatility related to the coronavirus.
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Asset managers Kames Capital and Janus Henderson suspended dealings in their UK real estate funds while money markets continued to exhibit signs of stress.
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Money markets are pricing in a 72% chance the ECB will cut rates by 20 basis points on Thursday, lower expectations than last week.
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The municipal debt addition will "enhance the liquidity and functioning of crucial state and municipal money markets," the Fed said in its Friday statement.
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In terms of money markets and all that, look, the Fed has done a remarkable job of making sure there's liquidity in the system.
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Money markets are now fully pricing in a 20.6571 basis point cut in the Fed's rate by April and three by March next year.
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U.S. money markets are pricing in one rate cut by the third quarter, though the chance of a near-term move is seen slim.
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Money markets have started pricing in another 10 basis point cut to the ECB's already-negative interest rates by the end of the year.
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Money markets have now moved to price around three 25 basis point rate cuts from the U.S. Federal Reserve in the next 12 months.
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Money markets price in a 79% chance of an October Fed rate cut, according to the Fed Watch tool, down from nearly 90% recently.
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But money markets now see a greater-than 50% chance of a rate cut by April, up from about 20% before Wednesday's rate decision.
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If this were to occur, it may disrupt money markets and shake investor confidence in the Fed's ability to control short-term interest rates.
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A rate hike at the conclusion of the Federal Reserve's March 24-3.9 policy meeting is now a virtual certainty, according to money markets.
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Parts of the money markets had already begun to dry up with the demise of the US sub-prime mortgage market around February 2007.
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The weakening in the dollar was seen partly as a sign that central bankers have been successful in easing stress in the money markets.
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But bets for monetary easing at its July meeting remain high, with money markets pricing in 24 basis points of cuts from current rates.
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SHANGHAI (Reuters) - Three years ago, China's central bank engineered a cash crunch to force commercial banks to reduce their reliance on short-term money markets.
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Money markets have priced out a U.S. rate hike this year and are even pricing in a small probability of a rate cut in 2020.
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Both banks rely on wholesale funding, raised in the domestic and international capital and money markets in the form of bonds, loans and interbank deposits.
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Next year could be more of the same for mostly everything but U.S. dollars and short-term money markets, according to analysis from Goldman Sachs.
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Money markets upped their bets on an ECB interest rate cut, pricing in a 60% chance of one by year-end, versus 45% on Thursday.
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This means Islamic banks can find it difficult to access the money markets, and in particular, the interest-based liquidity tools offered by central banks.
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Money markets are wagering a rate cut might come very soon, with futures showing a 50-50 chance of a quarter-point easing in June.
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But money markets are still fully pricing in a 10 basis point rate cut by the European Central Bank, keeping downward pressure on bond yields.
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Money markets currently price in a 43 percent chance of a 25 basis point hike in August and barely one rate hike by end-2018.
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Following last week's ECB meeting, money markets have moved to fully price in a 10 basis point cut in the ECB's deposit rate in March.
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Money markets moved to price in a 100% chance of a 10 basis point rate cut by the ECB at its next meeting in September .
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By the time you hit your 50s, your asset allocation should start to include fixed income and money markets, the more stable kind of investments.
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While expectations of a 25 basis point rate cut are firmly baked into money markets, some investors are gunning for a 50 basis point cut.
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Instead of turning to the wholesale money markets when short of funds, a commercial bank's first port of call would be to its central bank.
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The central bank injected 22.6 billion yuan into money markets on Tuesday in an attempt to boost liquidity ahead of the Lunar New Year holiday.
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China's central bank will inject 340 billion yuan ($52.08 billion) into the money markets through seven-day reverse bond repurchase agreements on Thursday, traders said.
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China's central bank will inject 10 billion yuan ($1.53 billion) into the money markets through seven-day reverse bond repurchase agreements on Friday, traders said.
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Money markets have ruled out rate hikes for the remainder of the year with an 80-percent probability of a rate cut by early 2020.
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Analysts say the real focus lies with how money markets and money market mutual funds deal with the problem of diminished returns due to NIRP.
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Money markets are now pricing in roughly two U.S. rate cuts by the start of next year as trade worries weigh on the global economy.
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That would argue for more easing than the quarter-point reduction in interest rates by the BoE which money markets are pricing in for August.
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Prior to the release of the monthly GDP data, money markets were pricing in a 70 percent chance of a rate cut by year end.
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Contracts tied to the short-term rates at which banks lend to each other could also allow banks to hedge their exposure to money markets.
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Money markets are pricing in another 25 basis point cut at the next Fed meeting in March and a 50 basis point cut by April.
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Money markets have ramped up bets on a larger rate cut than initially expected, now pricing a 60% chance of a 20-basis-point cut.
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It remains unfazed by signs that money markets are pricing a U.S. Federal Reserve interest-rate cut later this year and possibly even a second.
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The U.S. and global economy was in shambles, and investors were sent to money markets as a way to protect capital when nothing seemed safe.
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Money markets see about a 20% chance of a Bank of Canada interest rate cut at the central bank's next policy meeting on Dec. 4.
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On Thursday morning, money markets were estimating an 11.61% chance of a rate cut at the Bank of Canada's next policy meeting on Dec. 4.
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After the meeting, euro zone money markets pushed back expectations of a 193-basis point hike to December next year, from October 2019 on Monday.
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Just as the threat of bank runs migrated from depositors to money markets, so systemic risk may now be building up in non-bank institutions.
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The ECB cut its depo rate a week ago and money markets do not fully price in another 10 basis point cut until next April.
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Islamic banks are restricted from most money markets and other interest-bearing funding tools offered by central banks, a potential disadvantage during a liquidity squeeze.
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Euro zone money markets currently price over a 90% chance that the ECB will deliver a 10 bps rate cut at its meeting next week.
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The PBOC also said it would use various monetary policy tools to stabilise money markets and boost banking system liquidity, but did not mention broader easing.
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The MLF is a supplementary policy tool the central bank uses to manage conditions and medium-term interest rates in the banking system and money markets.
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The government has responded by loosening its liquidity tap in money markets and speeding up infrastructure projects as it eyes expansionary fiscal policy to support growth.
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The Hong Kong Monetary Authority, the city's central bank, told Reuters on Wednesday that money markets and the local currency were operating in a normal manner.
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Money markets are now pricing in a 49 percent chance the Fed will cut rates this year, down from more than 61 percent before Powells remarks.
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Within shadow banking, the biggest growth area has been "collective investment vehicles," a term that encompasses many bond funds, hedge funds, money markets and mixed funds.
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Currently, money markets are pricing a euro zone rate rise in December 2019 but stuttering growth and Italy's crisis are starting to cast doubt on this.
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Money markets are wagering a rate cut might come very soon, with futures now showing a 50-50 chance for a quarter-point easing in June.
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But money markets have barely budged in their assessment that the Fed is set to cut rates by 100 basis points by the end of 2020.
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Weekly data from the Shanghai Stock Exchange shows money shifting into exchange traded funds (ETFs) tracking bonds, gold and money markets at the start of January.
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Money markets price in around a 45 percent chance of an ECB rate hike in early 2018, down from more than 50 percent earlier this week.
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Business journalists cover the institutions that influence our money – markets, business, and government – and report on the real-time data and information that affects our lives.
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You would expect the gap between what is offered to savers in banks and what can be earned online and in the money markets to close.
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That helps explain why the central bank is cranking up liquidity, putting a combined 330 billion yuan ($47.98 billion) into money markets on Monday and Tuesday.
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The lowest deposit rate set by the central bank acts as a floor for short-term interest rates in money markets and for borrowing rates generally.
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Between 2009 and 2011, when the average 12-month yield on money markets fell from about 2.27 percent to 0.02 percent, $1.1 trillion exited these securities.
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The central bank restarted one-week repo auctions for the first time since it put a pre-local election squeeze on money markets on March 22.
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Thereafter, banks would only be allowed to lend money they administer in savings accounts, or what they can get from money markets or the central bank.
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While money markets pared back expectations for upcoming rate hikes, equities sold off, suggesting some had been priced for a more prudent approach from the Fed.
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The greater stock of T-bills, which are often used as collateral for short-term borrowing in money markets, would enhance the liquidity of the sector.
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Money markets are pricing in another 46.483 basis-point cut at the Fed meeting on March 246.48-23.11, and a 242.79 basis-point cut by April.
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Money markets are pricing in another 24.72 basis-point cut at the Fed meeting on March 245.27-24.62, and a 241.28 basis-point cut by April.
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The Federal Reserve said it would add $500 billion to money markets on Thursday and inject $1 trillion every Friday through the end of March.5.
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Money markets now price in a near 70% chance of a Bank of England rate cut later this month in the face of a struggling economy.
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"Outside of the money markets, we suggest that investors put very little weight on the Fed's balance sheet actions," Harris said in a note to clients.
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The U.S. central bank began intervening in money markets in mid-September, when a shortage of cash led to a spike in short-term borrowing costs.
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Money markets now price in a near 70% chance of a Bank of England rate cut later this month in the face of a struggling economy.
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Offshore money markets have been tight all week, with the overnight yuan borrowing rate climbing on Tuesday to its highest level in more than three months.
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At Rabobank, Mr. Allen was the global head of liquidity and finance and supervised Mr. Conti, a senior money markets trader who made daily Libor submissions.
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But money markets — the places where businesses keep most of their cash — are much more important for a smooth-functioning economy than the stock market is.
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Still, money markets are pricing in a 95% probability of a 25-basis-point rate cut at the central bank's July 31 meeting, according to FedWatch.
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But money markets have cut the probability of a Bank of England December interest rate rise to around 55 percent, versus 62 percent a week ago.
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As the Italy budget row has continued, euro zone money markets have lowered their expectation that the European Central Bank will raise rates in September next year.
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The next increase is not fully priced into UK money markets until November, and doubt over the path of UK rates is being sowed in traders' minds.
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The Kenyan shilling is expected to remain under pressure due to excess liquidity in the money markets and dollar demand from sectors such as energy, traders said.
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SHANGHAI (Reuters) - China's central bank will inject 60 billion yuan ($9.22 billion) into the money markets through seven-day reverse bond repurchase agreements on Wednesday, traders said.
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While the drop in corporate debt demand from money funds has raised some short-term corporate borrowing costs, it was not disruptive for money markets, analysts said.
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During Martowardojo term, BI made the 7-day reverse repurchase rate its policy interest rate IDCBRR=ECI, replacing another rate that was not tied to money markets.
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This will be published by next October to replace the EONIA overnight rate, which like Euribor is published by an industry organization, the European Money Markets Institute.
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The European Central Bank meets on Thursday and money markets are pricing in a more than 21.03% chance of a 21 basis point cut in interest rates.
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The European Central Bank meets on Thursday and money markets are pricing in a more than 21.17% chance of a 21-basis-point cut in interest rates.
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While many economists expect a December ECB rate reduction, money markets do not price in even a slim chance of 10 basis point cut ECBWATCH before 2020.
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Money markets are now pricing in a roughly 21% chance of a 0.23 basis point rate cut next week, versus a 20.2% chance earlier in the week.
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So money markets now reckon there is a 62 percent chance of a rate rise by the end of 2019, up from 211 percent in mid-February.
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Money markets have ruled out any more rate hikes for the remainder of the year with an 80 percent probability of a rate cut by January, 2020.
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The bank also noted that the probability of a rate increase this year had risen to 50 percent from 24 percent in February, according to money markets.
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Money markets are now pricing in a roughly 21% chance of a 23 basis point rate cut next week, versus a 21% chance earlier in the week.
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Money markets are now pricing in a roughly 60% chance of a 10-basis point rate cut next week, versus a 40% chance earlier in the week.
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That is a control of monetary policy pure and simple, because currency interventions are executed by increasing or withdrawing the quantity of yuan in China's money markets.
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MOST PEOPLE have—mercifully—not had to think about the money markets since the financial crisis, when obscurities such as LIBOR briefly became part of the discussion.
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Banks in future would be able to lend only money they administer in savings accounts, or what they can get from the money markets or the SNB.
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As for interest paid on checking or savings accounts, money markets and certificates of deposit: That amount also technically should increase as the federal funds rate does.
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What we now call the global financial crisis got its start in mid-2007, as losses on mortgage-related securities mounted and global money markets froze up.
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Since September, when an obscure but crucial corner of money markets experienced unusual volatility, the Fed has been temporarily intervening in the market to keep it calm.
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While investors have waited on the White House to bring forth fiscal relief, the Federal Reserve has unleashed a salvo of policy tools to ease money markets.
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The disruption spilled over into other money markets, temporarily pushing the Fed's policy interest rate, the fed funds rate, above the range policymakers had set for it.
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The disruption spilled over into other money markets, temporarily pushing the Fed's policy interest rate, the fed funds rate, above the range policymakers had set for it.
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This rate, which debuted on Tuesday, is calculated using fed funds and certain Eurodollar transactions, intended as a broader measure of unsecured borrowing in U.S. money markets.
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The MLF is a supplementary policy tool the central bank uses to manage liquidity conditions and medium-term interest rates in the banking system and money markets.
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Euro zone money markets are now pricing in around a 50% chance that the European Central Bank will cut interest rates by 10 basis points in July.
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"We're seeing a flight to safety here, money leaving equities, a lot of money going to money markets," Pat Keon, senior research analyst for Lipper, told Reuters.
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So money markets now reckon there is a 249 percent chance of a rate rise by the end of 26, up from 19.93 percent in mid-February.
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This rate, which debuted last Tuesday, is calculated using fed funds and certain Eurodollar transactions, intended as a broader measure of unsecured borrowing in U.S. money markets.
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In normal circumstances, there should be no difference between the implied interest rate of borrowing dollars in these markets and the borrowing cost in U.S. money markets.
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Separately, the Dutch bank is cutting more than 35 people in its loan syndication, corporate finance, debt capital markets and money markets businesses, IFR revealed last week.
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Euro zone money markets anticipate a 10 basis point cut in the ECB's deposit rate in September and expectations for another round of asset purchases are building.
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Euro zone money markets on Friday showed around an 80 percent chance that it could be lifted in December, up from a 60 percent chance a week ago.
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Share prices slid on Thursday, not in response to the reassurances of Chinese officials but rather to a spike in short-term interest rates in Chinese money markets.
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SHANGHAI, Jan 4 (Reuters) - China stocks rallied across the board on Wednesday, extending Tuesday's gains, as improving liquidity in money markets and moderating interest rates lifted market sentiment.
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For this year alone, economists now expect three to four Fed hikes, while money markets, which have consistently been more conservative than forecasters, expect two to three increases.
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Foreign central banks have used this arrangement to help their local financial institutions during episodes of strains in money markets when investors are reluctant to lend their dollars.
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Money markets raised expectations of a 10 basis point rate cut by the European Central Bank at a policy meeting next week to 36% from 30% last week.
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Money markets are now pricing in around a 53% chance of a 10-basis-point rate cut by the ECB, with a cut fully priced in for September.
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Money markets have trimmed bets on a 10-basis-point deposit rate cut, but analysts expect dovish guidance and possibly more generous terms for planned multi-year loans.
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The policymaker also said that Fed officials are still evaluating solutions for improving liquidity in money markets and studying why reserves are not circulating within the banking system.
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The policymaker also said that Fed officials are still evaluating solutions for improving liquidity in money markets and studying why reserves are not circulating within the banking system.
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Powell's newly dovish-sounding rhetoric has prompted money markets to price out Fed rate rises in 2019 but the producer price index due Jan 22 could be key.
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"Provisional fundraising on the regional and international money markets is up to 1,428.9 billion CFA francs," Moussa Sanogo, secretary of state in charge of the budget, told parliament.
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Also pressuring money markets, traders say, is the PBOC's campaign to push interbank lending into longer, higher interest rate tenors to combat growing leverage in the bond market.
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The Bank of England is expected to keep interest rates on hold this week but money markets are fully pricing in a rate cut by end-January 2020.
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Money markets now price in almost a 60% chance of a 10 bps cut in the ECB depo rate next week, up from around 40% earlier this week.
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Investors were already struggling with a shortage of short-dated bonds - used as collateral to borrow in money markets - before the changes, and this is expected to worsen.
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The darkening outlook for Britain's economy was reflected in the money markets, where investors no longer expect an interest rate increase by the Bank of England next year.
|
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The Fed has already slashed interest rates to zero, added $83 trillion in daily repo operations, and created facilities to help commercial paper, money markets and municipal debt.
|
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Money markets expect the Fed to cut interest rates next Wednesday, but they have been scaling back the amount of additional easing they see over the coming year.
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MONEY MARKETS Japan's Nikkei had closed 0.713% down, however, after short-covering ran its course and the yen firmed on the dollar, though South Korea's Kospi rose 20.71%.
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Money markets show the Fed, which already stunned investors with a surprise 50 basis point rate cut last week, is likely to ease policy further in the future.
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The Norwegian crown hit a fresh record low of $0.13.. Signs of stress were everywhere as global central banks resumed their efforts to keep money markets functioning normally.
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Now that rates are moving downward and people are moving funds around, rather than parking them in money markets, there's an opportunity to have a mismatch in funds.
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Euro zone money markets attach a more than 60% chance of a 10 bps rate cut by the ECB by July, up from around 35% a week ago.
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Money markets now price roughly two 25-basis-point rate cuts by the Federal Reserve and expect a 10 bps cut by the European Central Bank by December.
|
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Euro zone money markets priced in a greater probability of an interest rate cut by the European Central Bank by end-2020, a further reflection of economic concern.
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Global equities saw their greatest outflow in three years in 2019, at $143 billion, while money markets and bonds saw record inflows, according to a note from Jefferies.
|
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Traders expect the policy rate to fall below 13% in the next three months, and toward 12% in six months time, according to money markets pricing on Tuesday.
|
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The bank also noted the probability of a rate increase this year had risen to a current 50 percent from 24 percent in February, according to money markets.
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Money markets have in recent months priced out the chances of near-term rate cut and are positioned largely for the ECB to keep rates unchanged next year.
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Like their peers across the world, euro zone money markets have significantly ramped up their bets on a rate cut from the European Central Bank since last week.
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My thought bubble: The Fed's traders could probably have told Treasury's liability-management team that the timing of their bond issues would be problematic for the money markets.
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The Dutch bank, however, is cutting more than 35 people in its loan syndication, corporate finance, debt capital markets and money markets businesses, IFR revealed earlier this week.
|
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Non-bank or "shadow bank" finance refers to credit generated outside banks, such as by collective investment vehicles, broker-dealers and funds that invest in bonds and money markets.
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Interest rate futures implied traders see less than one rate increase from the Fed in 2019, compared with previous expectations for possibly two rate hikes, according to money markets.
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Interest rate futures imply traders see less than one rate increase from the Fed in 2019, compared with previous expectations for possibly two rate hikes, according to money markets.
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Non-bank or shadow banking firms generate credit outside traditional lenders, by means such as collective investment vehicles, broker-dealers or funds that invest in bonds and money markets.
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China's central bank injected 20203 trillion yuan ($22020 billion) into money markets as it attempts to limit the damage from travel curbs and business shut-downs on the economy.
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By the end of the year, money markets are 78% positive that the target Fed funds range will be 50-2200 basis points lower than the current 24-210%.
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Will they raise rates twice again this year and three times next, as money markets suggest and policymakers themselves have indicated, if emerging markets are crumbling round their ears?
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Indeed, while money markets appear to have pushed back expectations for the first ECB rate hike in this economic cycle, they are still anticipating a move before most economists.
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Money markets are now not pricing in an interest rate increase until mid-2020 ECBWATCH while inflation expectations are close to the lowest level since June 2017. EUIL5YF5Y=R.
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Officials from Chair Jerome Powell down now suggest rates may be close to "neutral", and money markets no longer fully price even one quarter-point rate hike in 2019.
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The yen briefly retreated from Monday's highs after China injected an estimated $20 billion into money markets in a stability effort after Monday's alarming 0.53-percent drop in stocks.
|
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Money markets price in a 10 basis point cut in the ECB's minus 0.40% deposit rate in September and a further cut is priced in by next March ECBWATCH.
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Money markets have all but fully priced in a quarter point cut on Thursday in the BoE's main rates, at a record low of 0.5 percent since March 2009.
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A surge in U.S. Treasury borrowing concentrated in short-dated maturities, after Congress lifted the debt ceiling recently, has sent borrowing costs higher across fixed income and money markets.
|
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The yen briefly retreated from Monday's highs after China injected an estimated $20 billion into money markets in a stability effort after Monday's alarming 7 percent drop in stocks.
|
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Money markets continued to price in a 10 basis point rate rise in early 2019, although expectations for a hike as early as this December have been scaled back.
|
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By the end of the year, money markets are 23% positive that the target Fed funds range will be 20123-22012 basis points lower than the current 21980-21980%.
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However, the HKMA has been intervening intermittently in the money markets by selling exchange fund (EF) bills to soak up excess cash and put a floor under HIBOR rates.
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U.S. money markets are also pricing out any chance of the Federal Reserve raising interest rates in the coming 12 months, suggesting a tempering of the dollar's yield allure.
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Lenders would have to go to the money markets, other banks or the SNB for funding because they could no longer use customers' current account deposits to finance loans.
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Underlining the concerns about market stability, the central bank intervened in money markets last week, worried that lenders were too dependent on short-term funds to finance bond positions.
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Money markets have priced in as much, ruling out rate hikes for the remainder of the year, with an 1.33 percent probability of a rate cut by January 2020.
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Indeed, the PBOC drained a net 465 billion yuan from the money markets through open-market operations from the beginning of the year until November 10, Reuters calculations show.
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That would raise the risk that dealers or investors could horde bonds, which are prized as collateral in money markets, with no risk of being penalized for doing so.
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The main thrust of the symposium was that few – if any – have a clear idea of how money markets, QE, and regulation interact with each other in today's world.
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Such reminders of potential disruptions to the "plumbing" of money markets, best exemplified during the 103 financial crisis, have regulators on guard for anything that could trigger a repeat.
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Still, money markets are pricing in a 94% probability of a 25-basis-point rate cut at the Fed meeting on July 31, according to CME Group's FedWatch tool.
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The yen briefly retreated from Monday's highs after China injected an estimated $20 billion into money markets in a stability effort after Monday's alarming 7-percent drop in stocks.
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He said liquidity concerns also eased somewhat as China's central bank injected 100 billion yuan into money markets on Monday after skipping open market operations for six trading days.
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But Fed officials were recently concerned the funds rate is rising more quickly than expected, causing a tightening in money markets, according to the minutes from its last meeting.
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No surprise then, that money markets have scaled back expectations of a rate rise and even started to factor in the risk of a rate cut this year. 2.
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Money markets have increased to more than 80% the probability that the European Central Bank will cut its benchmark rate by 9.83.99 basis points when it meets next week.
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Money markets have increased to more than 80% the probability that the European Central Bank will cut its benchmark rate by 9.83.84 basis points when it meets next week.
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Money markets are pricing in three Fed rate cuts before year-end, starting with the next meeting in July, and tipping as many as five cuts through mid-2020.
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LONDON, March 9 (Reuters) - Euro zone money markets ramped up their bets on rate cuts from the European Central Bank on Monday as inflation expectations in the region collapsed.
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Money markets see it as likely that the Bank of Canada will ease in April by 50 basis points, which would match the size of last week's rate cut.
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Money markets are positioned for a 20.635 basis-point rate cut at next week's ECB meeting following a 210 bps emergency cut from the U.S. Federal Reserve on Tuesday.
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Money markets in the euro zone are pricing in a 0.13% chance that the ECB will cut its deposit rate, now minus 20.1%, by 21 basis points next week.
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Money markets attach a more than an 80% chance of a rate cut at the March meeting, which takes place next week, up from about 10% a week ago.
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Money markets attach a more than a 23.6% chance of a rate cut at the March meeting, which takes place next week, up from about 23.5% a week ago.
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Kenya's shilling will firm, helped by commercial banks selling off dollars, tight liquidity in money markets and political tensions easing after the opposition said it would challenge the Aug.
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Expectations for a European Central Bank rate cut have also risen; money markets now price a more than 80% chance of a 10 basis point rate cut in July.
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Expectations for a European Central Bank rate cut have also risen; money markets now price a more than 20.1% chance of a 0.53 basis point rate cut in July.
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The yield curve between three-month bills and 523-year notes remained inverted, with money markets pricing in roughly two U.S. rate cuts by the start of next year.
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Federal Reserve Chairman Jerome Powell said Wednesday that the Fed may have to resume the organic growth of its balance sheet sooner than expected to help ease money markets.
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Economists expect the People's Bank of China to step up its liquidity measures to ease funding conditions in Chinese money markets to combat downside risks posed by the infection.
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It is buying government debt again now, but only shorter-dated T-bills to replenish bank reserve levels that grew too low last year, causing problems in money markets.
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Money markets price in a 10-basis-point (bps) rise in the ECB's minus 0.40 percent deposit rate in October 2019, in what would be the first hike since 2011.
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The rise in borrowing costs and potential knock-on effects on the euro bloc saw money markets further trim bets that the ECB will raise interest rates in June 2019.
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Money markets are pricing in a 10 basis point increase in the ECB's minus 0.40 percent deposit rate in October 2019, in what would be the first hike since 2011.
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Chinese authorities have also pumped in billion of dollars into money markets this week in an effort to restore calm and have pledged to do more to support the economy.
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While money markets price practically no chance of a rate cut in December, Taylor said Rabobank analysts expect economic data to deteriorate enough to justify a rate cut in December.
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For the first time in a decade, the top-yielding online savings accounts and money markets are ahead of inflation – and this rate hike will help keep it that way.
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So on Wednesday, it injected cash into money markets through 14-day reverse repurchases agreements for the first time in six months to show its concern about the rising leverage.
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Currently, money markets expect only a quarter-point interest rate cut in Britain by March 2020, compared with more immediate easing priced in for the United States and euro zone.
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Chinese authorities have also pumped in billion of dollars into money markets this week in an effort to restore calm, and have pledged to do more to support the economy.
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Money markets are pricing in a good chance of a cut in one or more of the Bank of England's official interest rates to zero within the next three months.
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The darkening outlook for Britain's economy was also reflected in the money markets, where investors have all but priced out a rate hike by the Bank of England next year.
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Money markets have all but fully priced in a quarter point cut on Thursday in the BoE's main rates, held at a record low of 0.5 percent since March 2009.
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Money markets suggest some investors expect a move as early as next week, pricing almost a 60% chance of a 10 bps cut, up from around 40% earlier this week.
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Njoroge attributed the shilling's weakness this week to excess liquidity in the money markets, which makes it cheaper to fund dollar purchases, and increased hard currency demand from private companies.
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But Compound wants to create liquid money markets for cryptocurrency by algorithmically setting interest rates, and letting you gamble by borrowing and then short-selling coins you think will sink.
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The LIBOR case alone, in which banks are accused of manipulating the reported rate at which they borrow in money markets, has resulted in $22 billion in penalties so far.
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Money markets are assigning less than a 50 percent probability of an ECB rate hike this year and 80 percent likelihood of a rate hike from the Bank of England.
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While expectations of a U.S. rate pause have manifested in money markets, bets on policy tightening by other major central banks have also receded, giving a boost to the dollar.
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Like the Federal Funds rate here in the U.S., Libor is, and has been, quite sensitive to liquidity shortages and financial stresses in the world money markets over the years.
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The more dovish tone prompted money markets to price in the chance of a rate cut by year-end, with that probability hovering around 35 percent ahead of Wilkins speech.
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Forecasters are divided on whether the central bank will hike rates but data from the overnight index swaps market show that money markets are almost fully priced for an increase.
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Concerns are rising about financial risks, with corporate defaults on track for another record year and money markets jolted by the first state takeover of a bank in two decades.
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Expectations rose for a Fed rate cut, with money markets pricing in three rate cuts before the end of the year and as many as five cuts through mid-2020.
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Sterling gained on Thursday after the Bank of England held interest rates at 225%, defying money markets that had seen a 280% probability of a cut to help the economy.
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There is also the more immediate fear of global money markets seizing up again, 2008-style, with the recent repo rate surge in U.S. interbank markets a potential warning signal.
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Euro zone money markets imply a roughly 50% chance of a 10-basis-point rate cut by the end of the year, compared with around 30% earlier in the week.
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There is also the more immediate fear of global money markets seizing up again, 33-style, with the recent repo rate surge in U.S. interbank markets a potential warning signal.
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The MLF is a supplementary policy tool that the People's Bank of China uses to manage liquidity conditions and medium-term interest rates in the banking system and money markets.
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Money markets have moved to fully price in a BoE rate cut of 25 basis points at its next meeting, up from a chance of 80% before the Fed move.
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Money markets price in just over a 70 percent chance of a rate rise from the European Central Bank by the end of 2019, down from 100 percent earlier this month.
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Money markets show investors expect the ECB will raise its deposit rate, currently -22015 percent and below zero for four years, by only 22016 basis points over the next three years.
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Last year's freeze caused a funding squeeze in the money markets that sent the three-month interbank offered rate soaring to an eight-year high of 2.386 percent in late October.
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While money markets are pricing in practically no chance of a rate cut in December, Graham-Taylor said Rabobank analysts expect economic data to deteriorate enough to justify such a move.
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Money markets expect the Bank of Canada to leave its benchmark interest rate on hold at 1.75 percent throughout 2019, after the central bank hiked it five times since July 2017.
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In December, the shortage of excess reserves was so acute that it sent borrowing costs soaring in other parts of money markets that Wall Street relies on to fund its trades.
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Most economists expect another rate hike at the end of this year, although money markets have priced in just a 30 percent chance of that happening, according to CME's FedWatch tool.
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Traders said that a cash squeeze on the money markets on Thursday after lenders provided naira to participate in a central bank currency intervention had pushed the overnight rate sharply higher.
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Money markets are now pricing in nearly a 50% chance of an SNB rate cut in September and a two-thirds chance of one by December from the current minus 0.75%.
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The PBOC has conducted seven-day reverse repos in the past two weeks, injecting 230 billion yuan ($34.93 billion) on a net basis into the money markets so far in 2016.
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Forecasters are still divided on whether it will pull the trigger, but money markets seem convinced it will and are also 22 percent priced for a follow-up rise by December.
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His statement pushed up bond yields across the euro zone and led money markets to increase their bets that interest rates would rise a second time by the end of 210.
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The ECB is tipped to cut its deposit rate by 10 basis points to minus 0.40 percent at its March meeting and money markets price in a further cut by June.
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One is the historically high put-to-call ratio, a contrarian indicator; the spike in the volatility index, or VIX, and a big flow of investor assets into the money markets.
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On Thursday banks rallied after expectations increased that the ECB's next move could be a tightening in policy, with money markets now fully pricing in a rate hike by March 2018.
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The PBOC has injected a net 1,537.2 billion yuan ($221 billion) into money markets this year through open market operations, many multiples of its net 10 billion yuan injection in 2015.
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"Thus, the shift from LIBOR to SOFR will compound the increased volatility in the money markets already resulting from QT." Reporting by Jennifer Ablan in New York; Editing by Matthew Lewis
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The division's performance was esilient due to stable management fees, and despite CHF13 billion NNM outflows (excluding money markets) partly related to wealth management clients reallocating their portfolios towards passive solutions.
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Euro zone money markets price in roughly a 70 percent chance of a 10-basis-point hike in rates by next July, having fully priced in a move a week ago.
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" Muni analysts at Barclays noted in a report on Monday: "This is likely to help to start unfreezing tax-exempt money markets; however, outright purchases of munis might still be needed.
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While programs including the Term Asset-Backed Loan Facility and help for the commercial paper and money markets are familiar to financial crisis historians, the Fed has added to its outreach.
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LONDON, March 4 (Reuters) - Trading volumes across bond, credit, equity and money markets on the Tradeweb platform jumped 47% last month, reflecting increased volatility across world markets, Tradeweb said on Wednesday.
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Money markets are now pricing in roughly two 20193-basis-point rate cuts by the U.S. Federal Reserve and expect a 10 bps cut by the European Central Bank by December.
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Expectations for a European Central Bank rate cut have also risen: money markets are now pricing in a more than 23% chance of a 211 basis point rate cut in July.
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Money markets have swung dramatically in recent months and are now only fully pricing one more hike in 83003 having expected another two or three at least earlier in the year.
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The repurchase market is just one of the short-term money markets where short-term cash and bank reserves are channeled to borrowers, and rate increases in one can influence others.
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The consensus is it stays on hold all year, and if there is going to be a move, money markets reckon there is more chance of a cut than a hike.
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China's central bank meanwhile has also contributed to dollar strength via liquidity injections into money markets and by cutting reserve requirement ratios for banks by 100 basis points in mid-April.
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Despite strains in money markets that have forced Fed intervention this week, there is no indication of any imminent return to quantitative easing and balance sheet expansion, said Greg McBride, Bankrate.
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Money markets currently price in a 10 basis points increase in the ECB's deposit rate in October 2019, in what would be the first hike since 2011 after years of monetary largesse.
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But money markets are pricing in around a 70 percent chance of the Fed raising rates in December for just the second time this decade, according to the CME Group's FedWatch Tool.
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Investors have ramped up bets of more policy easing from the European Central Bank with money markets expecting about 13 bps in interest rate cuts at its next policy meeting in September.
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Money markets are now pricing a roughly 50% chance of a BoE rate cut by end-year, having increased their bets after recent comments by governor Mark Carney were viewed as dovish .
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Money markets are also now pricing in a good chance of a cut in one or more of the Bank of England's official interest rates to zero within the next three months.
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On Wednesday, money markets were pricing in 54% chance the SNB will cut its benchmark rate of -1.10% -- already one of the lowest in the world -- by 25 basis points by September.
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On Tuesday, state-controlled funds, known as China's National Team, were reportedly buying equities while the People's Bank of China (PBOC) injected $20 billion into money markets—the largest operation since September.
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Commercial banks would be able to make loans using only funds they hold in long-term savings accounts, obtain from the money markets, or get from the Swiss National Bank in advance.
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On Wednesday, money markets were pricing in 54% chance the SNB will cut its benchmark rate of -1.10% — already one of the lowest in the world — by 25 basis points by September.
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Or to express the problem in a different way, the forward currency rate gets out of line with the interest-rate differential between the two currencies (as conventionally measured in money markets).
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The Kenyan shilling is expected to remain stable in the coming week with money markets closed for two sessions on Monday and Tuesday due to Christmas and Boxing Day holidays, traders said.
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Bittar, a Singapore-based star trader who was once one of Deutsche Bank's most profitable money markets managers, is being represented by Alexander Cameron, brother of the British Prime Minister, David Cameron.
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However, Yellen added that the Fed concluded negative rates was not a preferred tool when it last looked at the option in 2010, in part due to its impact on money markets.
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LONDON, Feb 6 (Reuters) - Average daily trading volumes across rates, credit, money markets and equities surged by over a fifth to a new record in January, trading platform Tradeweb said on Wednesday.
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Goldman Sachs analysts wrote that while there were no signs of any strain in terms of euro or U.S. dollar funding in money markets for European banks, market liquidity had nevertheless reduced.
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Money markets are pricing in a roughly 55% chance of a 10-basis point rate cut next week, versus a 40% chance earlier in the week, according to data from Refinitiv's Eikon.
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Money markets are now pricing a roughly 50% chance of a BOE rate cut by end-year, having increased their bets after recent comments by governor Mark Carney were viewed as dovish .
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UK money markets now show that a quarter-percentage-point increase by the end of this year is seen as certain, with another, similar increase expected by the end of next year.
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Goldman Sachs analysts wrote that while there were no signs of any strain in terms of euro or U.S. dollar funding in money markets for European banks, market liquidity had nevertheless fallen.
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As the Fed pares its balance sheet, it will to reduce the amount of excess reserves in the banking system, which would likely put upward pressure on borrowing costs in money markets.
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The yield curve between three-month bills and 10-year notes also remained inverted and money markets were now pricing in roughly two U.S. rate cuts by the start of next year.
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Over the past few years, in a global environment of very easy money, markets chose to turn a blind eye to Brazil's shaky public finances and to its poor economic growth record.
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That is the time corporates have to make their quarterly tax payments and market participants fear the central bank may no longer find it necessary to contain volatility in the money markets.
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Euro zone money markets no longer fully price in a 10-basis- point rate rise by the European Central Bank in 2019, indicating growing concern about the economic outlook in the region.
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Liquidity in the country's money markets is typically tight at end of a quarter as banks and other financial institutions need more cash to burnish their balance sheets and meet regulatory requirements.
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During past episodes of weakness, the HKMA has tended to issue additional exchange fund bills to soak up excess cash in money markets, putting a floor under interbank rates and the currency.
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Euro zone money markets are now pricing in a 50% chance of a 10 basis point rate cut by the ECB in July, up from the 40% chance priced in last week.
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Money markets are fully pricing in the probability that the ECB will cut interest rates by 10 bps at its meeting on Thursday, but the focus is on whether this will suffice.
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But speculation has risen it could be shaken off autopilot by the virus, with money markets predicting one 25 basis-point rate cut this year and a small chance of a second.
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The British pound, down almost 2% this month, slipped further as below-forecast inflation data prompted money markets to ramp up expectations of an interest rate cut as soon as this month.
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But undermining the dollar, U.S. money markets are pricing out any chance of the Federal Reserve raising interest rates in the coming 12 months, suggesting a tempering of the currency's yield allure.
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Money markets are now all but certain the U.S. Federal Reserve will lower its benchmark lending rate next month and the yen - heavily sold a week ago - has roared back to life.
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Against this backdrop, money markets do not price aggressive easing from the ECB — Eonia futures price in roughly a 70% chance of a 10-bps cut by the end of the year.
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A key gauge of long-term euro zone inflation expectations hit a record low and euro zone money markets indicated investors were now positioning for a rate cut as early as June.
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Against this backdrop, money markets do not price aggressive easing from the ECB -- Eonia futures price in roughly a 70% chance of a 10-bps cut by the end of the year.
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Money markets have priced out the probability of a full 25 basis point rate cut from the Bank of England this year , betting an expansion in spending will boost growth and inflation.
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The Fed official also addressed the unusual bout of volatility seen in money markets roughly two weeks ago, when a borrowing rate charged in overnight lending markets for cash spiked to 10%.
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The Fed official also addressed the unusual bout of volatility seen in money markets roughly two weeks ago, when a borrowing rate charged in overnight lending markets for cash spiked to 10%.
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Goldman Sachs analysts said that while there were no signs of any strain in terms of euro or U.S. dollar funding in money markets for European banks, market liquidity had nevertheless reduced.
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After a four-year stint running the New York Fed, thereby acquiring respect in money markets, Volcker was appointed Fed chairman in August 1979 by the beleaguered administration of President Jimmy Carter.
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The yield curve between three-month bills and 3.13-year notes also remained inverted and money markets were now pricing in roughly two U.S. rate cuts by the start of next year.
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On Tuesday, there was limited market action in the yuan and Asian foreign exchange in the wake of a temporary cash crunch in U.S. money markets, which sent dollar borrowing costs rocketing.
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LONDON, July 2 (Reuters) - Money markets now price in roughly a 50% chance of a 10 basis point cut in euro zone interest rates this month, according to futures trading on Tuesday.
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It may also be why money markets still only attach a 50-50 probability to a fourth hike this year, even though the Fed said on Thursday that is what it will deliver.
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Money markets see about a 50% chance of a Bank of Canada interest rate cut by December, while they are pricing in at least two cuts over the same period from the Fed.
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In an effort to assuage markets, China's central bank unexpectedly lowered the interest rates on reverse repurchase agreements and injected a total of 1.2 trillion yuan ($173.81 billion) into money markets on Monday.
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The dismal indicators, alongside a surprisingly dovish speech by Bank of England governor Mark Carney, have led money markets to fully price in a 25 basis points cut in the next 12 months.
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Money markets see about a 70% chance of a Bank of Canada rate cut by December, while they are pricing in at least two cuts over the same period At 2:50 p.m.
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Euro zone money markets fully price in a 10 basis point hike in the ECB's minus 0.40 percent deposit rate in October 2019, showing little change in pricing following the ECB news conference.
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The idea is to stimulate the online economy in a way that doesn't rely on foreign money markets or third party transaction brokers, and allows the government to closely regulate and track it.
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With the next six months set to be dominated by efforts to agree a Britain-EU trade deal, money markets do not expect the BoE to hike rates again until late next year.
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Repo transactions are important to the functioning of financial markets by helping to broaden, stabilise and provide an efficient source of lending to money markets, according to the International Capital Markets Association (ICMA).
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Money markets' gauge of long-term inflation expectations ticked higher, however, with five-year/five-year forward inflation swaps — watched closely by the ECB —trading as high as 1.3582, the highest since May.
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Money markets are now pricing a roughly 50% chance of a BoE rate cut by end-year, having increased their bets after recent comments by governor Mark Carney were viewed as dovish BOEWATCH=.
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On Thursday the central bank removed an undisclosed amount of shillings from the money markets via a one-week repurchase agreement (repo) and two deposit auctions of 29-day and 56-day tenors.
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As the Brexit headwinds have grown, money markets have pared back expectations for rate rises, with a 25 basis point BoE hike now no longer fully priced in until at least August 2020.
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UAE banks were absent from Qatar's foreign exchange and money markets on Sunday, causing both those markets to slow down, because they feared any deals could expose them to legal risk, bankers said.
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Yoo said South Korea's economy has strong fundamentals compared with other emerging economies, but added Seoul continues to monitor money markets and foreign exchange liquidity conditions in particular given the uncertain global backdrop.
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Euro zone money markets fully price in a 10 bps cut in the deposit rate at the ECB's March meeting to boost inflation, with a further 10 bps cut priced in by June.
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The reading pushed U.S. Treasury yields higher, but money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019.
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While a 0.423 bps cut had already been expected, money markets are ramping up bets on a larger cut, moving to price a more than 60% chance of a 20-basis-point cut.
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Sterling GBP= fell 0.25% against the dollar after the inflation data and money markets now see around a 57% chance of a rate cut this month compared to 49% before the inflation reading.
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NEW YORK (Reuters) - Federal Reserve officials should focus on scaling back interventions in money markets now that short-term rates are stable, Dallas Fed Bank President Robert Kaplan said Wednesday in New York.
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The Friday repo operation, the fourth one this week as the U.S. central bank aims to inject temporary cash to avert turbulence in U.S. money markets, will be conducted at 8:15 a.m.
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The worsening outbreak now has money markets all but certain the Federal Reserve will lower its benchmark lending rate next month, which was priced as just a 9% chance only a week ago.
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Money markets are now pricing in a close to 50% chance for a 25 basis point cut to rates from the current level of 0.75%, up from around a 20% chance on Friday.
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After a weak service-sector business sentiment report on Wednesday and dovish comments from New York Federal Reserve chief William Dudley, U.S money markets predicted no rise in official interest rates this year.
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It doesn't sound like much, but it is fairly easy to find money markets that pay 1 percent plus interest, which is a whole heck of a lot more than 18 months ago.
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With the next six months set to be dominated by efforts to agree a Britain-EU trade deal, money markets do not expect the BOE to hike rates again until late next year.
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Back home, on the stock specific front, NBFCs remained in focus, with the recent IL&FS default and outflows from debt mutual funds triggering fears of a potential liquidity crisis in money markets.
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The PBOC usually pumps more funds into money markets to ensure markets have ample liquidity at such times, but some traders say its injections have barely been keeping up with heavier demand this year.
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LONDON, Jan 7 (Reuters) - Euro zone money markets priced in on Thursday around a 50 percent chance that the European Central Bank lowers its deposit rate deeper into negative territory at its March meeting.
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" U.S.-based money markets took in more than $2 billion in the week ended Wednesday - a much lower level than the previous week of $33 billion, "suggesting that investors were putting money to work.
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This reflects both tighter American money markets and a breakdown of "covered interest parity", the principle that the difference between spot and forward exchange rates should mirror the interest-rate differential between the currencies.
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Tradeweb, which was founded in 1996 and trades interest rate swaps, credit, money markets and equities, has clients including banks, asset managers, retail brokers, insurance companies and central banks in more than 60 countries.
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Money markets see about a 50-percent chance of a Bank of Canada interest rate cut by December, while they are pricing in at least two cuts over the same period by the Fed.
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In the weekend meeting with Japanese Prime Minister Shinzo Abe, Trump held off from repeating harsh rhetoric that accused Japan of taking advantage of U.S. security aid, stealing American jobs and "playing money markets".
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Money markets now think another 237 percentage points will be lopped off by the end of the year and even that would still leave them above where they were just over a year ago.
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Ahead of the ECB meeting, money markets continued to price in a 10 basis point rate rise in early 2019, although expectations for a hike as early as this December have been scaled back.
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Money markets now price in a good chance of a cut in one or more of the BoE's official interest rates to zero within the next three months, possibly as early as next week.
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Euro zone money markets no longer fully price in a 10 basis point rate rise from the European Central Bank in 2019, indicating growing investor concern about the economic outlook in the currency bloc.
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In the euro zone, money markets fully price in a 10 bps cut in the ECB's -0.40% deposit rate in September, followed by another by year-end and a further one by late 2020.
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Money markets are are 4033% priced for three interest rate cuts of 25 basis points each by next March, while some banks such as Barclays predict three cuts by the end of the year.
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The militant group that calls itself Islamic State (ISIS) is exploiting national banking operations in Iraq and could be making up to $25 million a month in Middle Eastern money markets, according to experts.
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Euro zone money markets now price in a 70 percent chance of a 10-basis-point rate increase by the ECB by the end of the year, up from 50 percent a week before.
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"Ultimately, increased federal deficits and expanded Treasury issuance to fund those deficits, combined with a reversal in investor appetite for that growing supply of Treasuries, will bring pressures back into money markets," Campbell said.
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As the currency approaches the lower end of a trading band, expectations are growing the central bank will announce a hefty issuance of bills to drain the excess liquidity out of its money markets.
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But, with worsening economic headlines, falling corporate investment and a looming Fed rate cut, the People's Bank of China cannot merely be operating behind the scenes through local government spending and liquid money markets.
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Despite the robust core U.S. consumer price index data, money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 13.
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Separate data showed that Canadian labor productivity grew Meanwhile, money markets expect the Bank of Canada to leave its benchmark interest rate on hold at 1.75%, when it announces its decision at 10 a.m.
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The New York Federal Reserve announced on Wednesday it would substantially increase the liquidity it provides to overnight lending market - a signal it would do what it could to keep money markets running smoothly.
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Money markets are now pricing in a full probability of 20 basis points worth of rate cuts - or two full rate cuts of 10 bps each - by the bank's June meeting, Eonia futures showed .
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Mirroring the emptying of supermarket shelves around the world, indebted corporates have rushed into money markets to hoard dollars, with a global shortage of greenback funding threatening to cripple firms from airlines to retailers.
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On Monday, the PBOC injected 50 billion yuan ($7 billion) into money markets through seven-day reverse repos, breaking a hiatus of 29 trading days with no fresh fund injections via the liquidity tool.
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The virus outbreak and measures to fight it have had a drastic impact on market values and volatility globally, with equity, debt and money markets registering declines not seen since the global financial crisis.
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Money markets were pricing in another 25 basis point cut from the current 1% to 1.25% range at the next Fed meeting on March 18-19 and a 50 basis points cut by April.
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Money markets were pricing in another 25 basis-point-cut from the current 1% to 1.25% range at the next Fed meeting on March 3-19 and a 50-basis-point cut by April.
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Money markets are pricing in another 21 basis point cut from the current 2662.55% to 1.25% range at the next Fed meeting on March 18-19 and a 50 basis point cut by April.
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Money markets have started to price in higher ECB interest rates for next year and expectations are growing other central banks might try to emulate Sweden in raising rates out of sub-zero territory.
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Expectations the Fed will cut interest rates to cushion the blow are rising in money markets, with Fed funds futures now pricing in a good chance of a move as early as next month.
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Money markets on balance expect a 25 basis point rate cut to the current Fed rate of 2% in October, but that would still leave rates far above the -0.6% of the euro zone.
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Analysts said traders were taking profits on recent gains in the currency, and because money markets still priced in a 50% chance of a rate cut when the Bank of England meets next Thursday.
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Dimon's comments echoed arguments made by Washington lobby group the Bank Policy Institute, which earlier this month warned money markets would suffer a spike in volatility exacerbated by the Fed's liquidity coverage ratio rule.
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LONDON (Reuters) - Euro zone money markets on Monday showed investors have brought forward expectations for a rate cut from the European Central Bank after poor manufacturing and services data elevated concerns about a recession.
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Money markets were pricing in another 0.873 basis-point-cut from the current 1% to 1.25% range at the next Fed meeting on March 18-19 and a 50-basis-point cut by April.
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Money markets were pricing in another 25 basis-point-cut from the current 1% to 0.323% range at the next Fed meeting on March 18-19 and a 50-basis-point cut by April.
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The New York Federal Reserve announced on Wednesday it would substantially increase the liquidity it provides to overnight lending market - a signal it would do what it could to keep money markets running smoothly.
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The virus spread and measures to fight it have had a drastic impact on market values and volatility globally, with equity, debt and money markets registering declines not seen since the global financial crisis.
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LONDON (Reuters) - Money markets no longer expect the Bank of England to hike interest rates in 2019, as investors slashed their bets on monetary tightening after Dominic Raab resigned on Thursday as Britain's Brexit minister.
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Euro zone money markets almost fully price in a 10-basis-point rate cut at the ECB's September meeting, and even a stabilisation in Friday's PMI numbers is unlikely to change that view, analysts said.
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Money markets in China were rattled after regulators took control of Inner Mongolia-based Baoshang Bank on May 24 due to "serious" credit risks, and some smaller non-banks have suffered liquidity crunches since then.
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That pushed German 10-year bond yields to four-month highs above 0.5 percent, while yields also rose across the euro bloc with money markets now pricing a rate rise by the ECB next September.
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In central Europe, the Hungarian forint trod water with its central bank expected to keep interest rates at record lows later and pump more liquidity into money markets despite rising wage growth in the country.
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Most analysts have interpreted Draghi's speech as hawkish - euro zone money markets brought forward their expectations for a 10 basis point ECB rate hike to September from October 2019 - helping to underpin the single currency.
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Money markets see a greater than 80% chance that the Fed will cut interest rates as soon as next month and are also expecting at least one further cut before the end of the year.
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LONDON (Reuters) - Euro zone money markets on Friday showed around an 80 percent chance that the European Central Bank could lift its deposit rate at its December meeting, up from 60 percent a week ago.
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Money markets see a less-than 50 percent chance of a Bank of Canada interest rate cut by December, while they are pricing in at least two cuts over the same period by the Fed.
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Money markets are now pricing in around a 210% chance of a 24.5-basis-point rate cut by the ECB at that meeting, while a 20.347 bps cut is fully priced in for September's meeting.
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The premium of three-month LIBOR over three-month OIS, which is seen as a gauge of stress in the money markets, grew to 48.45 basis points earlier Tuesday, the widest gap since January 2012.
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The Fed rarely delivers interest rate moves that are not largely priced in by money markets and Fed funds futures show the chances of a rise next month are still only around 20-25 percent.
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However, it debited customers' naira accounts on the day of the auction but will deliver the dollars in two months' time, traders said, adding that the move had soaked up liquidity from the money markets.
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Money markets are now pricing in around a 50% chance of a 10-basis-point rate cut by the ECB at that meeting, while a 10 bps cut is fully priced in for September's meeting.
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The People's Bank of China poured nearly $20 billion into money markets, while the China Securities Regulatory Commission announced it was planning new rules to further restrict share sales by major stakeholders in listed companies.
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Money markets are now pricing in around a 231% chance of a 10-basis-point rate cut by the ECB at that meeting, while a 10 bps cut is fully priced in for September's meeting.
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Euro zone money markets continue to price in a roughly 70 percent chance of 10 basis point rate rise from the ECB by year-end, having ratcheted up rate-hike bets in the past week.
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Other polls have been tighter, but money markets have now abandoned expectations, high just weeks ago, that the U.S. Federal Reserve could raise official borrowing costs on Wednesday, just 8 days before the UK vote.
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Money markets are now pricing in around a 233% chance of a 0.77-basis-point rate cut by the ECB at that meeting, while a 20.728 bps cut is fully priced in for September's meeting.
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He called the situation a "'fiscal dominance' of money markets" and warned of the consequences of an inverted yield curve, where the fed funds rate sits well above the benchmark 10-year Treasury note yield.
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After a weak U.S. service-sector business sentiment report on Wednesday and dovish comments from New York Federal Reserve chief William Dudley, U.S. money markets shifted to forecast no move in official rates this year.
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LAGOS, March 10 (Reuters) - Nigeria's overnight lending rate dropped to around 12 percent on Friday from 16 percent a week earlier as maturing bills and government budget disbursements pumped more cash into the money markets.
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The Moscow Exchange told Reuters the bank will retain access to its markets, which span equities, bonds, derivatives, money markets and precious metals as well as foreign exchange, but with "limits on foreign currency operations".
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Such a standing fixed-rate repurchase agreement, or repo, facility would serve as a backstop against sharp spikes in interest rates in money markets, which are occurring with growing frequency at month- and quarter-end.
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The plumbing of the financial system - short-term interbank and money markets - clogged up only a little as the premium for risk-free lending relative to unsecured lending rose to its highest in four years.
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Worries about tighter lending regulations have pushed the yield on 10-year treasuries up by nearly 40 basis points since the end of September, despite frequent and hefty central bank cash injections into money markets.
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Money markets are now pricing in one full rate cut of 10 basis points by the end of the year with core bond yields across the eurozone falling 5-10 basis points across the board.
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"The announcement by the BoC today adds to measures released over the last few days in order to increase liquidity in money markets," said Simon Harvey, FX market analyst for Monex Europe and Monex Canada.
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Prime Shipping Foundation, which struck the first freight deal settled in Bitcoin, plans an initial coin offering And retail investors would suffer most if the digital money markets collapsed, according to S. & P. Global Ratings.
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However, with the Fed on a more dovish path and bond yields holding near lows, Stone sees the potential for funds to shift out of money markets such as mutual funds and into equities again.
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Focus is on the U.S. central bank's next policy decision as Chairman Jerome Powell flagged openness to further rate cuts and said the Fed would expand its balance sheet to ensure money markets functioned smoothly.
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Focus is on the U.S. central bank's next policy decision as Chair Jerome Powell flagged openness to further rate cuts and said the Fed would expand its balance sheet to ensure money markets functioned smoothly.
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Uncertainty and unease surrounding U.S. president-elect Donald Trump's inauguration, volatile trading in Chinese currency and money markets and a potential U.S. interest rate rise could all tempt investors to play safe in the coming weeks.
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Money markets now price in a good chance of a cut in one or more of the BoE's official interest rates to zero within the next three months, possibly as early as next week GBPOIS=ICAP.
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After remarks from ECB chief Mario Draghi in Sintra, Portugal, in late June were seen as signaling a policy change, money markets quickly shifted to reflect expectations for a rate rise as early as mid-2018.
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Money markets had shown a 20 percent chance of a rise in U.S. rates next month but that slipped to as little as 15 percent despite the Fed sending a broadly upbeat message on the economy.
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The PBOC on Wednesday injected 90 billion yuan ($13.55 billion) into money markets through seven-day reverse bond repurchase agreements (repos) and an additional 50 billion yuan through 14-day reverse repos on Wednesday, traders said.
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Total mutual fund assets excluding money markets stood at $13.6 trillion by the end of 2016, while exchange-traded funds, most of which are passive in nature, held $2.5 trillion, according to the Investment Company Institute.
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Money markets are pricing in two further rate cuts of 10 basis points (bps) this year, with the first expected at the ECB's meeting next month at which Draghi said he stands ready to review policy.
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LONDON, April 26 (Reuters) - The Bank of England set out new guidelines on Wednesday aimed at improving standards in British government bond and money markets, including a crack down on dealers profiting from clients' confidential information.
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The People's Bank of China (PBOC) poured nearly $20 billion into money markets, its largest cash injection since September, and traders suspected it was using state banks to prop up the yuan at the same time.
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That has fuelled a perception that any tightening in U.S. rates will be slow, with money markets pricing in a roughly 60 percent chance of a rate hike in December, according to CME Group's FedWatch tool.
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The debt relief deal that Athens agreed with its international lenders in June was a decisive step, Tsipras said, adding that Greece had secured stable access to money markets after its bailout expires on Aug. 20.
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LONDON, Jan 26 (Reuters) - Investors in money markets see around a 50 percent chance of the European Central Bank raising interest rates by January 2018, shortly after the end date of its current bond-buying scheme.
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The last time investors pulled that much cash off the sidelines in the first two months of the year was in 2010, when money markets saw outflows of more than $4503 billion in January and February.
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Asian stocks closed sharply lower overnight, with the Nikkei 225 off more than 2 percent and the Shanghai composite down more than 3 percent despite news China's central bank will inject more funds into money markets.
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Money markets had shown a 43 percent chance of a rise in U.S. rates next month but that slipped to as little as 15 percent despite the Fed sending a broadly upbeat message on the economy.
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The banks said the agreements will pave the way for wider usage of local currencies in the ASEAN Economic Community and spur development of regional foreign exchange and money markets, supporting wider economic and financial integration.
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Money markets were pricing in about a 75 percent chance of a 10 bps cut in the ECB's deposit rate to minus 0.40 percent in March, compared with a 210 percent probability before Draghi's news conference.
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The central bank has also increased its purchases of Treasury securities to ensure rates in short-term money markets remain low, a development that injects fresh money into financial markets and that can also help stocks.
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NEW YORK, Oct 403 (IFR) - Enhanced cash funds are rolling out again in new forms, as investors looking for extra yield amid the money markets overhaul start to embrace an asset class with a checkered past.
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Traders said liquidity conditions improved as the central bank continued to provide funds via open market operations, after injecting a net 410 billion yuan into money markets last week, the biggest weekly injection since mid-January.
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Forward contracts of overnight EONIA interest rates dated for the March meeting are 13 basis points lower than the spot rate, meaning money markets see a one-in-three chance of a 20 basis point cut.
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Money markets expect the Bank of Canada to leave its benchmark interest rate unchanged at 25 percent at next week's interest rate decision, after 23 basis points of tightening by the central bank since July 22.
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The central bank also told banks that it would consider using reverse repos longer than 14 days to help adjust the structure of lending in the money markets, the sources said, declining to give further details.
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Interbank money markets, however, have yet to price in a cut in official rates into negative territory, conscious of past warnings from the bank that such rates might be counterproductive given the structure of UK banking.
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The Federal Reserve and Bank of Canada have cut interest rates by 2766 basis points, and euro zone money markets price in a 20.4% chance of the European Central Bank will cut by 10 basis points.
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The shortage had put pressure on U.S. repo rates in September when interest rates in U.S. money markets shot up to as high as 22.3% for some overnight loans, more than four times the Fed's rate.
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The chaotic moves in money markets and late-day swings in U.S. federal funds futures mean the CME's tool shows about a 51% chance that the Fed will cut rates by 25 basis points on Wednesday.
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NEW YORK (Reuters) - New York Federal Reserve President John Williams on Monday defended the bank's handling of volatility in money markets last week, saying officials anticipated the liquidity crunch and were successful in easing the markets.
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NEW YORK (Reuters) - New York Federal Reserve President John Williams on Monday defended the bank's handling of volatility in money markets last week, saying officials anticipated the liquidity crunch and were successful in easing the markets.
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A long-term measure of the market's euro zone inflation expectations meanwhile fell to 1.21% - its lowest since early-September, while money markets brought forward bets on an ECB rate cut to March 2020 from April.
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LONDON, April 24 (Reuters) - Euro zone money markets on Monday priced in a higher chance of a rise in European Central Bank interest rates after Emmanual Macron won the first round of the French presidential election.
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After ECB easing measures failed to meet the market's high expectations in December, money markets price in a roughly 10 percent chance that rates will be cut by a further 10 basis points at Thursday's meeting.
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But money markets have shifted rapidly since Thursday, when the sell-off on Wall Street accelerated, from seeing little chance of a rate cut this week to pricing one in and expecting further easing in April.
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Money markets are assigning a 41% probability of a quarter point UK rate cut by the end of the year The British currency has lost 0.7% of its value against the dollar over the past week.
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In 2013, the central bank abruptly curtailed its lending in money markets to force rates higher and slap some banks on the wrists for relying too heavily on short-term borrowing to fund risky longer-term investments.
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The ECB meets on Thursday, with money markets pricing in a more than 50% chance of a 10 basis point cut in interest rates and bond investors expecting at least a clear promise of action in September.
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LONDON (Reuters) - Investors in money markets expect the European Central Bank to cut interest rates by September in efforts to safeguard the bloc from any economic shock resulting from Britain's vote to leave the EU on Friday.
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China central bank in August injected cash into money markets through 14-day reverse repo agreements for the first time since February in a sign policymakers were worried rising leverage could stoke bubbles in the bond market.
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In money markets, the difference between forward overnight rates dated for the March ECB meeting and the average spot Eonia rate in the past month suggested expectations of a 10 basis point cut in the deposit rate.
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The PBOC injected a net 95 billion yuan into money markets through open market operations on Friday, bringing total net injections this week to 1.13 trillion yuan, the biggest weekly injection on record, according to Reuters calculations.
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LONDON, Oct 19 (Reuters) - Euro zone money markets are not fully pricing in an interest rate rise from the European Central Bank until October 2019, having earlier this week priced in a hike for September next year.
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SHANGHAI, Sept 27 (Reuters) - Chinese money markets are approaching a quarterly health check of the country's banks and a week-long holiday with more placidity than usual, helped in part by increased cash supplies from government spending.
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His comments affirmed market expectations - money markets expect one rate cut later this month and a cumulative 68 basis points of cuts until the end of 2019 - but market watchers said Powell's views will drive the dollar.
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He said excess bank reserves remain "abundant" in money markets, but warned that the central bank's portfolio of bonds will not shrink from about $4.2 trillion currently to its pre-crisis size of less than $1 trillion.
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Hawkish comments last week by Bank of Canada Governor Stephen Poloz have left money markets largely expecting the central bank to lift its benchmark interest rate, which sits at 1.25 percent, by 25 basis points next week.
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HONG KONG/LONDON/NEW YORK (Reuters) - Central banks worldwide acted to shore up money markets after cratering share prices drove a rush for cash, hitting many regional currencies and threatening a surge in short-term borrowing costs.
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HONG KONG/LONDON/NEW YORK (Reuters) - Central banks worldwide acted to shore up money markets after cratering share prices drove a rush for cash, hitting many regional currencies and threatening a surge in short-term borrowing costs.
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The radical steps came after U.S. money markets seized up as a broad set of market participants, from big multinational carmakers to small shop owners, hoarded dollars fearing a slump in cashflow during lockdowns in their countries.
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Officials are trying to make clear that the change is purely technical — meant to keep money markets functioning smoothly and the Fed's policy interest rate at the right level — and not an attempt to stoke the economy.
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"Money markets have become a battleground for the PBOC to try to keep the yuan stable partly by keeping interest rates within its intended ranges," said a senior trader at a Chinese state-owned bank in Shanghai.
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Money markets scaled back expectations of a rate cut, to as low as a 10% chance of a 10 bps rate cut from the European Central Bank in December, down from a 20 bps probability on Friday.
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While interest rate expectations from the U.S. Federal Reserve haven't changed dramatically this week, with money markets expecting policymakers to cut interest rates by 32 bps by the end of the year, traders are buying other currencies.
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Since the Fed started buying $21.7 billion of Treasury bills a month last fall to counter ructions on short-term money markets, credit spreads are tighter and the bank funding markets targeted by the purchases are calmer.
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NEW YORK (Reuters) - A measure on what banks charge each other for three-month dollars fell to its lowest in about 1-1/2 years on Wednesday, suggesting some stabilization in money markets after last week's turmoil.
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Money markets in the past two weeks have moved to price in a greater chance of a further cut to the ECB's deposit rate, with a 10 bps cut fully priced in by the end of the year.
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Money markets have gone from giving that a less than 20 percent probability two weeks ago to around 20173 percent on Friday - yet the dollar is still short of even last month's highs against the euro and yen.
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"If the supply is truly fixed then the price of these securities are determined purely by demand which, in turn, is determined largely by sentiment," said Ken Dickson, investment director, money markets and FX at Aberdeen Standard Investments.
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HONG KONG (Reuters) - Asia's relatively stable bonds and money markets seem immune to the inflation fears that convulsed global equities recently, as investors bet the continent's major economies will keep interest rates low as price pressures remain benign.
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"Ultimately, increased federal deficits and expanded Treasury issuance to fund those deficits, combined with a reversal in investor appetite for that growing supply of Treasuries, will bring pressures back into money markets," Campbell said in a research report.
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Money markets are convinced the Fed will cut the key benchmark rate by 258.4 basis points, but it remains to be seen whether this is going to be a one-off cut or whether more cuts will follow.
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Money markets are convinced the Fed will cut the key benchmark rate by 257.6 basis points, but it remains to be seen whether this is going to be a one-off cut or whether more cuts will follow.
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Still, anemic wage gain could make the U.S. central bank cautious about raising interest rates again this year, with money markets pricing in less tightening from the Fed over the coming months than from the Bank of Canada.
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Money markets are pricing in a 54% chance of a matching SNB interest rate cut by September and a near 80% probability by December; interest rates are already at minus 0.75% - the lowest in the developed market world.
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Money markets are pricing in a 22% chance of a matching SNB interest rate cut by September and a near 29% probability by December; interest rates are already at minus 0.75% - the lowest in the developed market world.
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China's central bank will inject 290 billion yuan ($44.09 billion) into the money markets through 28-day reverse bond repurchase agreements, and will inject 110 billion yuan through seven-day reverse bond repurchase agreements on Thursday, traders said.
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Money markets have gone from giving that a less than 20 percent probability two weeks ago to around 503 percent on Friday - yet the dollar is still short of even last month's highs against the euro and yen.
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That's part of a larger story of trillions in money lying fallow around the country — zero-yielding money markets are holding $2.66 trillion in investor cash, and banks are storing $2.15 trillion in excess reserves at the Fed.
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JAKARTA, May 7 (Reuters) - Indonesia will limit foreign ownership of providers of electronic trading platforms for foreign exchange and money markets, a central bank official said on Tuesday, as part of its broader plans to improve market management.
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Money markets are pricing in around a one in four chance that rates will be hiked later this month, according to CME FedWatch, and around a 60 percent chance of a hike by the end of the year.
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China took aggressive steps on Wednesday to head off signs of growing risks in its financial and banking system, unveiling detailed rules to curb an unruly peer-to-peer (P2P) lending sector and intervening in its money markets.
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U.S. Treasury yields have risen to three-week highs and the dollar is up more than 1% this month after jobs data led money markets to pare back expectations for rate cuts at the Federal Reserve's July meeting.
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The People's Bank of China (PBOC) met with major banks on Wednesday to discuss management of liquidity in Chinese money markets amid rising speculation over whether Beijing would continue its monetary policy easing or not, the sources said.
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"The risk of funds imposing liquidity fees or gates has risen over the last week and will remain elevated based on our expectation that stress in money markets is likely to persist," Moody's said in a research report.
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"The risk of funds imposing liquidity fees or gates has risen over the last week and will remain elevated based on our expectation that stress in money markets is likely to persist," Moody's said in a research report.
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Analysts said money markets were almost fully priced for a rate cut by the Bank of England by the end of the year and around a 50 percent chance of one by August, which should keep sterling weak.
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Repo rates, the cost for banks and Wall Street dealers to borrow dollars, were elevated, exposing cracks in U.S. money markets in advance of a Federal Reserve monetary policy meeting where traders widely expect an interest rate cut.
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LONDON, Oct 15 (Reuters) - Money markets scaled back expectations for interest rate cuts from the European Central Bank and the Bank of England on Tuesday, after news that UK and EU negotiators are nearing a draft Brexit deal.
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Euro zone money markets now price a roughly 10% chance of a 10 basis-point rate cut from the ECB at its December policy meeting, compared to a 20% probability on Friday, according to EONIA money market futures.
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Euro zone money markets started to fully price in the probability of a 10 bps rate cut from the European Central Bank at its July meeting, and were close to pricing in a cut as early as June.
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LONDON, Feb 27 (Reuters) - Euro zone money markets now fully price in the probability of a rate cut from the European Central Bank at its July meeting, as fears of the economic impact of coronavirus continue to grow.
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Money markets currently price a roughly 60% chance of a 25 basis point interest rate cut by December, versus just over 50% at the end of 2019 BOEWATCH Reporting by the London Markets Team, writing by Yoruk Bahceli
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LONDON, Jan 9 (Reuters) - Money markets are starting to price higher interest rates for the euro zone next year, reflecting belief the economy is past its worst and the European Central Bank is wary of further monetary easing.
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Cross-currency swaps were in the spotlight during the 2008 global financial crisis and the eurozone crisis when banks used derivatives markets to secure overnight funding if they had been locked-out of the traditional wholesale money markets.
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Money markets are pricing in three more hikes from the Bank of Canada by the end of 2018, outpacing expectations for the Federal Reserve which is the only other major central bank to have raised rates this year.
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NEW YORK (Reuters) - The U.S. Federal Reserve might announce the end of bank reserves run-off, perhaps as early as Wednesday in a move that would help stabilize money markets, J.P. Morgan and UBS economists said on Wednesday.
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Interest rates in U.S. money markets shot up to as high as 10% for some overnight loans on Tuesday amid a cash crunch, and the Fed was expected to step in to support the market again on Wednesday.
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NEW YORK, Sept 23 (Reuters) - New York Federal Reserve President John Williams on Monday defended the bank's handling of volatility in money markets last week, saying officials anticipated the liquidity crunch and were successful in easing the markets.
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Judging from the difference between December- and April-dated Eonia overnight rates, money markets are pricing in a 70 percent chance of a further 10 basis point cut in the ECB's deposit rate to minus 0.50 percent this year.
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The central bank has also increased its purchases of Treasury securities in order to ensure low rates in short-term money markets, a development that injects fresh money into financial markets and which observers view as beneficial for stocks.
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Another jump in inflation numbers on Tuesday pushed money markets close to fully pricing in a rise in rates within the next 12 months to prevent another dive in the currency that would raise prices of imported goods further.
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The Brexit optimism had led money markets to slash the chances of interest rate cuts next year but those estimates are creeping higher again, with a cut now 90% priced for December 2020, up from 60% a week ago.
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China's benchmark overnight repo rate fell to a four-year low of nearly 1% in late June as the central bank poured funds into money markets ahead of a seasonal surge in cash demand at the end of June.
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While U.S. money markets are pricing in roughly two rate hikes by January 2020 and the bond yield curve inverted further overnight, signalling rising recessionary risks for the world's biggest economy, demand for dollars show no signs of abating.
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China injected liquidity into money markets, while the price of oil, one of Canada's major exports, rallied on hopes for new output curbs from OPEC and its allies to offset any potential drop in demand triggered by the virus.
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The Brexit optimism had led money markets to slash the chances of interest rate cuts next year but those estimates are creeping higher again, with a cut now 90% priced for December 2020, up from 60% a week ago.
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His comments on Wednesday affirmed market expectations - money markets expect one rate cut later this month and a cumulative 68 basis points of cuts until the end of 2019 - but market watchers said Powell's views will drive the dollar.
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The People's Bank of China (PBOC) injected nearly $20 billion into money markets, its largest cash injection since September, Reuters reported, noting traders suspected the PBOC was using state banks to prop up the yuan at the same time.
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In Europe, where the lowest deposit rate set by central banks acts as a floor for interest rates in money markets, and thus for rates on loans more generally, the benchmark for borrowing rates has never been so low.
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Money markets are not pricing in a rate hike from the ECB for the next 21 months after investors pushed back their expectations by around a year in recent weeks due to weak growth and cautious rhetoric from policymakers.
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LONDON, May 16 (Reuters) - Euro zone money markets are reflecting rising expectations for an interest rate cut from the European Central Bank by year-end, given growing concerns about the growth outlook and the impact of global trade tensions.
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NEW YORK (Reuters) - A key bank borrowing cost for three-month dollars on Thursday posted its biggest daily increase in over three weeks to reach its highest level since May 2009, suggesting tightening conditions in money markets for dollars.
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LONDON, June 24 (Reuters) - Investors in money markets expect the European Central Bank to cut interest rates by September in efforts to safeguard the bloc from any economic shock resulting from Britain's vote to leave the EU on Friday.
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Money markets price in two 10 basis point cuts this year to the ECB's deposit rate, currently -0.30 percent, with the first expected at the ECB's March meeting, which Draghi has said will include a review of its policies.
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The overnight drop in global bond yields has boosted interest rate cut bets across global markets, with money markets pricing in three Fed rate before the end of the year and as many as five cuts until mid-2020.
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Money markets expect the Fed, which raised interest rates in September for the third time this year to a range of 2 percent to 2.25 percent, to hike an additional 65 basis points by the end of next year.
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"Although the Governing Council does not see material signs of strains in money markets or liquidity shortages in the banking system, these operations will provide an effective backstop in case of need," the central bank said in a statement.
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Money markets are now pricing in a 231% chance for a 22014 basis point cut in rates at the end of this month from the current level of 0.75%, down from close to a 50% chance earlier on Tuesday.
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Analysts said the pound had weakened because traders were taking profits on recent gains in the currency, and because money markets still priced in a 50% chance of a rate cut when the Bank of England meets next Thursday.
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Money markets are now pricing in a 20133-100 percent chance of a 10 basis-point deposit rate cut to -0.40 percent, judging from the difference between spot overnight EONIA rates and forward EONIAs dated for future ECB meetings.
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Fed officials have characterized it as a "technical move" meant to shore up money markets, differentiating it from the bond purchases made during the crisis, which were meant to bring down long-term interest rates and boost the economy.
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LONDON, Feb 26 (Reuters) - Euro zone money markets started to fully price in a December rate cut from the European Central Bank on Wednesday, as the spread of coronavirus outside of China pushed traders to ramp up stimulus expectations.
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U.S. two-year Treasury yields fell and the curve steepened in Asia after U.S. Federal Reserve Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases to address a recent spike in money markets rates.
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Money markets are now pricing in a 20163% chance for a 22016 basis point cut in rates at the end of this month from the current level of 231%, down from close to a 22014% chance earlier on Tuesday.
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The gap between the two interest rates suggested tighter conditions in money markets last week as investors withdrew huge amounts of cash from bank and money market amounts to make their annual tax payments by the April 15 deadline.
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Fed officials have characterized it as a "technical move" meant to shore up money markets, differentiating it from the bond purchases made during the crisis, which were meant to bring down long-term interest rates and boost the economy.
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The Hong Kong Monetary Authority said on Thursday that the U.S. Federal Reserve's overnight decision to keep the policy rate unchanged was expected by the market, and that Hong Kong's foreign exchange and money markets continue to operate smoothly.
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His failure to give any hints that the central bank was weighing interest-rate cuts disappointed the S&P500 and pushed money markets to slash rate-cut bets for this year to around 40 percent from over 60 percent.
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Euro zone money markets now price roughly a 75 percent chance of a 10 basis point hike from the European Central Bank by mid-2019, scaling back bets on a rate rise given a softening in economic data and inflation.
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Market expectations for Fed rate increases in the money markets were barely for one more rate hike next year, even though some banks such as JP Morgan expect the Fed to raise interest rates as much as four times in 2019.
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Frenchman Christian Bittar, a Singapore-based star trader who was once one of Deutsche Bank's most profitable money markets managers, will be joined in court by former German colleagues Achim Kraemer, Andreas Hauschild, Ardalan Gharagozlou, Joerg Vogt and Kai-Uwe Kappauf.
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Money markets are now pricing in roughly two U.S. rate cuts by the start of next year and the European Central Bank is set to turn on its money taps again next month as trade worries weigh on the global economy.
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Patel, whose remit at the RBI included managing money markets, has faced criticism from market participants however, with some traders and bankers complaining that he kept liquidity tight at a time when the RBI was lowering rates, starving banks of cash.
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A "yes" vote would mean banks could lend only the money they administer in savings accounts, or what they get from relatively expensive money markets and the SNB, and it would crimp the SNB's ability to intervene in currency markets.
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"Recent strains in money markets added to this overall adverse landscape," the BIS said, noting that U.S. money market regulatory reform has led to heavy outflows of around $250 billion from the sector and pushed up Libor rates and spreads.
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SHANGHAI (Reuters) - China's smaller banks and brokers are turning to stock exchanges to borrow short-term cash this week to escape the typical end of June pressure in money markets and more recent worries over credit risks in the sector.
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A quarter-point cut by the U.S. central bank has been fully priced in by money markets, but investors will be looking at the comments with the decision for signs of how far it could go with further easing this year.
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Money markets are assigning a 51% probability of a 10 basis point deposit rate cut, with a Reuters poll expecting the ECB to change its forward guidance towards more easing this week and move to cutting interest rates only in September.
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His comments did little to change market expectations -- money markets expect one rate cut later this month and a cumulative 68 basis points of cuts until the end of 2019 -- but market watchers said Powell's views will drive the dollar.
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The main driver for a cut is the increasingly expansive mood at the ECB, with money markets pricing in around a 40% chance of a 10 basis point cut in its own deposit rate -- currently -0.40% -- when policymakers meet on Thursday.
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However, all eyes were on the Fed's policy statement, due at 1800 GMT, with money markets pricing in a roughly 80% chance that the U.S. central bank will cut rates by 25 basis points, in preference to a 2.93-point cut.
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"The MPA would have a relatively big impact on the bond market," said Northwest's Hu. So far though, the impact has been contained within money markets, mainly seen in a surge in demand and rates on overnight loans and NCDs.
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Money markets continue to price in around a 70 percent chance of a 10 basis point rate rise from the ECB by year-end, suggesting investors believe the days of the bank's ultra-easy monetary policy stance are nearing an end.
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Patel, whose remit at the RBI included managing money markets, has faced criticism from market participants, however, with some traders and bankers complaining that he kept liquidity tight at a time when the RBI was lowering rates, starving banks of cash.
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The main driver for a cut is the increasingly expansive mood at the ECB, with money markets pricing in around a 40% chance of a 10 basis point cut in its own deposit rate — currently -0.40% — when policymakers meet on Thursday.
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As a result of heightened market volatility, average daily trading volume across rates, credit, money markets and equities surged 40 percent year-on-year to $617.4 billion — representing a new record for Tradeweb, the platform said in its monthly activity report.
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In its third-quarter monetary policy implementation report, the People's Bank of China said it will maintain a prudent monetary policy, fine-tuning in a preemptive and timely way and using multiple monetary policy tools flexibly to keep money markets stable.
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Euro zone money markets now price roughly a 75 percent chance of a 113 basis point hike from the European Central Bank by mid-2019, scaling back bets on a rate rise given a softening in economic data and inflation.
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The rate increase came after the central bank made its largest weekly liquidity injection on record into money markets last week as China geared up for the long Lunar New Year holiday, fuelling speculation that it was loosening its stance.
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The overnight drop in global bond yields has boosted rate cut bets across global markets with money markets pricing in three rate cuts from the Fed before the end of the year and as many as five cuts until mid 2020.
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His comments did little to change market expectations — money markets expect one rate cut later this month and a cumulative 68 basis points of cuts until the end of 2019 — but market watchers said Powell's views will drive the dollar.
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Money markets are pricing around a 30 percent chance that the European Central Bank cuts rates by a further 10 basis points to minus 0.50 percent next week, and a cut is fully priced in by the end of the year.
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Even as an anticipated rate cut on Wednesday from the U.S. Federal Reserve would be expected to push T-bill rates lower, this spike in bill supply will likely cause interest rates in money markets to rise at least temporarily.
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BEIJING/SHANGHAI (Reuters) - China took aggressive steps on Wednesday to head off signs of growing risks in its financial and banking system, unveiling detailed rules to curb an unruly peer-to-peer (P2P) lending sector and intervening in its money markets.
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Tightening in the money markets, and an unexpected push of the fed funds rate toward the high end of its target range, would be key factors in prompting the Fed to re-examine its policy normalization efforts from financial crisis extremes.
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According to minutes from the May meeting, FOMC officials are concerned that the funds rate is rising a bit more quickly than anticipated, causing a tightening in money markets that would make a more aggressive unwind of the balance sheet problematic.
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Stronger data, rhetoric from the Federal Reserve and a resulting shift on money markets has revived expectations among hedge funds of a new rally for the U.S. currency, which came within sight of parity with the euro a year ago.
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The offering is enabled by the fact that Jyske Bank can go into money markets and borrow from institutional investors at a negative rate and is in turn passing this deal along to customers, Jyske's housing economist Mikkel Høegh said.
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On Thursday a working group which includes the major banks and industry bodies that use money markets will announce what has been chosen as the new 'risk-free' rate to replace EONIA which regulators say must be scrapped by 2020.
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At the time, 95 billion euros was an astronomical sum which many observers believed would unblock the global money markets through which trillions of dollars of interbank lending flows and upon which the world economy and financial system is built.
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Money markets, which have moved to price in about a 210 percent chance of an interest rate cut this year, now will look to a speech by Bank of Canada Deputy Governor Lynn Patterson for further guidance on the rate outlook.
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Money markets are assigning a 55% probability of a 10 basis points deposit rate cut with a Reuters poll expecting the ECB to change its forward guidance towards more easing this week and move to cutting interest rates only in September.
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"We're seeing a flight to safety here, money leaving equities, a lot of money going to money markets," cash-like investments that took in $30.8 billion during the week, said Pat Keon, senior research analyst for Thomson Reuters' Lipper unit.
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"Banks' overnight lending in the money markets has stood around 90 percent of their total (money market) lending since the start of this year," said a source, who declined to be identified because he was not authorized to talk to media.
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LONDON, Sept 2 (Reuters) - Euro zone money markets are now pricing in a 60% chance of a 20 basis-point cut in interest rates at the European Central Bank's September meeting, starting to bet on a bigger move than previously anticipated.
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Money markets that had assigned a roughly 20.7925% probability to a December 2019 rate cut, raised this to 57% after a speech by BOE Governor Mark Carney who flagged uncertainties stemming from trade disputes and Britain's departure from the European Union.
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TORONTO, March 23 (Reuters) - The Bank of Canada's first operation under the Bankers' Acceptance Purchase Facility (BAPF) showed dealers bidding aggressively for funding, a sign that there is some way to go before stress is reduced in Canadian money markets.
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This current round of bond buying, the Fed has said, is focused on pumping money into the short-term money markets in order to address technical issues that have resulted in worrying spikes in borrowing costs over the last year.
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If the good news can continue, and the economy holds off a recession, that means there will be plenty of dry powder on the sidelines to fuel another acceleration on Wall Street, due to the big move to money markets.
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NEW YORK (Reuters) - A gauge of stress in the U.S. money markets grew to its highest level in more than six years on Thursday, bolstering the risk of further increase in the costs for banks and other companies to borrow dollars.
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Analysts are watching the impact of tiering on money markets, as the system, which exempts banks from paying the ECB the deposit rate of -0.50% on part of their excess cash, had stoked fears that short-term interest rates could increase.
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But then when you look beyond 2019, there's not a single voter who says any more than one cut... That one remaining cut is three cuts fewer than the money markets had been pricing in over the next 12 months.
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Stone says the shuffle of cash into money markets in recent years makes sense — stocks had been bid up to record high levels again, and the Federal Reserve until 2018 had been raising rates, making for decent yield in Treasuries.
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MARKET NEWS * The dollar rose to a three-week high against a basket of currencies on Thursday, helped by continued tightness in U.S. money markets, while heightened political tensions and a gloomy economic outlook weighed on the euro and sterling.
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" CLIFF TAN, EAST ASIAN HEAD OF GLOBAL MARKETS RESEARCH, MUFG "This is largely an incident that is isolated to U.S. money markets…Ultimately, there's enough dollars around the world that there won't be a contagion effect coming over to Asia.
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FRANKFURT (Reuters) - The European Central Bank sees "very little evidence" of higher rates in the money markets as a result of its decision to create a two-tier rate on deposits, the ECB's Vice President Luis de Guindos said on Tuesday.
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That provides more fuel for the argument that the UK economy will bounce quickly after the referendum, potentially turning minds back towards the possibility of a rise in interest rates - something money markets have ruled out for the next five years.
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FRANKFURT (Reuters) - The European Central Bank sees "very little evidence" of higher rates in the money markets as a result of its decision to create a two-tier rate on deposits, the ECB's Vice President Luis de Guindos said on Tuesday.
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NEW YORK, Sept 18 (Reuters) - The U.S. Federal Reserve might announce the end of bank reserves run-off, perhaps as early as Wednesday in a move that would help stabilize money markets, J.P. Morgan and UBS economists said on Wednesday.
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But expectations of more fiscal stimulus could mean money markets further pare back the likelihood of a Bank of England interest rate cut; they already do not price in a full 25 basis-point cut until the end of 2021.
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"The implementation of measures to mitigate the impact of negative rates on central bank deposits is complex and could inadvertently create arbitrage opportunities for some banks, thus harming the money markets functioning and monetary policy transmission," Giuseppe Maraffino, an analyst at Barclays, said.
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The People's Bank of China injected a net 26.8 billion yuan ($22017 billion) into money markets through open market operations on Friday, bringing total net injections this week to 7.33 trillion yuan, the biggest weekly injection on record, according to Reuters calculations.
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Money markets have priced in a substantial chance of a cut in Bank of England interest rates by the end of the year, a reflection of concerns over the impact of a Brexit - or the turbulence caused by the vote alone - on growth.
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In addition to Monday's Chinese stock selloff, the yuan currency had its worst day since August, and Shanghai-traded commodities from oil to copper hit their lower limits - all despite the central bank's injection of 1.2 trillion yuan ($174 billion) into money markets.
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NEW YORK, May 25 (Reuters) - A key measure of bank borrowing costs for three-month dollars fell to an eight-week low on Friday, signaling the growing cash available in money markets as the U.S. government has reduced its sale of Treasury bills.
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"Treasury (repo) volatility has raised questions as to how and when the Fed steps into money markets to intervene in order to cap or smooth volatile repo markets," strategists Mark Cabana and Olivia Lima wrote in a research note released on Friday.
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In addition to Monday's Chinese stock selloff, the yuan currency had its worst day since August, and Shanghai-traded commodities from oil to copper hit their lower limits - all despite the central bank's injection of 1.2 trillion yuan ($174 billion) into money markets.
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Following the spike in repo rates, the Fed has taken action to keep the money markets swimming in cash, by expanding the size of its open market operations and also to increase its balance sheet by adding Treasury bills to its holdings.
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Though money markets have trimmed bets on a 10 basis point deposit rate cut from the ECB to less than 9.41243% from roughly 60% on Friday, analysts expect dovish forward guidance and possibly more generous terms for its planned new multi-year loans.
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Elsewhere on Wednesday, China's central bank chose to inject 90 billion yuan ($13.55 billion) into the money markets through seven-day reverse bond repurchase agreements (repos) and an extra 50 billion yuan through 14-day reverse repos, traders said according to Reuters.
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Money markets have fully priced in a quarter point cut in the Bank's main interest rates and many economists expect it to provide other measures to push more credit through an economy already showing signs of slowing after last month's Brexit vote.
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Money markets are now pricing in a 90 to 20133 percent chance the ECB will cut the deposit rate 10 basis points to -0.40 percent, judging from the difference between spot overnight EONIA rates and forward EONIAs dated for future ECB meetings.
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Money markets have fully priced in a quarter-point cut to the central bank's main interest rates, and many economists and investors expect it to muster other measures to bolster the economy after Britain's vote in June to quit the European Union.
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SHANGHAI (Reuters) - As China's banks prepare for a rigorous quarterly inspection of their books by the central bank, the ructions in money markets and an explosion in inter-bank borrowing show how addicted they are to risky methods of funding and investments.
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For weeks, money markets have bet on a 25 basis point rate reduction in July, CME Group's FedWatch tool shows, and while chances of a half-point cut briefly shot up to 60% in mid-July, they have settled back at around 25%.
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Though money markets have trimmed bets on a 10 basis point deposit rate cut from the ECB to less than 10% from roughly 60% on Friday, analysts expect dovish forward guidance and possibly more generous terms for its planned new multi-year loans.
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Money markets indicate that expectations for the ECB's first rate hike have been pushed to late next year; trade tensions, emerging market turmoil and Italian budget uncertainties are causing investors to question how far authorities can get in dismantling crisis-era policies.
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LONDON, Oct 12 (Reuters) - For all the speculation in the past week about a "tapering" of ECB asset purchases, trade in money markets suggests some investors are betting on the central bank pursuing its bond buying spree by removing its self-imposed floor.
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Money markets have fully priced in a quarter-point cut to the central bank's main interest rates, and many economists and investors expect it to muster other measures to bolster the economy roiled by Britain's vote in June to exit the European Union.
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As for the recent outperformance of defensive stocks like utilities, consumer staples, and dividend-paying equities, Saut chalked that up to seniors who are "desperately seeking savings" in an environment where yield is hard to come by in money markets and bonds.
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Money markets expect about two 25-basis-point rate cuts from the Bank of Canada by the end of 2020 but that is much less than the roughly 100 basis points of easing expected over the same period from the U.S. Federal Reserve.
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The People's Bank of China injected a net 20173 billion yuan ($22017 billion) into money markets through open market operations on Friday, bringing total net injections this week to 21 trillion yuan, the biggest weekly injection on record, according to Reuters calculations.
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The recent widening of the Libor/OIS spread kindled concerns of stress in money markets, but most analysts have blamed the move on a mismatch in supply and demand for dollars rather than an omen of troubles brewing in the banking sector.
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The dollar surprised many analysts last week by struggling as money markets flipped to back a rise in official U.S. interest rates this month, and a number point to muted moves in 10-year yields as one element holding the currency back.
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Money markets show less than a 20 percent chance of a rate hike this year, and only coming in December if at all, according to CME's FedWatch Tool, while there is even a very slim chance of rate cuts in coming months.
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NEW YORK, Aug 103 (Reuters) - A closely watched measure of the cost for banks to borrow dollars posted its first weekly decline since June, signaling less strain in U.S. money markets amid reduced demand from market funds to hold short-term bank debt.
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U.S. money markets though, where the real money sits, are now pricing in only one rise next year, and the yield on two-year U.S. Treasury notes, sensitive to Fed shifts, is at 2.81 percent from almost 3 percent earlier in the month.
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NEW YORK (Reuters) - U.S. fund investors sought shelter during the latest week, pouring more than double the amount from the previous week into money markets, and stockpiling the most in "safe haven" Treasuries in more than a year, Lipper data showed on Thursday.
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For weeks, money markets have bet on a 25 basis point rate reduction in July, CME Group's FedWatch tool shows, and while chances of a half-point cut briefly shot up to 60% in mid-July, they have settled back at around 33%.
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Judging from the difference between spot overnight interbank lending rates and forward rates dated according to the ECB meeting calendar, money markets are pricing in a less than a 10 percent chance rates will be cut a further 10 basis points in January.
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Sterling money markets moved to price in further falls in the Bank of England's interest rates after it said most of its policymakers are likely to back a cut to zero if economic data was in line with forecasts in the months ahead.
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SHANGHAI/SINGAPORE (Reuters) - China's money markets are bracing for a rough transition into 22017 as a traditional year-end cash deficit coincides with heavy capital outflows and a disruptive bond default that are creating sporadic cash shortages and ramping up counterparty risk.
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If the commercial banks are advised to get rid of their Qatari assets in a short timeframe, or if authorities act against Qatari banking assets in their jurisdictions, that could provoke retaliation by Doha and turmoil in the Gulf banking and money markets.
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LONDON (Reuters) - Money markets on Friday were pricing in even less chance of a Bank of England rate rise in 2019 than on Thursday, with investors dialing back expectations of monetary tightening as Prime Minister Theresa May battles to salvage her Brexit deal.
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LONDON (Reuters) - Euro zone money markets are pricing less than a 55.13 percent chance of a 10 basis point interest-rate rise from the European Central Bank by mid-2019, scaling back rate hike bets after Wednesday's weaker-than-expected business activity data.
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Hauschild, who was in charge of money markets in continental Europe and worked at Deutsche Bank between 1988 and 2006, picked out examples where his trading book was at odds with rate requests in the team or with Deutsche Bank's rate submissions.
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Waddington said that Hauschild, who joined Deutsche Bank in 1988, left toward the end of 2006 and was in charge of money markets in continental Europe, sometimes ignored Bittar's rate requests because they interfered with his own "similarly dishonest money-making plans".
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The central bank has also been increasing the size of its balance sheet since mid-October by purchasing $60 billion a month in short-term Treasury bills, an effort policymakers have characterized as a "technical" move meant to boost liquidity in money markets.
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Money markets were pricing in a 300 basis point cut by the central bank when it meets on Thursday and the lira's drop matched the length of the losing run it saw when it hit its lows for the year back in May.
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Money markets expect the Bank of Canada, which has worried about the risks trade wars pose to the global economy, to leave its benchmark interest rate on hold at next week's policy announcement but to ease by the end of the year.
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LONDON, March 2 (Reuters) - Euro zone money markets were on Monday pricing in a 10 basis point (bps) rate cut at the European Central Bank's April meeting, and around a 65% chance that it could move at its March 12 policy gathering.
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The European Central Bank (ECB), desperate to boost inflation, is restarting QE. For a while the Fed managed to shrink its balance-sheet, but since September its assets have started to grow again as it has injected liquidity into wobbly money-markets.
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While the U.S. currency has been in favour for several years thanks to its relatively high interest rate and a strong economy, the ongoing trade war with China and a scramble for funding in U.S. money markets has added fuel to the fire.
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A gauge of stress in the U.S. money markets climbed to its highest level in nearly nine years on Friday on concerns about growing costs for banks and other companies to borrow dollars and further interest rate increases from the Federal Reserve.
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For now, Fed officials will probably signal that they are ready to act to keep money markets under control headed into the end of the year, when banks tend to hoard their reserves for regulatory reasons, potentially pushing repo rates up again.
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U.S. money markets though, where the real money sits, are now pricing in only one rise next year, and the yield on two-year U.S. Treasury notes, sensitive to Fed shifts, is at 21 percent from almost 251.38 percent earlier in the month.
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FRANKFURT, Sept 25 (Reuters) - The European Central Bank's new benchmark rate for inter-bank lending, ESTR, has fully priced in the ECB's latest cut, showing money markets in the euro zone are working well, ECB board member Benoit Coeure said on Wednesday.
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Money markets moved fully to price in a cut in official interest rates by December, anticipating that the Bank of England will need to take steps to prop up an economy that has already slowed in the run in to Thursday's vote.
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A gauge of stress in the U.S. money markets climbed to its highest level in nearly nine years on Tuesday on concerns about growing costs for banks and other companies to borrow dollars and further interest rate increases from the Federal Reserve.
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The French complaint said that the U.S. Department of Justice had described BNP Paribas as Sudan's de facto central bank because it gave the Sudanese government access to international money markets, and allowed it to pay staff, the military and security forces.
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That was the month, you may recall, when global money markets first froze up because of losses on United States mortgage-related bonds: early tremors of what would become a recession four months later and a global financial crisis nine months after that.
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On Sunday, in a further message of reassurance to investors, the PBOC said in a statement that it is not currently planning more bank takeovers and that it will use various monetary policy tools to stabilize money markets and boost banking system liquidity.
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The PBOC has drained 815 billion yuan ($118.18 billion) on a net basis from money markets via open market operations so far this year, but has still stepped in and injected funds from time to time when markets appeared to be growing too stressed.
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NEW YORK, March 26 (Reuters) - A gauge of strain in the U.S. money markets on Monday retreated for the first time in three weeks even as borrowing costs edged higher in the wake of an interest rate increase from the Federal Reserve last Wednesday.
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The gap between the three-month dollar London interbank offered rate USD3MFSR= and three-month overnight indexed swap rate USD3MOIS=, a gauge of stress in the U.S. money markets, climbed to its highest level in nearly nine years, on Friday, according to Thomson Reuters data.
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Given that money markets <0#FF:> are pricing in only about a 50 percent chance of a rate hike by the Fed in June, with hardly any significant likelihood in April factored in, signs of a tightening in the next quarter could rattle financial markets.
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A quarter-point cut by the Fed on Wednesday has been fully priced in by money markets, but investors will be looking at the comments with the decision for signs of how far it could go with further easing this year to support growth.
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LONDON (Reuters) - Euro zone money markets no longer expect the European Central Bank to raise interest rates in the next 210 months and have pushed rate hike expectations out to October 22019 from June 22019 as economic growth slows and Italy's political crisis worsens.
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RATE CUT BETS The overnight drop in global bond yields has boosted rate cut bets across global markets with money markets pricing in three rate cuts from the Fed before the end of the year and as many as five cuts until mid 2020.
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Investors are focussed on the ECB meet on Thursday, with money markets pricing in a more than 50% chance of a 10 basis point cut in interest rates and bond investors expecting at least a clear promise of action in September to counter slowing growth.
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"Investors are, I think, severely under-invested: Cash balances are very high, and as central banks make progress towards their inflation targets, if you're sitting in Europe or Japan with zero- or negative-yielding money markets, inflation is like termites eating your house," he argued.
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Further injections into money markets via reverse repo rates could also be on the table after the PBOC increased the frequency of open market operations to daily from twice a week in order to meet demand ahead of the week-long Lunar New Year holiday.
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That is all but fully priced in to money markets, compared to a 30 percent probability a week ago and less than 20 percent a week before that - yet the dollar is still short of even last month's highs against the euro and yen.
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With China's currency the yuan still under pressure, the central bank has increasingly relied on supplementary monetary tools such as the MLF and short term capital injections through money markets - rather than interest rate cuts - to maintain banking sector liquidity and conduct monetary policy.
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Forecasters are divided on whether the central bank will raise rates but data from the overnight index swaps market shows that money markets are almost fully priced for an increase, while an 80 percent chance of a second hike has been implied by December.
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Meanwhile, oil prices plunged more than 30 pct since early October, senior Fed officials have started to indicate rates may not have much more to go on the upside, and money markets have moved to price in only one full quarter-point hike next year.
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Money markets continue to price in a substantial chance of a cut in Bank of England interest rates by the end of the year, a reflection of concerns over the impact of a Brexit - or the turbulence caused by the vote alone - on growth.
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Money markets price in less than a 20 percent chance of a 10 basis point rate cut this week, with the Bank of England's decision last week to leave rates on hold at its first meeting after Brexit easing expectations of imminent ECB action.
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LONDON, Sept 10 (Reuters) - The European Money Markets Institute, the administrator of some of the benchmarks caught up in a global rate-rigging scandal, said on Monday it had abandoned efforts to create a new transaction-based reference index for the 'secured' interbank market.
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BRUSSELS, Nov 13 (Reuters) - A repo squeeze that hit U.S. money markets two months ago is unlikely to be repeated in Europe, given measures taken in recent years by the European Central Bank, panelists taking part in a bond conference debate said on Wednesday.
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LONDON, Feb 10 (Reuters) - German short-term debt yields were just off record lows before a two-year bond auction on Wednesday as money markets saw chances the European Central Bank will cut its deposit rate by more than 10 basis points in March.
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Dealers cautioned money markets were not showing signs of stress and the large amounts did not necessarily mean that one or more euro zone banks were struggling to raise dollars, as they did at the height of the crises in 2008 and 2011 EURCBS3M=ICAP.
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For years investors in stocks have assumed the Fed granted them a put option, effectively providing insurance against a market fall, by flooding money markets with cash and buying government bonds to keep interest rates low whenever economic growth slumped or geopolitical risks rose.
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A Reuters poll last month suggested the Bank of England would raise Bank Rate next year, but weak economic figures and a speech by Governor Mark Carney on Tuesday have convinced money markets to price in a rate cut over the next 12 months.
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The central bank injected the most cash into the banking system in four months at the end of May to stabilize nervous money markets after the government seized control of troubled regional lender Baoshang Bank, the first state takeover of a bank in two decades.
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Money markets are fully pricing in a cut of at least 0.25 percentage point to the current 1.50%-1.75% target rate at the Fed's March 17-18 meeting as well as a 2.43 percentage point cut to the ECB's key rate at March 12 meeting.
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Harker also said the Fed is still learning from the measures it is taking to calm money markets after a shortage of cash in mid-September caused a spike in short-term borrowing rates, repeating remarks he made earlier this week in New York.
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NEW YORK (Reuters) - The average interest rate on what the banks charge each other to borrow reserves overnight on Thursday fell below the upper-end of the Federal Reserve's target range for the first time this week in the aftermath of turmoil in money markets.
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Uncertainty stemming from the potential economic impact of coronavirus has boosted demand for safe-haven bonds in recent weeks, while money markets have started to price a higher probability of a rate cut from the European Central Bank by the end of the year.
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Three-month 'forward starting swaps' - an indicator of what money markets expect to be charging for three month-funding in three months time — are at 17.15 percent — up a bit on Turkey's top 'late liquidity window' rate after this week's policy tightening TRLLW=ECI.
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The New York Fed said last week it will purchase $60 billion in short-term Treasury bills through mid-December, keeping up the same pace for the balance sheet expansion program it launched last month in an effort to shore up liquidity in money markets.
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The New York Fed said last week it will purchase $60 billion in short-term Treasury bills through mid-December, keeping up the same pace for the balance sheet expansion program it launched last month in an effort to shore up liquidity in money markets.
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NEW YORK (Reuters) - A gauge of stress in the U.S. money markets climbed to its highest level in nearly nine years on Tuesday on concerns about growing costs for banks and other companies to borrow dollars and further interest rate increases from the Federal Reserve.
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NEW YORK (Reuters) - Boston Federal Reserve President Eric Rosengren on Tuesday said his preference for mitigating volatility in money markets would be for the central bank to continue to maintain its bond portfolio at a sufficient size, as opposed to relaxing bank capital requirements.
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LONDON, Nov 22 (Reuters) - A sudden jump in the European Central Bank's new ESTR overnight interest rate this week was triggered by French banks bidding for extra cash as part of contingency tests, two sources familiar with the bloc's money markets said on Friday.
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Money markets are fully pricing in a cut of at least 2107 percentage point to the current 21.1146%-21.1185% target rate at the Fed's March 211-24 meeting as well as a 47.43 percentage point cut to the ECB's key rate at March 247.4 meeting.
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BALTIMORE (Reuters) - Having successfully avoided a liquidity crunch in money markets at the end of the year, Federal Reserve officials can now focus on finding a long-term solution for stabilizing short-term interest rates, Richmond Federal Reserve president Thomas Barkin said on Friday.
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While traders are sticking to bets that the Fed will cut again in September, money markets have now ruled out a half-point move, and Fed Chair Jerome Powell's speech at an annual gathering in Jackson Hole on Friday may prove crucial to short-term sentiment.
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"If they wanted to pull the nuclear switch, if they committed to dumping Treasuries, it would have an immediate and temporary impact on money markets in the United States," said Jeff Klingelhofer, a portfolio manager who oversees more than $6 billion at Thornburg Investment Management Inc.
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NEW YORK (Reuters) - A key gauge on U.S. interbank borrowing costs fell for the first time since August on Friday as trading volume rose to its highest level in over a month, implying less strain in money markets, New York Federal Reserve data released on Monday showed.
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Money markets are convinced the central bank will cut the key benchmark rate by 20.6887 basis points to between 20.1% and 21.1038% on Wednesday, but it remains to be seen whether this is going to be a one-off cut or whether more cuts will follow.
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SHANGHAI (Reuters) - China's benchmark overnight repo rate fell to a four-year low of nearly 1 percent on Friday as the central bank continued to inject funds into money markets to ensure ample liquidity ahead of a seasonal surge in cash demand at the end of June.
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That's on top of the the $60 billion in monthly purchases of Treasury bills, a move meant to wean money markets off of the daily operations by bringing reserves to a level that accommodates economic growth but is also enough to absorb any spikes in demand.
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The Commission said on Wednesday they were part of a seven-bank cartel that colluded between September 2005 and May 2008 to distort the Euribor interest rate which was set using quotes submitted by a panel of banks and is widely used in international money markets.
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Let's do some simple math: From my experience, people who invest in CDs, money markets and other lowing-paying interest rate investments do so for one of three reasons: If you're in the first category, you might want to consider staying in those types of investments.
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The penalty serves as a disincentive for dealers or investors to horde these safe-haven securities during periods of market stress, which can impede the smooth operation of important money markets like the $4 trillion repurchase agreement (repo) sector, as happened during the 2007-2009 financial crisis.
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Meanwhile, the market's measure of inflation expectations has been stuck below the Bank of Canada's 2 percent target since 2014, and money markets are betting that the overnight rate will be lower in one year's time than the central bank's current policy rate of 1.75 percent.
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A $2 trillion stimulus package agreed by U.S. politicians to shield the world's biggest economy and co-ordinated action by central banks including the BoE to boost the supply of dollars have helped ease stress in money markets and some of the selling pressure on sterling.
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LONDON, May 9 (Reuters) - Euro zone money markets now price roughly a 75 percent chance of a 10 basis point hike from the European Central Bank by mid-2019, scaling back bets on a rate rise next year given a softening in economic data and inflation numbers.
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In this period, other G10 banks are expected to either cut rates, or in the case of Sweden, to stay on hold, money markets show here (Graphic: The Lonely Hiker png, here) Globally too, Norway is an outlier - only Kazakhstan and Georgia have also recently hiked rates.
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The inflation data confirmed money markets' view that rate cuts from the Bank of England in 2020 are unlikely any time soon ; they currently see around 75% chance of a 25 basis-point cut by the end of the year, up from around 68% before the data.
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The Canadian dollar strengthened to a four-week high at 1.3275 to the U.S. dollar after the data, while money markets were factoring in a roughly 13 percent chance of a rate cut by year end, down from more than 25 percent ahead of the data.
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Given that money markets <0#FF:> are pricing in only about a 50-percent chance of a rate hike by the Fed in June, with hardly any likelihood of an April hike factored in, any signs of a tightening in the next quarter could rattle financial markets.
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The run of weak UK data, together with a general lurch towards dovishness by the U.S. Federal Reserve and other central banks, has prompted money markets to virtually price out any chance of a Bank of England interest rate rise in 2019, another factor likely to pressure sterling.
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