FUTURES & BONDS WEEK OF OCTOBER 16, 2017 B17 ...Copyright 2017 Investor's Business Daily Inc....
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Copyright 2017 Investor's Business Daily Inc. Key Financial And Commodity Futures BY BLOOMBERG NEWS European Central Bank officials are considering cutting their monthly bond buying by at least half starting in January and keep- ing their program active for at least nine months, according to officials familiar with the debate. Reducing quantitative easing to 30 billion euros ($36 billion) a month from the current pace of 60 billion euros is a feasible option, said the officials, who asked not to be identified because the delibera- tions are private. That reduced flow would match existing predictions from economists at institutions in- cluding ABN Amro Bank NV and Bank of America Merrill Lynch. Policymakers led by President Mario Draghi are becoming in- creasingly confident that they can agree on Oct. 26 to the specifics of how much debt the euro-area’s cen- tral banks will buy in the coming months. After more than 2-1/2 years of trying to revive the re- gion’s economy through bond pur- chases, some governors see the re- cent period of robust growth as a reason to rein in the support. Oth- ers are concerned that inflation re- mains too weak. “The package seems to mean that, yes, the ECB is taking a step down, but there is enough in terms of com- munication and guidance to keep markets calm and make sure finan- cial conditions remain easy,” said Nick Kounis, an economist at ABN Amro who is based in Amsterdam. “There seems to be a consensus on this coming together, a majority. Even some of the more hawkish members understand that you have to wind down QE very gradually.” While governors are split on the need to identify an end date for pur- chases, a pledge to keep buying bonds until September — with the proviso that it could be extended if needed — may offer grounds for compromise, the officials said. Any changes to the sum and time frame of QE easing would still fit into the ECB’s present guidance on monetary policy, a promise to a “sustained adjustment in the path of inflation consistent with its infla- tion aim.” It also pledges that if “the outlook becomes less favorable, or if financial conditions become in- consistent with further progress to- ward a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the program in terms of size and/or duration.” Policy members have yet to offi- cially discuss options, and aren’t scheduled to meet again as a group until Oct. 25, in preparation for their decision the next day. Such meetings have sometimes pro- duced outcomes that haven’t been clearly envisaged in advance. An ECB spokesman declined to comment. The euro was little changed on the day at $1.1830 at 10:08 a.m. in Frankfurt on Friday. German bund yields fell the most in almost three weeks as government bonds rose across the euro area. The institution’s chief economist, Peter Praet, has hinted on several occasions that he would prefer to allow QE to continue at a slower pace for longer if markets stay calm, arguing that a substantial amount of aid is still needed to spur inflation toward the ECB’s goal of running inflation just below 2%. S&P COMP. INDEX Dec 17 PRICE MO %F=94.3 %S=94.6 CLOSE 2551.00 OPEN INTEREST 54114 CME MINI DOW JONES Dec 17 PRICE MO %F=95.8 %S=95.7 CLOSE 228.24 OPEN INTEREST 155615 CBOT 10 YEAR TREASURY Dec 17 PRICE MO %F=48.8 %S=43.8 CLOSE 125-22 OPEN INTEREST 3136968 CBOT BRITISH POUND Dec 17 PRICE MO %F=38.6 %S=31 CLOSE 1.3317 OPEN INTEREST 178580 IMM JAPANESE YEN Dec 17 PRICE MO %F=56 %S=41.7 CLOSE 0.8962 OPEN INTEREST 248399 in 100th IMM EURO Dec 17 PRICE MO %F=51.4 %S=37.3 CLOSE 1.1858 OPEN INTEREST 437215 CME MINI NASDAQ 100 Dec 17 PRICE MO %F=97 %S=93.1 CLOSE 6074.00 OPEN INTEREST 279910 CME US TREASURY BONDS Dec 17 PRICE MO %F=44.6 %S=27.8 CLOSE 154-00 OPEN INTEREST 743894 CBOT US DOLLAR INDEX Dec 17 PRICE MO %F=50.4 %S=63.9 CLOSE 92.93 OPEN INTEREST 42690 ICE MEXICAN PESO Dec 17 PRICE MO %F=5.3 %S=8 CLOSE 0.5210 OPEN INTEREST 186147 in 10th IMM SWISS FRANC Dec 17 PRICE MO %F=41.6 %S=33.5 CLOSE 1.0306 OPEN INTEREST 51257 IMM EURODOLLARS Dec 17 PRICE MO %F=39 %S=27.2 CLOSE 98.50 OPEN INTEREST 1826713 IMM COCOA Dec 17 PRICE MO %F=76.6 %S=75.1 CLOSE 2087.0 OPEN INTEREST 110413 ICE GAS BLEND Dec 17 PRICE MO %F=42.7 %S=37.2 CLOSE 1.6008 OPEN INTEREST 115087 NYM WHEAT Dec 17 PRICE MO %F=19.2 %S=20.8 CLOSE 4.39½ OPEN INTEREST 256596 CBOT SOYBEAN OIL Dec 17 PRICE MO %F=47.6 %S=34.9 CLOSE 33.69 OPEN INTEREST 173373 CBOT LUMBER Nov 17 PRICE MO %F=88.3 %S=86.3 CLOSE 424.30 OPEN INTEREST 4187 CME CANADIAN DOLLAR Dec 17 PRICE MO %F=35.5 %S=26.6 CLOSE 0.8016 OPEN INTEREST 171887 IMM ORANGE JUICE Nov 17 PRICE MO %F=68.3 %S=79.1 CLOSE 151.60 OPEN INTEREST 4094 ICE COTTON 2 Dec 17 PRICE MO %F=42 %S=41.2 CLOSE 68.62 OPEN INTEREST 125532 ICE SOYBEAN MEAL Dec 17 PRICE MO %F=75.9 %S=67.2 CLOSE 328.60 OPEN INTEREST 152082 CBOT PLATINUM Jan 18 PRICE MO %F=68.1 %S=45.9 CLOSE 947.90 OPEN INTEREST 70505 NYM NIKKEI 225 AVGS. Dec 17 PRICE MO %F=82.8 %S=85.9 CLOSE 21015 OPEN INTEREST 38234 CME 5 YEAR TREASURY Dec 17 PRICE MO %F=36.1 %S=23 CLOSE 117-18 OPEN INTEREST 2969735 CBOT ECB Monthly Bond Buying Could Be Smaller In 2018 ";-ঞm] bv Ѵblb|;7 ŋ |_;v; =u;; ;;m|v bѴѴ CѴѴ r =-v|Ĵ !;]bv|;u moĹ -ѴѴ ƐĺѶƏƏĺѶƒƐĺƑƔƑƔ ou ]o |oĹ ĺbm;v|ouvĺ1olņ$u-7bm]"llb| TRADING SUMMIT LEARN ESSENTIAL STOCK TRADING STRATEGIES AT A FREE SUMMIT obm v =ou - =ѴѴ 7- o= 1olrѴbl;m|-u bm;vঞm] ;71-ঞom |o Ѵ;-um -0o| vbm] |u-7bm] -m7 bm;vঞm] bm ]uo|_ v|o1hvĺ A| |_; $u-7bm] "llb|ķ oĽѴѴ mo| omѴ ];| ঞrv om ;vv;mঞ-Ѵ bm;vঞm] v|u-|;]b;vķ 0| o bѴѴ -Ѵvo Ѵ;-um _o |o v|u;-lѴbm; ou v|o1h u;v;-u1_ -m7 ];| |_; lov| o| o= ru;lbl ruo71|v =uol m;v|ouĽv vbm;vv -bѴĺ © 2017 Investor’s Business Daily, Inc. Investor’s Business Daily, IBD, CAN SLIM, Leaderboard and corresponding logos are registered trademarks owned by Investor’s Business Daily, Inc. MarketSmith ® is a registered trademark of MarketSmith, Incorporated. "-|u7-ķ 1| ƑƐ ĺĺĺĺĺĺĺĺĺĺ )-v_bm]|om "-|u7-ķ o ƐƐ ĺĺĺĺĺĺĺĺĺĺ ";-Ѵ;ķ ) "-|u7-ķ o ƐѶ ĺĺĺĺĺĺĺĺĺĺ _o;mbķ , Money Rates Prime Rate: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.00 Base interest rate charged by major U.S. commercial banks on loans to corpora- tions. Discount Rate: Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.75 Secondary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.00 Rate charged by Federal Reserve System on loans to depository institutions Broker Call Loan Rate: . . . . . . . . . . . . . . . . 2.50 Rate charged on short-term loans to brokerage dealers backed by securities. Federal Funds Effective Rate: . . . . . . . 1.16 Rates on overnight loans among financial institutions. Certificates of Deposit: 1 month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.NA 3 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.28 6 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.45 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.76 Interest rate paid by dealers for certifi- cates of deposit based on the duration of the security. Jumbo CDs: 1 month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.16 3 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.32 6 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.49 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.78 London Interbank Offered Rate: 3 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.36 6 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.52 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.81 The average of rates paid on dollar deposits. Treasury Bill Auction Results: 3-months (as of Oct 10) . . . . . . . . . . . . . . . . . 1.085 6-months (as of Oct 10) . . . . . . . . . . . . . . . . . . . 1.22 Average discount rate for Treasury bills in minimum units on $10,000. Treasury Bill: 1-year, (as of Oct 10) . . . . . . . . . . . . . . . . . . . . . . . 1.35 Annualized rate on weekly average basis, yield adjusted for constant maturity. INVESTOR'S BUSINESS DAILY FUTURES & BONDS WEEK OF OCTOBER 16, 2017 B17
Transcript of FUTURES & BONDS WEEK OF OCTOBER 16, 2017 B17 ...Copyright 2017 Investor's Business Daily Inc....
Copyright 2017 Investor's Business Daily Inc.
Key Financial And Commodity Futures
BY BLOOMBERG NEWS
European Central Bank officialsare considering cutting theirmonthly bond buying by at leasthalf starting in January and keep-ing their program active for at leastnine months, according to officialsfamiliar with the debate.
Reducing quantitative easing to30 billion euros ($36 billion) amonth from the current pace of 60billion euros is a feasible option,said the officials, who asked not tobe identified because the delibera-tions are private. That reduced flowwould match existing predictionsfrom economists at institutions in-cluding ABN Amro Bank NV andBank of America Merrill Lynch.
Policymakers led by PresidentMario Draghi are becoming in-creasingly confident that they canagree on Oct. 26 to the specifics ofhow much debt the euro-area’s cen-tral banks will buy in the comingmonths. After more than 2-1/2years of trying to revive the re-gion’s economy through bond pur-chases, some governors see the re-cent period of robust growth as areason to rein in the support. Oth-ers are concerned that inflation re-mains too weak.
“The package seems to mean that,yes, the ECB is taking a step down,but there is enough in terms of com-munication and guidance to keepmarkets calm and make sure finan-cial conditions remain easy,” saidNick Kounis, an economist at ABNAmro who is based in Amsterdam.“There seems to be a consensus onthis coming together, a majority.Even some of the more hawkishmembers understand that you haveto wind down QE very gradually.”
While governors are split on theneed to identify an end date for pur-chases, a pledge to keep buyingbonds until September — with theproviso that it could be extended ifneeded — may offer grounds forcompromise, the officials said.
Any changes to the sum and timeframe of QE easing would still fitinto the ECB’s present guidance onmonetary policy, a promise to a“sustained adjustment in the pathof inflation consistent with its infla-tion aim.” It also pledges that if “theoutlook becomes less favorable, orif financial conditions become in-consistentwith further progress to-ward a sustained adjustment in thepath of inflation, the GoverningCouncil stands ready to increasethe program in terms of size and/orduration.”
Policy members have yet to offi-cially discuss options, and aren’tscheduled to meet again as a groupuntil Oct. 25, in preparation fortheir decision the next day. Suchmeetings have sometimes pro-duced outcomes that haven’t beenclearly envisaged in advance.
An ECB spokesman declined tocomment.
The euro was little changed onthe day at $1.1830 at 10:08 a.m. inFrankfurt on Friday. German bundyields fell the most in almost threeweeks as government bonds roseacross the euro area.
The institution’s chief economist,Peter Praet, has hinted on severaloccasions that he would prefer toallow QE to continue at a slowerpace for longer if markets staycalm, arguing that a substantialamount of aid is still needed to spurinflation toward the ECB’s goal ofrunning inflation just below 2%.
S&P COMP. INDEX Dec 17 PRICE MO %F=94.3 %S=94.6 CLOSE 2551.00OPEN INTEREST 54114CME
MINI DOW JONES Dec 17 PRICE MO %F=95.8 %S=95.7 CLOSE 228.24OPEN INTEREST 155615CBOT
10 YEAR TREASURY Dec 17 PRICE MO %F=48.8 %S=43.8 CLOSE 125-22OPEN INTEREST 3136968CBOT
BRITISH POUND Dec 17 PRICE MO %F=38.6 %S=31 CLOSE 1.3317OPEN INTEREST 178580IMM
JAPANESE YEN Dec 17 PRICE MO %F=56 %S=41.7 CLOSE 0.8962OPEN INTEREST 248399 in 100thIMM
EURO Dec 17 PRICE MO %F=51.4 %S=37.3 CLOSE 1.1858OPEN INTEREST 437215CME
MINI NASDAQ 100 Dec 17 PRICE MO %F=97 %S=93.1 CLOSE 6074.00OPEN INTEREST 279910CME
US TREASURY BONDS Dec 17 PRICE MO %F=44.6 %S=27.8 CLOSE 154-00OPEN INTEREST 743894CBOT
US DOLLAR INDEX Dec 17 PRICE MO %F=50.4 %S=63.9 CLOSE 92.93OPEN INTEREST 42690ICE
MEXICAN PESO Dec 17 PRICE MO %F=5.3 %S=8 CLOSE 0.5210OPEN INTEREST 186147 in 10thIMM
SWISS FRANC Dec 17 PRICE MO %F=41.6 %S=33.5 CLOSE 1.0306OPEN INTEREST 51257IMM
EURODOLLARS Dec 17 PRICE MO %F=39 %S=27.2 CLOSE 98.50OPEN INTEREST 1826713IMM
COCOA Dec 17 PRICE MO %F=76.6 %S=75.1 CLOSE 2087.0OPEN INTEREST 110413ICE
GAS BLEND Dec 17 PRICE MO %F=42.7 %S=37.2 CLOSE 1.6008OPEN INTEREST 115087NYM
WHEAT Dec 17 PRICE MO %F=19.2 %S=20.8 CLOSE 4.39½OPEN INTEREST 256596CBOT
SOYBEAN OIL Dec 17 PRICE MO %F=47.6 %S=34.9 CLOSE 33.69OPEN INTEREST 173373CBOT
LUMBER Nov 17 PRICE MO %F=88.3 %S=86.3 CLOSE 424.30OPEN INTEREST 4187CME
CANADIAN DOLLAR Dec 17 PRICE MO %F=35.5 %S=26.6 CLOSE 0.8016OPEN INTEREST 171887IMM
ORANGE JUICE Nov 17 PRICE MO %F=68.3 %S=79.1 CLOSE 151.60OPEN INTEREST 4094ICE
COTTON 2 Dec 17 PRICE MO %F=42 %S=41.2 CLOSE 68.62OPEN INTEREST 125532ICE
SOYBEAN MEAL Dec 17 PRICE MO %F=75.9 %S=67.2 CLOSE 328.60OPEN INTEREST 152082CBOT
PLATINUM Jan 18 PRICE MO %F=68.1 %S=45.9 CLOSE 947.90OPEN INTEREST 70505NYM
NIKKEI 225 AVGS. Dec 17 PRICE MO %F=82.8 %S=85.9 CLOSE 21015OPEN INTEREST 38234CME
5 YEAR TREASURY Dec 17 PRICE MO %F=36.1 %S=23 CLOSE 117-18OPEN INTEREST 2969735CBOT
ECB Monthly Bond BuyingCould Be Smaller In 2018
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Money RatesPrime Rate: .................................. 4.00
Base interest rate charged by major U.S.commercial banks on loans to corpora-tions.
Discount Rate:Primary ................................................... 1.75
Secondary ............................................. 2.00
Rate charged by Federal Reserve Systemon loans to depository institutions
Broker Call Loan Rate: ................ 2.50Rate charged on short-term loans tobrokerage dealers backed by securities.
Federal Funds Effective Rate: ....... 1.16Rates on overnight loans amongfinancial institutions.
Certificates of Deposit:1 month ............................................. 0.NA3 months ........................................... 0.286 months ........................................... 0.45
1 year ................................................. 0.76Interest rate paid by dealers for certifi-cates of deposit based on the duration ofthe security.
Jumbo CDs:1 month ............................................. 0.163 months ........................................... 0.326 months ........................................... 0.491 year ................................................. 0.78
London Interbank Offered Rate:3 months ............................................ 1.366 months ............................................ 1.52
1 year ................................................. 1.81The average of rates paid on dollardeposits.
Treasury Bill Auction Results:3-months (as of Oct 10) ................. 1.0856-months (as of Oct 10) ................... 1.22
Average discount rate for Treasury billsin minimum units on $10,000.
Treasury Bill:1-year, (as of Oct 10) ....................... 1.35
Annualized rate on weekly average basis,yield adjusted for constant maturity.
INVESTOR'S BUSINESS DAILY FUTURES & BONDS WEEK OF OCTOBER 16, 2017 B17
