The Daily Shot Brief – March 1st, 2021

Greetings,   United States: Personal incomes rose sharply in January, boosted by one-time government checks and elevated unemployment payments (2 charts). The savings rate jumped.   Eurozone: Will the ECB allow yield curve steepening that occurred in the US?   Emerging Markets: Higher soybean prices should help Argentina’s recovery.   Cryptocurrencies: Robinhood now has millions …

The Daily Shot Brief – February 26th, 2021

Greetings,   Rates: With longer-term rates rising, mortgage refinancing is expected to slow down, extending the duration of MBS securities. Holders of MBS (who are short convexity) found themselves increasingly long duration and were forced to hedge their exposure (often happens when rates rise suddenly). The hedging processes, which is usually done via rate swaps, …

The Daily Shot Brief – February 25th, 2021

Greetings,   United States: As Treasury yields climb, a rise in the 30-year mortgage rate could weigh on housing activity. Loan applications to purchase a home declined last week.   Eurozone: Economic expectations are rebounding, which could benefit EUR/USD.   Commodities: Industrial metals keep climbing. Here’s US copper (highest since 2011): Steel futures in China: …