Who Are These Guys ?

On the 5 Year

By Vincent Cignarella
(Bloomberg) -- If the Fed were going to raise rates, central-bank demand at today’s 5Y auction would have been minuscule, Hilltop Securities’ Mark Grant writes in email; instead, indirects, which include CBs, took down record 68.7%.
Central banks “speak to each other” and “there is a very large hint here”; “central banks would be in with both barrels” if the Fed isn’t planning to raise rates

AND from Jeffries' Tom Simons via Fidelity Fixed Income: 5 Year has ALL Hallmarks of a Liquidity Event

Really guys? This is what passes for FI commentary 8 years into the Upside Down? The auction was either A) CB signaling the all clear or B) a system seizure. LULZY, please try a little. I understand Mr. Cignarella not chuckling and telling the esteemed Mr Grant (great name for an FI guy ) of Hilltop Securities to go read a book...but what the heck is Fidelity Fixed Income streaming on Mr. Simons' crazed opinions for?

Here's my advice to both men, unsolicited, from a grape stomping semi-retired former practitioner - Show 1 cell of dignity and RESIGN NOW. Get out of the game. You're making stuff up. There's plenty of actual weirdness going on in global FI, you don't need to fabricate sound bites and conspiracy theories. It is kinda funny though.

 

One thought on “Who Are These Guys ?

  1. Michael Francis

    The implication that foreign central banks, a) have some sort of advantage over market on predicting rate hike vector, or b) Don’t involve FX forwards in their UST allocation, seems far fetched.

    Reply

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