Citi sees lower yields, dollar pressure after Summers news


Citi is out with some commentary on what the market reaction will likely be to Larry Summers' withdrawal from what many thought was a two-horse race for the Fed chairmanship.

Steven Englander of course sees "downward pressure on bond yields" and is willing to put a number on it: "[This] may be worth another 10-15 bps on the downside."

As for the dollar, Englander says it's "hard to see it as anything but negative for now."

Is a Yellen-run Fed a foregone conclusion? Maybe not: "This throws the field wide open between Janet Yellen, Donald Kohn, Roger Ferguson among others."

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Comments (4)
  • SharkDude
    , contributor
    Comments (778) | Send Message
     
    That is absolutely ridiculous. First of all he never would have been confirmed. Money management industry should be embarrassed by this reaction.
    15 Sep 2013, 06:26 PM Reply Like
  • SharkDude
    , contributor
    Comments (778) | Send Message
     
    yeah. buy yen. buy reits. buy chipotle. buy neflix and tsla all on Larry Summers withdrawing. My gosh. What is wrong with these markets? Futures moving 1% on Larry Summers?
    15 Sep 2013, 08:53 PM Reply Like
  • BTM
    , contributor
    Comments (512) | Send Message
     
    I wonder if mREITS rally on the news.
    15 Sep 2013, 06:42 PM Reply Like
  • ebeuu
    , contributor
    Comments (382) | Send Message
     
    Last month I purchased floating rate high yields; it's hard to know when is high tide.
    15 Sep 2013, 07:49 PM Reply Like
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