ECB’s Balance Sheet Plunges by €492 billion in One Week and by €850 Billion from Peak by Wolf Richter • Dec 28, 2022 • 86 Comments Monetary Rug-Pull? December dump in the markets anything to do with global QT?
Bank of Japan, Last Holdout of “Free Money,” Begins to Tighten: Raises Cap of 10-Year Yield Peg, Paves Way for NIRP Exit by Wolf Richter • Dec 20, 2022 • 65 Comments Yen and 10-year yield spiked. BOJ cited bond market dysfunction, didn’t mention elephants in room: raging inflation & yen’s plunge.
Stocks Open Eyes, See Fed Pivot Hawkish; ECB Hike into Recession, Start QT; BoE Hike into Recession; SNB Hike, Sell Foreign Currency Assets by Wolf Richter • Dec 15, 2022 • 149 Comments ECB’s assets drop by €800 billion. Mexico hiked too today, way ahead of the Fed, keeps peso from falling against USD.
The Swiss National Bank Began Unloading its Biggest US Stock Holdings, incl. Apple, Microsoft, Amazon, Alphabet, Meta by Wolf Richter • Nov 11, 2022 • 154 Comments It still bought Tesla though, which is down by 52%. It took massive losses. And it’s got a bunch of Imploded Stocks.
Bank of England Hikes 75 Basis Points, Most since 1989, to 3%. Hopes Raging Inflation Will “Fall Sharply” in mid-2023. If Not, “Will Respond Forcefully” by Wolf Richter • Nov 3, 2022 • 59 Comments But in Q4, inflation will shoot to 11%, the BOE said. Media reported it as a “dovish” monster rate hike. Whatever.
Bank of England Sold Bonds Outright Today to Speed up QT, Will Sell More at Regular Auctions: First Major Central Bank to Sell Bonds Outright by Wolf Richter • Nov 1, 2022 • 99 Comments It went fine. Gilt yields are way down from panic highs. Another dream of the “pivot” mongers goes to heck.
ECB Starts QT via Loans rather than Bonds, Hikes by 75 bpts, to 1.5%, More Hikes to Come by Wolf Richter • Oct 27, 2022 • 55 Comments To “address unexpected and extraordinary inflation increases,” the ECB starts QT by “recalibrating” TLTRO III, which will further reduce its balance sheet.
“No Easy Outs to Restoring Price Stability”: Bank of Canada Hikes by 50 bpts to 3.75%, More Hikes to Come, QT to Continue, as “Unsustainable” Home Prices Plunge, GDP “Stalls” by Wolf Richter • Oct 26, 2022 • 98 Comments “Not enough” v. “Too much.”
Return of the Bond Vigilantes Sent Shockwaves Around the Globe by Wolf Richter • Oct 18, 2022 • 104 Comments Deficits didn’t matter – until raging inflation brought the bond vigilantes back to life.
Shock & Awe Balance Sheet Reduction at the Bank of Japan: Assets Drop 7.3% from Peak by Wolf Richter • Oct 7, 2022 • 84 Comments Inflation spiking, yen getting beaten half to death, yield peg under attack, and Kuroda’s term won’t expire till April. Here’s what the BOJ did.
