Fed lifts veil on primary dealer survey
NEW YORK (Reuters) – The Federal Reserve Bank of New York took another step in its campaign to become more transparent on Friday, announcing it will publish one of the regular queries it puts to market participants.
The New York Fed said it would begin publishing on its website the regular survey it distributes to a selection of bond dealers before every Federal Open Market Committee meeting.
U.S. Treasury prices rise after big Fed buyback
NEW YORK, Dec 2 (Reuters) – U.S. Treasury prices rose on
Friday after the Federal Reserve completed a larger than
expected purchase of Treasury bonds and as investors took
defensive positions on fears of more bad news from Europe.
The Fed bought roughly $5.1 billion in 30-year U.S.
Treasuries. That was more than primary dealers, the banks and
securities firms authorized to deal directly with the Fed, were
anticipating.
Prices fall on new ECB loan to IMF talk
NEW YORK, Dec 2 (Reuters) – U.S. Treasury prices fell on
Friday ahead of the Labor Department’s November non-farm
payrolls report, as stock futures rose amid talk of a
potential fix for the European financial crisis.
Talk circulating in the markets suggested that the European
Central Bank might lend the International Monetary Fund money
to help shore up the euro zone.
Insight: Governors go where national politicians won’t, China
(Reuters) – In October 1984, Iowa’s governor, Terry Branstad, made his first trip to China. He and his wife flew to Beijing and took an old steamer train about 200 miles southwest to Shijiazhuang, a city in the Hebei province.
“It was kind of like going back in time,” Branstad told Reuters.
Local government officials greeted the Branstads with flowers and a band. One member of the welcoming committee was a young man who would eventually ascend to the ranks of China’s top leadership, Xi Jinping. Currently China’s vice president, Xi is widely expected to succeed President Hu Jintao, who is set to step down next year.
U.S. governors dare to go where national pols won’t: China
Nov 23 (Reuters) – In October 1984, Iowa’s governor,
Terry Branstad, made his first trip to China. He and his wife
flew to Beijing and took an old steamer train about 200 miles
southwest to Shijiazhuang, a city in the Hebei province.
“It was kind of like going back in time,” Branstad told
Reuters.
Local government officials greeted the Branstads with
flowers and a band. One member of the welcoming committee was a
young man who would eventually ascend to the ranks of China’s
top leadership, Xi Jinping. Currently China’s vice president, Xi
is widely expected to succeed President Hu Jintao, who is set to
step down next year.
NY Fed’s new rule on MBS trades seen as protective
NEW YORK, Nov 16 (Reuters) – Traders are looking at the
Federal Reserve Bank of New York’s new margin requirements for
mortgage-backed securities trades as one method of protection
against events similar to MF Global’s failure two weeks ago.
The step could be a move by the New York Fed to shed some
vulnerability in the wake of MF Global’s demise,
since the broker-dealer had primary dealer status and was
engaged in trades with the New York Fed when it declared
bankruptcy.
NY Fed says not mulling new primary dealer rules
NEW YORK, Nov 10 (Reuters) – Despite questions it has faced
in the wake of MF Global’s failure, the Federal Reserve Bank of
New York doesn’t have any plans to change its standards for
primary dealers, a spokesman for the bank said on Thursday.
“While the New York Fed regularly reviews its policies and
practices, we are not currently considering raising capital
requirements for primary dealers,” the spokesman said in a
statement to Reuters.
New problems in Italy drive U.S. debt prices higher
NEW YORK (Reuters) – U.S. Treasury debt prices rose on Wednesday as the quickly evolving debt crisis in the euro zone drove investors back into the safety of U.S. bonds, despite their extremely low yields.
Italy looked to be the next country tumbling into fiscal chaos like that seen in Greece after investors lost confidence in Greek bonds, and European leaders, central bankers and the International Monetary Fund had to take steps to intervene.
US funding market stays stable as MF Global exits
NEW YORK, Nov 1 (Reuters) – Investors fleeing renewed
troubles in Europe had one source of comfort: Short-term
markets, chiefly the U.S. repo market, remained calm as one of
the biggest repo traders, MF Global, collapsed this week.
MF Global’s repo operation was large. The securities
firm’s failure pushed repo settlement times back by several
hours on Friday and Monday. But on Tuesday, things were back
to normal.
MF Global casts doubt on NY Fed primary dealer plan
NEW YORK, Oct 31 (Reuters) – Perhaps Wall Street will
finally listen to the New York Fed’s regular warnings about
primary dealers: Just because they are approved to work
directly with the government, that doesn’t make them safe.
MF Global Holdings Ltd (MF.N: Quote, Profile, Research), just nine months after
ascending to the list of primary dealers who transact business
directly with the Fed, filed for Chapter 11 bankruptcy on
Monday. For more, see: [ID:nN1E79U0V8]

