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The Daily Capital Markets Digest
(Reuters) China’s central bank on Tuesday raised the interest rate on the medium-term lending facility as it rolled over maturing loans, triggering a fall in prices of benchmark bond futures.
(Reuters) Indonesia’s finance ministry, which recently cut its business ties with JPMorgan Chase & Co, announced new rules that require primary bond dealers to “safeguard” their partnership with the government and avoid conflicts of interest.
(Reuters) Indonesia is planning regulation to ensure primary bond dealers produce only “factual” research, senior government officials said, in a move that is likely to add to bankers’ concerns about a growing backlash over negative investment commentary.
(Reuters) Indonesia has barred JPMorgan Chase & Co from submitting an underwriting proposal for its next issuance of dollar-denominated Islamic bonds, a finance ministry official said on Monday.
Although politics and economics are clearly still at war with each other, it looks as though economics might have gained the upper hand, at least for a brief period.
Wednesday’s FOMC meeting sort of came and went. Not much had been expected and once the fog of war cleared and one had cut through the white noise from analysts desperate to fill their media slots, Madame Yellen told us what we should have expected, that there are too many moving parts for the Fed to contemplate saying anything meaningful or doing anything drastic.
The recent optimism, whether expressed in equities by the Trump Jump or in bonds by the Trump Dump seem to have somehow rather run out of steam. Sceptics might suggest that the new president himself has wiped the lipstick off the pig.
If markets hate uncertainty, how do they deal with the there being absolute certainty that the uncertainty is going to continue, with the predictability of unpredictability?
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