What propel Tbonds to new more yields lower

In the face of adversity and bad news to repetition, markets have made Act of rebellion and resistance. The scholarship in Paris, London and Frankfurt were closed on respective gains of 0.72, 0.91 and 0.22. They have experienced a slight relief after the announcement of a stronger drop than anticipated new weekly registration at the unemployment in the United States. After touching a high point during the second week of August, 473.000 new applications for allowances were recorded from 15 to 21 August, is less that the consensus, which partly on 490.000 requests. Markets have certainly appreciated this figure, but without to overestimate its importance, it is based on a very short period.

The decline in Wall Street yesterday in closure, reflected a degree of deference and the excitement of investors. And for cause, without sustained and strong growth, the US economy will prove to be unable to create lasting jobs. However the consensus expects growth of us GDP, announced today, 1.4 on an annual basis, well below the level necessary to begin to ease unemployment. Nouriel Roubini, the famous American economist who predicted the crisis, expects a figure of less than 1.2 and 1 clearly in the third quarter. What propel T-bonds to new more yields lower. Yesterday, of the title in 10 years remained stable, at 2.53, in the morning.

Major US newspapers are echoed recently, with detail of animated and contradictory debate at the last meeting of the Federal Reserve (Fed) American. Scarce, they showed that differences between its members were much more pronounced and numerous as the picture of unity given by the final release of the monetary authorities. Thus, 7 members of the monetary policy Committee, most voters, 17 have expressed their disagreement or reservations with respect to a new use of the quantitative easing, according to the "Wall Street Journal".

The action by the Fed to this communication channel (the press), to an unprecedented level, perhaps explained by Barclays Capital economists, by "the very limited time a day, Editor's note the monetary authorities have had to take a decision on a controversial and sensitive subject, in a very uncertain context.". "They were able to estimate the simple and laconic published release after had failed to deliver to market all the nuances and information contained in all of the debates." In other words, the Fed felt the need to be much more explicit and transparent well before the publication of the official record of its meeting, next Tuesday.

A look at Jackson Hole

Further evidence of the novelty of the current situation and the dilemma facing the American Central Bank. Real estate is, him, already entered into the famous double-dip recession ("double dip"). Now question is if the US economy will also follow this dangerous path. A ground of debate and concern for Jackson Hole symposium, which begins today (see page 5). Held annually since 1978 and under the auspices of the Kansas City Federal Reserve, this symposium brings together the fine flower of economists and central bankers. Goal Refer and discuss the international economic situation and the challenges it will face in the coming decade. They are not today, and operators now thus on this occasion the statements of each and of others, with perhaps the announcement of joint initiatives for greater efficiency and impact on markets. Only, this symposium is rarely Theatre of high-sounding declarations. The current situation will perhaps encourage central bankers to more daring. August 21, 2009, during the previous meeting, Ben Bernanke, Fed Governor, had ended his speech in the hope that, one year later, he and his colleagues would meet to see "substantial progress to ensure sustained economic growth and create a new financial framework that better prevent crises." No risk, on these two points, to pay today complacency... The resurgence of turbulence on the currency will not fail to facilitate the conversations, as the most effective remedies to end. Yesterday, the foreign exchange markets were rather calm pending possible ads. Even the Japanese currency appeared to temporarily chastened, to the satisfaction of the Bank of the Japan no doubt. The dollar ended up 0.19, to 84,67 yen.