2. August 2012 06:10
Yields are down on a series of “stand-pat’ decisions by central banks. An anticipated move by the European Central Bank didn’t come. It is leaving its benchmark interest rate unchanged, at 0.75%. It did announce it will be drawing up a bond-buying plan in the next few weeks. The markets seem to hear the comments as coming up short on the bank president’s earlier commitment to do everything necessary to maintain the eurozone.
The Bank of England is also standing pat, holding its benchmark rate at 0.5%, with no further stimulus for the time being. The BoE injected some 50 billion pounds into quantitative easing in July, and says it is waiting to see how that works out.
And, yesterday, the U.S. Federal Reserve decided to stay the course with it current economic policy.
U.S. initial jobless claims for the week are up by 8,000 which is less than forecast. The four-week rolling average is down by more than 2,700.