Monday, July 30, 2012

John Taylor Interview, July 27, 2012

John Taylor, CEO of FX Concepts LLC is interviewed by Bloomberg's Sara Eisen on July 27,2012 and describes his opinions around the current level of GDP in the US, actions out of the FOMC meeting this week and the ECB meeting this Thursday, his outlook for the Euro, US$ the Yen and the Aussie $. This is a compelling interview in which he admits to being stretched emotionally to the point of wanting to pull his hair out. He contends that emerging market currencies are what he is looking to for a signal of sustainable risk-on sentiment.

Market Data & Graphs: Week Ending July 27, 2012


Market Index 12/30/   2011 7/27/     2012 Week Change Simple YTD %
Dow Industrials Avg 12,217.56 13,075.66 1.94% 7.02%
S&P 500 1,257.60 1,385.97 1.68% 10.21%
Fed Funds Rate 0.04% 0.16% 0.02% 300.00%
10 yr T-note Yld 1.88% 1.54% 0.10% -18.09%
5 yr T-note Yld 0.83% 0.64% 0.08% -22.89%
5 yr TIPS - 'Real' Yld -0.89% -1.19% 0.06% -33.71%
Implied 5 yr Inflation % 1.72% 1.83% 0.02% 6.40%
2 yr T-note Yld 0.24% 0.24% 0.04% 0.00%
2-10 Yr Slope 1.64% 1.30% 0.06% -20.73%
90 day T-bill Yld 0.01% 0.10% 0.02% 900.00%
Gold ($/oz) $1,566.80 $1,622.70 $39.90 3.57%
WTI Oil ($/brl) $98.83 $90.13 -$1.80 -8.80%
VIX "Worry Index" 23.4 16.7 0.43 -28.63%





Credit Spreads 12/30/   2011 7/27/     2012 Week Change Simple YTD %
Inv Grade Credit Idx 4.63% 3.48% 0.03% -24.84%
Mid Grade Credit Idx 8.86% 7.29% -0.02% -17.72%
Markit CDX Inv Grd Idx 120 111 2.78% -7.50%
Markit CDX Mid Grd Idx 247 211 2.43% -14.57%
Mid Grade to 10 yr T-Note Spread 698 575 -2.04% -17.62%