LIVE ECON DATA NEWS & ANALYSIS

MARKET ANALYSIS:

UPDATE:

* THE DOLLAR IS GETTING WHACKED AROUND AFTER BRIEFLY TURNING BID. MARKET RUMORS SUGGEST SELLING BY THE RBI HAS TRIPPED SEVERAL TECHNICAL LEVELS AND THAT IS THE REASON FOR THE EUROPEAN AWKWARD SESSION

* FIXED INC0ME HAS NOTCHED HIGHER WITH LIKELY PROFIT TAKING AND POSITION CONSOLIDATION AHEAD OF TOMORROW'S FOMC MINUTES

* EQUITIES CONTINUE THEIR LOSING STREAK AS FED TAPER OR WHAT WE COINED SEPTTAPER RULES PRICE ACTION

* BOJ'S KURODA TRIES SINGLE HANDEDLY TO DEVALUE THE JPY

Key Points For Today's Trading:

• Markets were quiet yesterday but kept the Taper theme on going with Fixed Income moving lower in step with equity markets.
• Bunds hit a yield of 2.90%
• Bundesbank makes anti forward guidance comments (See article below)
• Geopolitical Risks are still present but the markets are waiting for the next move one way or another. Track WTI price action for confirmation
• India financial markets continue in turmoil as most EM awaits the inevitable SepTaper
• Asia volatility weighs on markets
• Relatively quiet day for Econ data as well

LIVE ECON DATA:

Real Time Economic Calendar provided by Investing.com

SPEAKERS & AUCTIONS:

New 6y Gilt Linker //

SUMMARY:

Another relatively quiet day on the docket for Econ Data and Speakers. A couple of quick points (1) yesterday was a quiet as well and the Fed Taper theme continued throughout the day so no reason to think that will not be in play today (2) Germany's PPI on tap - markets could be sensitive to a higher reading given the Bundesbank's comments yesterday (3) U.S data highlight is Chicago Fed. (4) Watch out for a strong linker auction as that may put some real heat on Fixed Income

GLOBAL MACRO THEMES:

FED Tapering in Sept / Debt Ceiling / Student Loans and Muni's Defaults / Eurozone Dysfunctionality / China Slowdown / Japan's Money Printers / UK Improving on higher inflation and falling wages / EM Slowdown in Full Swing

HEADLINES:

Summary: IMPORTANT! Very thematic headline news this AM. Markets are imploding ahead of what we call SeptTaper. No reason to assume this trend won't persist unless CB's start taking to the wires soon.

Today's Trading News:

Rupiah Forwards Plunge to Lowest Since 2009 as Bond Risk Surges - Bloomberg

Indonesia Stocks Drop as Index Falls as Much as 20% From Peak. - Bloomberg

China Money-Market Rate Climbs to 2-Week High on Policy Concern.

Asian Stocks to Aussie Bonds Drop as Ringgit, Baht Slide - Bloomberg

Fear of Fed Retreat Roils India. WSJ

Spiking interest rates rattle the market's cage. CNBC

What Every Fed Head Will Be Looking At For The Next Month. - Zerohedge

No More ECB Rate Cuts - Economic Times

Rates are on the Rise and what that will means to Markets - CNN

Global Macro News:

It Looks Like 1998 Again in China by William Pesek. - Bloomberg

Thai Baht Slumps to One-Year Low as Economy Enters Recession - Bloomberg

Tombini Says Brazil Traders Pushed Market Interest Rates Too Far - Bloomberg

Europe's Next Crisis? Migrant Flows Are Surging. - Zerohedge

What Is Going To Happen If Interest Rates Continue To Rise Rapidly? - Zerohedge