Regional Banks Get Crushed | Morning Express | 3/13/2023
Posted: March 13, 2023, 8:30 a.m.
- SIVB went into receivership on Friday and SBNY followed yesterday. The government bailed out depositors to reestablish confidence across banking sector, and specifically regional banks.
- The Federal Reserve established the Bank Term Funding Program (BFTP) to offer loans for pledged Treasuries, agency debt, MBS and other qualifying assets as collateral. These assets will be valued at par, allowing the banks to hold higher cash values on their balance sheets instead of deteriorated holdings.
- Despite Fed moves, regional banks are getting crushed as of early this morning, FRC and WAL each -60%.
- Weakness is running into Europe with CS making a new all-time low.
- U.S. 2-year yield nears 4%, it was trading at 5% Thursday morning.
- U.S. 10-year is below 3.5%, it was trading above 4% on Thursday morning.
- 2s10s spread traded to a low of -1.08% Wednesday and has rebounded above -0.60%.
- Nonfarm Payrolls on Friday was not hot, as wages were light, but job growth remains robust.
- 311k jobs versus 205k expected, though 105k were from Leisure and Hospitality. Could be a lot of second jobs.
- Wage Growth, +0.2% m/m versus +0.3% exp, and +4.6% y/y versus +4.7% exp.
- The Unemployment Rate went to 3.6% from 3.4%.
- Here comes CPI tomorrow!
E-mini S&P (March) / E-mini NQ (March)
S&P, yesterday’s close: Settled at 3862.75, down 57.25 on Friday and 187.00 on the week
NQ, yesterday’s close: Settled at 11,840.25, down 167.00 on Friday and 471.00 on the week
We will use June beginning tomorrow.
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NQ (March)
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Crude Oil (April)
Yesterday’s close: Settled at 76.68, up 0.96 on Friday and down 3.00 on the week
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Gold (April) / Silver (May)
Gold, yesterday’s close: Settled at 1867.2, up 32.6 on Friday and 12.6 on the week
Silver, yesterday’s close: Settled at 20.506, up 0.341 on Friday and down 0.732 on the week
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Silver (May)
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