Overseas Headlines – August 5, 2020

United States:

U.S. Treasury Plans a Record $112 Billion Quarterly Debt Sale

“The U.S. Treasury expanded its plans for the issuance of longer-term debt in coming months, after depending mainly on shorter-dated bills to fund the federal government’s record spending surge to address the Covid-19 crisis. The department on Wednesday said it will issue a record $112 billion of securities at next week’s so-called quarterly refunding of maturing Treasuries. Over the three months through October, it will ramp up “nominal coupon issuance” by a total of $132 billion compared with the previous quarter.”



BOE Seen Signaling More Stimulus to Come: Decision Day Guide

“Bank of England officials could signal on Thursday that the case for more monetary stimulus is growing as a nascent rebound from the pandemic-induced recession risks fading. While all analysts surveyed expect interest rates and the bond-buying target to be kept on hold for now, Bank of America Global Research, Goldman Sachs Group Inc. and Bloomberg Economics are among those predicting Governor Andrew Bailey will need to act again after the summer.”



India Rate Cut Is Too Close to Call on CPI Risks: Decision Guide

“The Reserve Bank of India’s policy decision this week is a tricky one to call, with economists split over whether Governor Shaktikanta Das will lower interest rates again to support a fragile economy and banking sector in the face of above-target inflation. Of the 44 economists surveyed by Bloomberg, 22 expect a 25 basis-point rate cut on Thursday, one projects a 50-point move and the rest see no change. Das has already led the Monetary Policy Committee in cutting interest rates by 115 basis points this year, taking the repurchase rate down to 4%, the lowest since it was introduced in 2000.​”




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