"The Fed does not hedge: QE4 is running at a monthly pace of $110bn gross (and $40bn net); Fed purchases represent about 40% of total monthly gross supply and entirety of net supply; the Fed now owns over 30% of the agency MBS market and its share still grows incrementally each month as QE progresses; this massive scale is dampening duration and vol supply to the rest of the mortgage market" - JPM
MS brand-new WFH tracker shows 40% of the corporates under consideration have both 1) pushed return to work plans to 2021; and 2) adopted hybrid in-office / WFH models.
1) utilization remains in the 10-20% range - still very low relative to the ~60% utilization pre-COVID. As return to work timelines gets pushed out, this should limit a pick-up in leasing activity.
2) Corporates are increasingly open to adopting a hybrid / agile work environment.
3) A broad-cross section of corporates reveals wide-spread plans to reduce office footprints or at least reassess future needs. A handful, however, have revealed plans to increase their office footprint (AMZN, GOOGL, MA).
EU MOMO was the worst performing thematic basket in Europe today, down -1.75%. The pull back was mainly driven by the short leg of the basket which rose+3.72%(it’s biggest one day move since 11thAug) compared to the long leg which is up +1.59%.