A piece in Bloomberg relates that Morgan Stanley says its clients began discussing the possibility the Fed resume bond purchases -- or cut interest rates to below zero -- after the NFP last week.
"Almost immediately after September nonfarm payrolls figures flashed on the screen, the phones started ringing," Matthew Hornbach, Morgan Stanley's head of global interest rate strategy in New York, wrote in a report Oct. 6. "What's more likely: QE4 or negative rates?"
Yeah, right.
But, MS go on (redeeming themselves with a much more reasonable point :-D )
"Apart from it being too early to talk about either, both QE4 and negative rates have one thing in common," he wrote. "They both mean that liftoff will be pushed back considerably."
