"Central Banks Now Own $25 Trillion Of Financial Assets"

With 85% of Wall Street telling Citi they expect a "dovish hike signal" from Yellen tomorrow, which means a polite request for another BTFD opportunity, even if as BofA says "expectations for a dovish Fed are coinciding with macro strength in the US (most obviously in housing & consumer spending) as well as highest level of wage inflation since Jan’10"...

... here is a quick reminder of where we currently stand from BofA's Michael Hartnett, from a brief note titled The Liquidity Supernova & the "Keynesian Put."

* * *

Risk assets are now supported by the new ”Keynesian Put”, the expectation that fiscal measures will be deployed to combat any renewed weakness in the economy/markets (independently of any larger political projects). But asset prices remain primarily supported by excess monetary abundance across the world:

1. There have been 667 interest rate cuts by global central banks since Lehman;
2. G7 central bank governors Yellen, Kuroda, Draghi, Carney & Poloz have been in their current posts for a collective 17 years, yet only one (Yellen in Dec’15) has actually hiked interest rates during this time;
3. Central banks own $25tn of financial assets (a sum larger than GDP of US + Japan, and up $12tn since Lehman);
4. There are currently $12.3tn of negative yielding global bonds (28% of total);
5. There is currently $8tn of negative yielding sovereign debt (54% of total).

Do not expect any unwind of this $25 trillion in risk asset support to be unwound any time soon, or perhaps ever, or else...

The Crab Nebula supernova

http://www.zerohedge.com/news/2016-08-25/central-banks-now-own-25-trillion-financial-assets

YOUR POCKET GUIDE TO BE A FOREX GENIUS - SPLITTING PENNIES

Central Banks coordinated move - lower USD Swap lines by 50 bp

http://economictimes.indiatimes.com/markets/global-markets/asian-shares-gain-on-central-banks-liquidity-move/articleshow/10939125.cms

TOKYO: Asian shares extended gains on Thursday after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding. 

MSCI's broadest index of Asia Pacific shares outside Japan jumped 1.3 percent, after U.S. stocks rallied 4 percent and European equities rose 2 percent on Wednesday. Japan's Nikkei opened up 1.7 percent on Thursday. 

The U.S. Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan and Switzerland said on Wednesday they would lower the cost of existing dollar swap lines by 50 basis points from Dec. 5, and arrange bilateral swaps to provide liquidity for other currencies. 

A move by China on Wednesday to cut the percentage of cash banks must keep as reserves also boosted sentiment. 

The central banks' move aims to thaw severe funding strains for European banks as lenders had been extremely reluctant due to concerns over the eurozone's ability to quickly resolve its debt crisis, and could warm investor stance towards risk.