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Keyword: bondmarket

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  • US stocks to keep eye on rising bond yields

    06/10/2015 8:23:35 AM PDT · by Citizen Zed · 1 replies
    cnbc ^ | 6-10-2015 | Dhara Ranasinghe
    Trade in U.S. stock futures pointed to a slightly higher open for Wall Street shares on Wednesday, as focus once again turned to rising yields in government bond markets. The yield on the benchmark 10-year Treasury climbed to a new eight-month peak of around 2.47 percent in the European session, pulled higher as the German Bund yield pushed above the 1-percent psychological barrier. In morning London trade, stock futures for the Dow Jones industrial average, S&P 500 and Nasdaq all traded in positive territory. There is no significant economic data due this session.Total weekly mortgage application volume jumped 8.4 percent...
  • The Gathering Bond Storm in Chicago

    05/19/2015 11:00:58 AM PDT · by SeekAndFind · 15 replies
    Economy and Markets ^ | 05/19/2015 | Rodney Johnson
    Recently the bond rating company Moody’s Investor Service cut their ranking of Chicago to junk status. The move ticked off a lot of people in the Windy City who think Moody’s overstated the case. I agree that Moody’s is wrong… not because they went too far, but because they didn’t go far enough. Chicago is not close to bankrupt. It’s completely bankrupt. People are just afraid to say this out loud. The city’s pensions are underfunded by $20 billion. Moody’s gave a rating that reflects how the city is performing. City officials are just angry Moody’s called them out. The...
  • US Treasury to sell US$64 billion in notes, bonds next week

    02/04/2015 7:24:27 AM PST · by Citizen Zed · 10 replies
    Business Times ^ | 2-4-2015
    Complicating the debt-management outlook is possible political wrangling over the debt ceiling after its suspension ends in mid-March. That will require the Treasury to use so- called extraordinary measures to avoid going over the limit until Congress raises it. The department today said it will give clarity at a later date on how long it can go after March 15 before the limit is breached. "Extraordinary measures will allow the government to continue to meet its obligations for a period of time after March 15," Seth Carpenter, acting assistant secretary for financial markets, said in a statement today. "That said,...
  • "World Running Out of Positive-Yield Bonds"

    01/24/2015 8:58:19 AM PST · by Kaslin · 9 replies
    Townhall.com ^ | January 24, 2015 | Mike Shedlock
    In the wake of ECB's €60 billion a month QE madness (see "QE already Working" Says IMF Lagarde; Ho-Hum Details Announced; Gold the Place to Be), one might be wondering what it may do to European bond yields. German 10-Year Bond Yield image: http://3.bp.blogspot.com/-of_KecAryfU/VMKLTNvRyfI/AAAAAAAAcFk/6Kswiqag_hg/s400/German%2B10-Year%2Bbond%2Byield.png click on chart for sharper image Since September of 2013, yield on the German 10-year bond has plunged from around 2% to 0.367%. ECB Risks German Bonds Mismatch Exceeding 100 Billion Euros With €720 billion annual asset purchases, a huge portion of the bonds the ECB buys will be German. Bloomberg explains ECB Risks German Bonds...
  • Rickards: Brace For Financial Storm 6x Larger Than 2008

    01/21/2015 12:09:48 PM PST · by alexmark1917 · 38 replies
    Over the coming months, I believe we could see an economic meltdown at least six times the size of the 2007 subprime mortgage meltdown... The next financial collapse, already on our radar screen, will not come from hedge funds or home mortgages. It will come from junk bonds, especially energy-related and emerging-market corporate debt. The Financial Times recently estimated that the total amount of energy-related corporate debt issued from 2009-2014 for exploration and development is over $5 trillion. Meanwhile, the Bank for International Settlements recently estimated that the total amount of emerging-market dollar-denominated corporate debt is over $9 trillion. Energy-sector...
  • Warning: Bond rates are going negative

    01/15/2015 6:38:42 PM PST · by MeneMeneTekelUpharsin · 57 replies
    CNN Money ^ | 15 January 2015 | Matt Egan
    Investors are so nervous that they are basically willing to lose money when they buy some government bonds. It's part of the latest fad in finance that's all the rage: "going negative." The yields on government bonds in Europe and Japan have dipped into the uncharted waters of negative territory. That means buyers of those bonds are essentially taking a loss just to hold onto those assets. They think their money is better off losing a few cents than putting it elsewhere. "It's basically a fee for fear," said Nicholas Colas, chief market strategist at ConvergEx. "Fear of deflation, fear...
  • 10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW

    01/08/2015 2:11:17 PM PST · by SeekAndFind · 26 replies
    TEC ^ | 01/06/2015 | Michael Snyder
    If you do not believe that we are heading directly toward another major financial crisis, you need to read this article. So many of the exact same patterns that preceded the great financial collapse of 2008 are happening again right before our very eyes. History literally appears to be repeating, but most Americans seem absolutely oblivious to what is going on. The mainstream media and our politicians are promising them that everything is going to be okay somehow, and that seems to be good enough for most people. But the signs that another massive financial crisis is on the horizon...
  • It's Like We're In The Panic Phase Of A Financial Crisis

    01/06/2015 5:41:10 AM PST · by blam · 23 replies
    BI ^ | 1-6-2015 | Sam Ro
    Sam Ro January 6, 2015Over the past few days, we've seen stocks plummet and oil prices crash. But the most interesting moves have been occurring in the global bond markets where government bond yields have been plunging to historic lows. "2015 starts off with the average of G3 10 year government yields below 1%," wrote Steven Englander, Citi's global head of G10 FX Strategy. The G3 currency group consists of the US dollar, the euro, and the yen. On Tuesday, the US 10-year yield got as low as 1.959% and Japan's 10-year yield fell to as low as 0.288%. In...
  • Capital Flees China - Bitcoin, Hong Kong Dollar, ATM

    08/14/2014 1:36:40 PM PDT · by Kaslin · 5 replies
    Townhall.com ^ | August 14, 2014 | Mike Shedlock
    In response to New Yuan Loans and Shadow Banking Collapse in China; Record Bank Deposit Slump reader "CF" from Hong Kong who works in China explains how he is pulling every cent he can out of renminbi (yuan) , converting instead to Hong Kong dollars. From "CF" regarding his personal "capital flight" experiences ... Hey Mish, I am a reader from Hong Kong who works and lives in China and earns RMB. I never doubted a collapse in Chinese shadow banking would happen. I have been constantly converting my RMB into HKD. Before, I would just take 20,000 RMB (max...
  • Watch out for the corporate debt bomb

    08/14/2014 9:12:25 AM PDT · by AngelesCrestHighway · 20 replies
    Market Watch ^ | 08/04/2014 | Brent Arends
    It’s not just the stock market we have to worry about. It’s also the bond market. For the past five years, U.S. corporations have been living in a financial paradise. Interest rates have been on the floor. Wages have been flat. Companies have been able to lay off workers and slash costs. Profits have skyrocketed to record levels. And they’ve spent almost nothing on new capital equipment, either. And what effect has this had? In 2007, at the peak of the last credit mania, U.S. nonfinancial corporations owed $7.2 trillion according to data compiled by the U.S. Federal Reserve. Today?...
  • China Appears Ready to Dump Its U.S. Treasury Bonds

    08/13/2014 2:31:29 AM PDT · by Sir Napsalot · 44 replies
    Breibart - Big Government ^ | 8-12-2014 | Chriss W. Street
    Although investors hang on every comment by Federal Reserve Chairwoman Janet Yellen to get insight on the direction of interest rates and what it means for the economy and asset prices, the real power to determine U.S. interest rates may be in the hands of China, according to Lombard Street Research. Facing an overvalued currency that is hurting corporate profits and slowing growth, China appears ready to dump its $1.3 trillion in U.S. Treasury bonds to drive U.S. interest rates up and strengthen the dollar... (snip) China tried to slow the fall of the dollar by increasing its holdings in...
  • The Fed Owns 31.89% Of The Bond Market: Up 0.3% In One Week

    08/30/2013 8:47:33 AM PDT · by SeekAndFind · 95 replies
    Zero Hedge ^ | 08/30/2013 | Tyler Durden
    We have beaten this topic to death so we won't say much more, suffice to say the chart below shows what is the key issue: too much monetization and it's game over for the reserve currency; too little and it's an uncontrolled market sell off, and with every passing week the margin for error gets less and less. Last week the Fed owned $1.663 trillion in ten year equivalents, or 31.59% of totalThis week the Fed owned $1.678 trillion in ten year equivalents, or 31.89% of total In other words, the Fed's holdings of the Treasury market, expressed though...
  • It's Simple: Adjust Your Expectations Or Die

    07/05/2013 11:54:32 AM PDT · by SatinDoll · 5 replies
    The Market-ticker ^ | July 5, 2013 | Karl Denninger
    There are a lot of hard-headed people out in the investment and banking world. Most of them are hard-headed because they have never known anything else. A few are a bit smarter -- they know that their business model is cooked if the underlying assumptions change and they're being intentionally dishonest in trying to grab the last few nickels in front of the steamroller, and to hell with you (their customer.) Then there are those who have it figured out and are attempting to find a way to adapt to what is going to happen. More than 30 years ago...
  • Has the Great Financial Crisis Finally Arrived?

    06/22/2013 9:29:41 PM PDT · by blam · 14 replies
    The Market Oracle ^ | 6-22-2013 | Graham Summers
    Has the Great Financial Crisis Finally Arrived? Stock-Markets / Credit Crisis 2013 June 23, 2013 - 05:33 AM GMT By: Graham Summers The technical damage from yesterday’s bloodbath was severe. Spain, which lead the “Europe is saved” party from the lows last year has just taken out its trendline. So much for the “crisis is over” proclamations. We’re heading back down in a big way. The S&P 500 has also taken out its trendline. QE Forever is dead and buried. What will hold the market up now? Copper is indicating that the entire post-2009 “recovery” is ending. We’re moving back...
  • BOFA: 'RISKS OF A BOND CRASH ARE HIGH'

    05/31/2013 11:17:25 AM PDT · by blam · 9 replies
    Business Insider ^ | 5-31-2013 | Sam Ro
    BOFA: 'RISKS OF A BOND CRASH ARE HIGH' Sam Ro May 31, 2013, 11:02 AM Bonds have been tumbling for most of the month, and most analysts have warned that it could get even uglier. In a note to clients yesterday titled "Bubble, Bubble, Toil & Trouble," Bank of America Merrill Lynch strategist Michael Hartnett warns that the "risks of a bond crash are high." More from his note (emphasis added): As we have argued in recent years, history shows that major breakouts in equity markets tend to coincide with major inflection points in bond yields (Chart). This is now...
  • Goldman Sachs: Keep Calm and Carry On Buying

    05/30/2013 1:22:58 PM PDT · by Night Hides Not · 7 replies
    CNBC ^ | 5/30/13 | Matt Clinch
    Global stocks may have been on a wild ride of late, but the world's biggest investment bank has told investors they should see rising U.S. Treasury yields as positive and should continue to buy equities.
  • The Treasury Bond Selloff Is 'For Real' And The Volume Is Gigantic

    05/29/2013 1:27:27 PM PDT · by blam · 13 replies
    Business Insider ^ | 5-29-2013 | Matthew Boesler
    The Treasury Bond Selloff Is 'For Real' And The Volume Is Gigantic Matthew Boesler May 29, 2013, 2:05 PMIt's been a crazy few weeks in the Treasury bond market. After a big rally that began in mid-March, amid the outbreak of the Cypriot financial crisis and fears over a slowdown in global growth, Treasuries have given up all of their gains, and bond yields are now rising to the highest levels in over a year. This morning, the yield on the 10-year U.S. Treasury hit a high of 2.23%. Naturally, there is a lot of debate over where yields go...
  • Short US Gov. Bonds ‘Right Now’: Jim Rogers

    02/07/2013 3:04:29 PM PST · by ExxonPatrolUs · 1 replies
    CNBC ^ | 2.7.2013
    With the Federal Reserve and now Bank of Japan printing massive amounts of money, billionaire investor Jim Rogers told CNBC's "Closing Bell," he is shorting U.S. government debt. "It's all artificial what's going on right now," Rogers said. "The Federal Reserve is printing money as fast as they can. The Bank of Japan said 'we're going to print unlimited money.'" He called the Fed's monetary stimulus "outrageous." All that money printing has Rogers bearish on U.S. Treasury debt. He said he's shorting government bonds and that if it's indeed the end of the 30-year bond bull market, those shorts will...
  • Investors Are Staging One Of The Biggest Moves Into Equities Of All Time

    01/11/2013 8:40:38 AM PST · by blam · 20 replies
    TBI ^ | 1-11-2013 | Matthew Boesler
    Investors Are Staging One Of The Biggest Moves Into Equities Of All Time Matthew BoeslerJan. 11, 2013, 5:54 AMIt's been a dazzling week for mutual funds and ETFs. $22.2 billion flowed into equity funds this week, marking the second-largest weekly inflow in history. Inflows into emerging market equity funds this week were the largest – at $7.4 billion – of all time. "A new year, memories of 2012 returns, zero rates, the “fiscal whiff’...whatever the reason investors capitulated into equities this week," writes BofA strategist Michael Hartnett. Other big winners were long-only mutual funds, which recorded $8.9 billion in inflows...
  • Congress: Doomed from the Beginning

    11/25/2011 10:55:28 AM PST · by Comrade Brother Abu Bubba · 5 replies
    The Motley Fool ^ | November 22, 2011 | Morgan Housel
    The reason any country needs to keep its deficits in check is that interest rates can rise if lenders question your ability to repay -- sometimes quickly and sharply, stifling the economy. But that's not happening in the slightest today. While total debt and annual deficits are at all-time highs, interest rates are at all-time lows, and demand at weekly bond auctions has never been higher. The day after America lost its AAA credit rating this summer was one of the best days for Treasuries in history. The bond market is sending an unmistakable message to Washington: Keep the deficits...
  • Market punishes U.S. Treasury bonds after poor auction

    08/11/2011 2:23:59 PM PDT · by Qbert · 18 replies
    Reuters ^ | Aug 11, 2011 | Reuters
    Aug 11 (Reuters) - The U.S. Treasury sold $16 billion worth of 30-year long bonds at a poorly received auction on Thursday, with investors showing the weakest overall demand in 2-1/2 years and foreigners largely steering clear. [Snip] Investors submitted bids worth 2.08 times the amount on offer, the lowest since February 2009. A measure of foreign demand -- the indirect bidder category -- accounted for just 12 percent of the sale, the lowest since February 2008.
  • China Attacks US'Debt Addiction'as America Loses AAACredit Rating[misplaced power exists]

    08/06/2011 9:42:35 AM PDT · by fight_truth_decay · 32 replies
    BBC ^ | 2:25PM BST 06 Aug 2011 | Richard Blackden, New York
    State news agency Xinhua said unless the US cut its "gigantic military expenditure and bloated welfare costs," another downgrade would be inevitable. But other countries, such as Australia, France and Japan, said they retained their faith in US bonds.
  • Fibonacci Fate Date for a Bear Bond Market?

    08/05/2011 1:42:29 PM PDT · by george76 · 31 replies
    CNBC ^ | 5 Aug 2011 | Rick Santelli
    One of the greatest technicians of all time was a man named W. D. Gann (1878-1955). He had tremendous success predicting market moves much in advance. Legend has it that he occasionally sent notes to The Wall Street Journal, which accurately predicted tops and bottoms in grain markets months ahead of time. There are two Gann principles that I have always respected. They are that historical prices alone aren’t predictive unless paired with time; and that the “birth dates” of contracts are of major significance. The birth date is the first day a contract, stock, or grain begins trading. And...
  • World's Largest Bond Fund Manager Heads For The Lifeboat. PIMCO abandons US Treasuries

    03/10/2011 6:52:19 AM PST · by SeekAndFind · 14 replies
    American Thinker ^ | 03/10/2011 | Tom Shuhadlonik
    Bill Gross manages the world's largest bond fund.  If you own bonds in your retirement, either through his PIMCO fund or some other branded variant, there is a good chance he manages some of your money.  Yesterday he announced he has abandoned the US bond market in his largest fund.  As of January 2009, his $237 billion Total Return Fund held zero government related debt. People expecting a stampede from the US bond market are going to be disappointed.  Bond holders are not a herd of animals who follow each other blindly.  Bond holders are a mass of individuals with...
  • Charlie Gasparino Rips Meredith Whitney, And Accuses Her Of Costing Taxpayer Millions

    01/18/2011 9:26:39 AM PST · by SeekAndFind · 11 replies
    Business Insider ^ | 01/18/2011 | Joe Weisenthal
    Meredith Whitney continues to take it from all sides! The latest attacker is Charlie Gasparino, who accuses her of causing a muni market panic that caused the recent sell-off, thus costing taxpayers millions. In a HuffPo column, he demands that Whitney release her gigantic report detailing why, exactly, she expects the market to crash this year. Of course, its her proprietary research, and it's her right to keep it for her paying clients, but it is interesting since last week on CNBC she said one of the reasons for doing this research was to illuminate the issue of municipal debt....
  • Municipal Bond Market Crash 2011: Will Dozens Of State And Local Governments Default On Their Debts?

    12/23/2010 3:45:02 PM PST · by SeekAndFind · 32 replies · 2+ views
    The Economic Collapse ^ | 12/22/2010 | Michael Snyder
    In the United States, it is not just the federal government that has a horrific debt problem.  Today, state and local governments across America are collectively deeper in debt than they ever have been before.  In fact, state and local government debt is now sitting at an all-time high of 22 percent of U.S. GDP.  Once upon a time, municipal bonds (used to fund such things as roads, sewer systems and government buildings) were viewed as incredibly safe investments.  They were considered to have virtually no risk.  But now all of that has changed.  Many analysts are now openly speaking...
  • Say goodbye to the bond bull market (Gov't. may start having trouble funding its debt in 2011)

    12/13/2010 7:02:06 AM PST · by SeekAndFind · 8 replies
    MSN Money ^ | 12/13/2010 | Bill Fleckenstein
    Just before Thanksgiving, I held a contest for readers of my website, fleckensteincapital.com (subscription required), challenging them to provide the best definition for the term "funding crisis," a potential problem I have worried about since early 2009 -- and a consequence of bailing out the financial system. I am becoming more convinced that the various elements of a funding crisis will be picking up the pace and intensity sooner, rather than later, and they may well be the most important factors to consider with regard to investment decisions in 2011. Before delving deeper into this topic, I would like to...
  • Rolling Blue State Bailout Ended in Tax Agreement

    12/07/2010 6:52:37 PM PST · by La Lydia · 6 replies
    Red State ^ | December 4, 2010 | Brian Darling
    One of the best things to come out of the White House and Capitol Hill tax deal is that the liberals are apoplectic that there is no extension of the so called ”Build America Bonds.” These bonds are a rolling-state-government bailout mechanism that subsidizes the interest rate of state-issued bonds. Essentially, these bonds put off the day of reckoning for the blue states that are in a terminal budget flat-spin. This is a rolling bailout and you, the taxpayer, are on the hook and pay part of the interest to keep afloat states that have made terrible budgeting decisions. This...
  • Can somebody explain today's 30 year bond movement - -3.3733 (905.10%)

    10/11/2010 1:23:06 PM PDT · by RushingWater · 20 replies
    finance.yahoo.com ^ | 10/11/2010 | Yahoo Finance
    Treasury Yield 30 Years (Chicago Options: ^TYX) Index Value: 0.3727 Trade Time: Oct 6 Change: Down 3.3733 (905.10%) Prev Close: 0.37 Open: 3.73 Day's Range: 0.3727 - 3.7490
  • Did The Credit Agencies Just Go Extinct? (Dodd-Frank in Action)

    07/21/2010 9:45:54 AM PDT · by mojito · 27 replies · 1+ views
    ZeroHedge ^ | 7/21/2010 | Tyler Durden
    The recently passed Donk (Dodd-Frank) Finreg abomination, which nobody has yet read is finally starting to disclose some of the interesting side effects of its harried passage. Such as that the rating agencies may have suddenly become extinct. As the WSJ's Anusha Shrivastava discloses: "The nation's three dominant credit-ratings providers have made an urgent new request of their clients: Please don't use our credit ratings." The Moodies of the world suddenly have good reason to not want their name appearing next to those three A letters (at least in Goldman CDO and bankrupt sovereign cases) out there: "The new law...
  • Mind the gap: why the bond markets are signalling a depression (Something momentous has happened)

    07/08/2010 7:06:40 AM PDT · by SeekAndFind · 13 replies
    Daily Telegraph ^ | 07/08/2010 | Jeremy Warner
    Virtually unnoticed, the yield on long dated pan-European sovereign debt has slipped below that on equities. So what, you might say; that's what happens when shares go down and bonds go up. But in fact this reversal in the traditional relationship between bonds and equities is an extraordinarily unusual event. It's happened only three times in the past 50 years. Alarmingly, all three of those occasions have been in the past decade. What are markets trying to tell us? There are two ways of looking at the phenomenon. Either it is an aberration, and therefore a buy signal for stock...
  • Ignore that Keynes behind the arras

    05/11/2010 7:11:05 AM PDT · by Palter · 6 replies · 318+ views
    Asia Times Online ^ | 11 May 2010 | Spengler
    This was supposed to have been the final triumph of John Maynard Keynes, the crisis in which governments actually did what he urged them to do during the Great Depression, the proof that an elite of puppeteers in control of monetary and fiscal policy could make the innumerable actors in economic life march wide-eyed toward recovery. Keynes' idea is simple; in fact, it is simple by construction, for it focuses on the very short term within a closed economy. If consumers won't spend, the government will spend for them; if businesses won't invest, the government will invest for them; and...
  • The Subprime Rhyme with U.S. Debt Debacle (Conditions in place for US Bond Market Collapse)

    05/06/2010 7:19:26 AM PDT · by SeekAndFind · 15 replies · 552+ views
    Real Clear Markets ^ | 05/05/2010 | Michael Pento
    The similarities between the subprime mortgage crisis and that of the coming collapse of the U.S. bond market are uncanny. In fact, Mark Twain may have had the U.S. debt market and the previous debt-fueled real estate crisis in mind when he said that "History does not repeat itself--but it does rhyme." The housing and credit crisis first became evident to most in 2007 with the distress in the subprime mortgage market. The foundation for the housing bubble was low interest rates, which were provided by the Fed, and passed along to consumers via commercial banks and the shadow banking...
  • An Open Letter To Greek Protesters

    05/05/2010 6:58:09 AM PDT · by Motherhood IS a career · 27 replies · 736+ views
    Morons, There is no money. There is no one else’s pocket left to pick. You can’t borrow anymore, you can’t print anymore, and you can’t steal anymore from anyone else. The people who will be paying the bill to keep you from reentering the 15th century are, unlike you, working very hard. They deserve better than you spoiled pampered children are giving them. You object to the bond market, but the bond market is just the voice of reality calling. It’s telling you that 2 plus 2 is still 4, no matter what your union bosses would have you believe....
  • Bond-Buyers Voting against Obamanomics

    04/19/2010 3:35:35 AM PDT · by Scanian · 3 replies · 542+ views
    The American Thinker ^ | April 19, 2010 | Jeffrey Folks
    It's getting harder to trust Washington's numbers. There was, for example, the not insignificant matter of fuzzy health care budgeting. How it was possible for the CBO to budget six years of health care spending based on ten years of revenues is still a puzzle to me. There was also the little matter of restoring a 22% cut in Medicare and Medicaid reimbursement for physicians, a problem solved by shifting the expense to a separate bill. Then there was the odd coincidence of the autumn Labor Department jobs numbers coming in above what private-sector economists estimated they would be just...
  • Sell-off in US Treasuries raises sovereign debt fears

    03/30/2010 10:07:28 AM PDT · by 444Flyer · 38 replies · 1,433+ views
    Telegraph.co.uk ^ | 3-28-10 | Ambrose Evans-Pritchard
    The yield on 10-year Treasuries – the benchmark price of global capital – surged 30 basis points in just two days last week to over 3.9pc, the highest level since the Lehman crisis. Alan Greenspan, ex-head of the US Federal Reserve, said the abrupt move may be "the canary in the coal mine", a warning to Washington that it can no longer borrow with impunity. He said there is a "huge overhang of federal debt, which we have never seen before". David Rosenberg at Gluskin Sheff said Treasury yields have ratcheted up 90 basis points since December in a "destabilising...
  • Why the Bond Auction Fizzled: Fears of a 'Fiscal Train Wreck'

    03/24/2010 3:45:26 PM PDT · by CutePuppy · 74 replies · 2,697+ views
    CNBC ^ | March 24, 2010 | Steve Liesman
    The results of today's Treasury auction were a shot across the bow of the government.And, according to David Zervos, head of fixed income strategy at Jeffries, may be an indication of just how skittish some investors are feeling about the fiscal soundness of the United States, in light of big government spending for health care and other costly programs.“It’s the health-care realization trade,” Zervos told CNBC, post-auction, from the firm’s trading floor. “We’re coming to grips with the fact that we have a Congress that’s ready to go, and spend.”Zervos, who worked at the Federal Reserve in Washington, DC last...
  • Failure of Bond Market Highly Positive for Gold and Silver (US bond market chokes from oversupply)

    07/30/2009 5:39:27 AM PDT · by SeekAndFind · 43 replies · 851+ views
    Seeking Alpha ^ | 7/29/2009 | Peter Cooper
    Analysts say the US will have to triple its bond issuance this year to meet the cost of federal bailout and stimulus packages, while in the UK the printing of money has sent 10-year gilt yields tumbling from 3.64 to 2.94 per cent. The Bank of England’s move to quantitative easing by buying government securities to boost the supply of money is being closely watched by the US as a route it may follow shortly. Now the lower yield on Bank of England bonds sounds like an initial success, as bond holders will experience a rise in the capital value...
  • RETHINKING FIXED INCOME : A Stacked Deck

    04/23/2009 5:59:45 AM PDT · by george76 · 27 replies · 1,001+ views
    Bondsonline ^ | Kenneth Volpert
    Describing events in the bond market in 2008—and their future implications—is a bit like describing the construction of a house of cards. It helps to understand the structural differences between trading stocks and trading bonds. Stocks trade on electronic or bricks-and-mortar exchanges where buyers and sellers converge in a central meeting place and transact with anonymity. Bonds trade on an over-the-counter market using an intermediary, such as a bank or broker with full knowledge of the trade counterparty. It’s similar to trading in your car with a car dealer, which then looks for a buyer. The dealer is taking a...
  • Extraordinary Doings in the Bond Market (Negative Interest Rates signals deflation)

    11/20/2008 8:25:28 PM PST · by SeekAndFind · 60 replies · 2,102+ views
    Redstate.com ^ | Nov 20, 2008 | Francis Cianfrocca
    To go along with the piece I wrote earlier today, the bond market appears to have picked up on the theme of deflation. The 30-year US Treasury bond rocketed upward in price to more than 118 and a half by today’s market close, and much of the move came late in the day. This price corresponds to an interest-rate of 3.49% for the long bond. Just this morning, it was trading to yield over 3.90%. For the bond to drop over 40 basis points of yield in a single day is simply unheard of. If this pricing holds up (and...
  • Credit Suisse shuts down bond fund

    11/09/2008 5:13:41 AM PST · by TigerLikesRooster · 28 replies · 151+ views
    Market Watch ^ | 11/08/08 | Shawn Langlois
    Credit Suisse shuts down bond fund By Shawn Langlois, MarketWatch Last update: 2:11 p.m. EST Nov. 8, 2008 Comments: 42 SAN FRANCISCO (MarketWatch) - Swiss bank Credit Suisse Group said Saturday that it is shutting down a bond fund and its subfunds after their value was crushed by the global financial crisis, according to a published report. The bank said it will close the CS Bond Fund (Lux) Target Return because the lack of liquidity in the market has made it impossible to sell assets to meet redemption requests, Reuters reported. "In the course of the last days and weeks...
  • Would a Bush Bailout Save the GOP? (FreeRepublic cited)

    08/25/2007 12:09:28 AM PDT · by 2ndDivisionVet · 62 replies · 1,497+ views
    US News & World Report ^ | August 24, 2007 | James Pethokoukis
    <p>The last politician who took advice from the bond market was Bill Clinton. When he pushed for a tax hike back in 1993 to cut the budget deficit, it was under the assumption that bond investors would respond by bringing down interest rates. (The theory here is that deficits are inflationary. Inflation is bad for bonds.) Yet long-term interest rates surged from 6.45 percent when Clinton signed his tax-hike bill on Aug. 10, 1993, to 8.16 percent on Nov. 7, 1994, the day before the midterm congressional election where Republicans won back the House and Senate.</p>
  • 30-year Treasury bonds back on market

    02/10/2006 11:22:11 AM PST · by RWR8189 · 4 replies · 380+ views
    Associated Press ^ | February 10, 2006 | Martin Crutsinger
    WASHINGTON - The 30-year Treasury bond made a long-awaited return on Thursday, delighting bond investors and the cash-strapped federal government. The Treasury Department sold $14 billion of the bonds with a yield of 4.53 percent. Strong demand helped to keep the yield at its lowest level ever. The yield was 5.52 percent the last time the 30-year bond was auctioned, on Aug. 15, 2001. Bond sales stopped while the government ran a string of budget surpluses. Deficits returned and set records, so the government reintroduced the bonds, hoping to lock in interest payments at low rates for a longer period....
  • I've Got to Admit It's Getting Better All the Time(Status of the bond market--interesting)

    03/01/2005 4:46:44 PM PST · by sanchez810 · 12 replies · 684+ views
    pimpco bonds ^ | March 2005 | Bill Gross
    Who would have thought the bond market could have done "better than that" - better, that is, than what it typically does during periods of rising short-term rates? Not yours truly, nor Alan Greenspan who calls it a "conundrum" - a word with less impact than "irrational exuberance" but fraught with significance nonetheless if only because it acknowledges mystification by a man who is supposed to have a lot of the answers. The fact is that since the Fed has raised the overnight rate from 1% to 2½ % (with market expectations for more), the 5-year Treasury (a proxy for...
  • Market Timers or Market Cheaters?

    09/06/2003 12:52:35 PM PDT · by Starwind · 20 replies · 331+ views
    SafeHaven ^ | September 6, 2003 | John Mauldin
    September 06, 2003 Market Timers or Market Cheaters? by John Mauldin Given the wide disparity of views about the economy, it is little wonder that the reaction to Greenspans latest speech has been all over the board. That is compounded by the fact that bond price expectations are totally disconnected from Fed expectations. Are the bond market critics just a bunch of whiners (give me back my risk free trade!) or is there substance to their major beef? Who's really in charge here? Can the Fed trump the market? Predictably, I answer the latter question with both yes and no....