Keyword: bonds

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  • US Taxpayers To Fund Ukraine Bailout With Bond Guarantee

    03/20/2015 12:25:34 PM PDT · by tcrlaf · 3 replies
    Zerohedge ^ | 3-20-2015 | Durden
    <p>Last week we reported that as part of the latest "check kiting" bailout scheme, Greek pensioners (and now utility companies) are being raided by the Greek government so that it can repay its debts to the IMF, which in turn would go ahead and fund a part of the recently approved $17.5 billion bailout of Ukraine, which then would have the money to pay its debts to Russia... and the IMF. And, as we also noted, "The only question is how long will it take the current puppet government to syphon off enough funds into various illegal ventures and offshore accounts before the IMF has to step back in a la Greece with bailout #2."</p>
  • Billionaires Dumping Stocks, Economist Knows Why

    02/26/2015 12:18:13 PM PST · by Citizen Zed · 52 replies
    newsmax ^ | 2-26-2015
    A handful of billionaires are quietly dumping their American stocks . . . and fast. Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods. Buffett’s holding company, Berkshire Hathaway, has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced its overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold...
  • 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,...
  • ECB Pulls The Trigger: Blocks Funding To Greece - Full Statement

    02/04/2015 1:17:23 PM PST · by tcrlaf · 22 replies
    Zerohedge ^ | 1-4-2015 | Durden
    Just what the market had hoped would not happen... *ECB SAYS IT LIFTS WAIVER ON GREEK GOVERNMENT DEBT AS COLLATERAL *ECB SAYS IT CAN'T ASSUME SUCCESSFUL CONCLUSION OF GREECE REVIEW What this means simply is that since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate, the ECB has just given a green light for Greek bank runs... and all the worst parts of the bible (or merely a negotiating move to let Greece see just what kind of chaos this will create). And now finally, after many years...
  • "World Running Out of Positive-Yield Bonds"

    01/24/2015 8:58:19 AM PST · by Kaslin · 9 replies ^ | 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: 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...
  • All Swiss government bond yields out to nine years go negative

    01/15/2015 7:42:16 PM PST · by Signalman · 10 replies
    Reuters ^ | 1/15/2015 | Jamie McGeever
    Jan 15 (Reuters) - All Swiss government bill rates and bond yields out to nine- year maturities traded below zero on Thursday, after the Swiss National Bank stunned markets by scrapping its exchange rate cap on the franc and lowered interest rates to -0.75 percent. This was unprecedented in modern times, and analysts said it was only a matter of time before the benchmark 10-year yield dropped below zero too. Swiss rates and yields out to five years had already been trading below zero, but the SNB's bombshell turned the yield on nine-year bonds negative for the first time as...
  • 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...
  • How the Swaps Market is Preparing for a Venezuelan Default

    12/10/2014 9:58:43 AM PST · by george76 · 4 replies
    wsj ^ | Dec 4, 2014 | Christopher Whittall
    Venezuela is really feeling the pinch from sliding oil prices. Now its bonds are in such bad shape that some investors are treating the country’s default as a near certainty. And they are taking action. How? Well certain banks have started to offer swap contracts that allow investors to fix the amount they can recover on insurance bought against a restructuring of the country’s debt, according to investors. If CDS contracts are triggered, the cheapest Venezuelan bonds trading in the market at that time will be used to determine payouts to protection holders. Those not wanting to take any chances...
  • Billions fly out the door at Pimco (Bill Gross)

    09/29/2014 4:48:27 AM PDT · by MeneMeneTekelUpharsin · 13 replies
    Market Watch ^ | 29 September 2014 | Kirsten Grind, Gregory Zuckerman and Min Zeng
    Pacific Investment Management Co. suffered roughly $10 billion of withdrawals following the Friday departure of co-founder Bill Gross, a person familiar with the matter said, a sign of how quickly Mr. Gross’s surprise move is reshaping the bond-investing landscape. Pimco is bracing for more outflows on the heels of the veteran investor’s departure after months of internal strife over his leadership. At the same time, some managers say they remain committed to the firm. Some within the Newport Beach, Calif., investment firm are projecting it will lose at least $100 billion or more in assets due to withdrawals, the person...
  • About That Friday Bounce

    09/27/2014 9:01:51 AM PDT · by Seizethecarp · 11 replies
    Seeking Alpha ^ | September 27, 2014 | Eric Parnell, CFA
    First, the late Friday rally did manage to break the large-cap index back out above the downward sloping trading channel that has dominated the month, but only barely. Moreover, stocks quickly encountered heavy resistance at around 3PM at a shorter-term and much steeper downward sloping trading channel that has formed since the market peak on September 19. In short, it was a good bounce on Friday, but U.S. large-cap stocks still have a long way to go before they are even remotely in the clear to stage the next advance to new highs. For the rest of the U.S. stock...
  • Pimco Founder and Bond Guru, Bill Gross Quits Firm for Janus Capital

    09/26/2014 6:13:02 AM PDT · by SeekAndFind · 16 replies
    TIME ^ | 09/26/2014 | Laura Lorenzetti
    Bill Gross, who co-founded Pacific Investment Management, or Pimco, in 1971, will leave his own firm to join competitor Janus Capital. Gross served as the firm’s chief investment officer and managed the Pimco Total Return fund — one of the world’s largest bond funds with more than $1.9 trillion in securities, according to the company’s website. The fund has not done well for years, though, and has been plagued by huge outflows. “I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated...
  • Argentina Is Going Rogue

    08/20/2014 9:47:09 PM PDT · by blam · 18 replies
    BI ^ | 8-21-2014 | Linette Lopez
    Linette LopezAugust 20, 2014Muted headlines about bond swaps aren't doing justice to the announcement Argentina's president made last night. With her attempt to pass a law nullifying a U.S. Court's ruling that the country pay all its creditors, Argentina is effectively turning its back on the rules governing international finance. If Argentina's congress passes this law, the country could enter a place where rules no longer matter and negotiation with the hedge funds to which it owes over $1.3 billion in sovereign debt are all but impossible. What this law does is put debt that was once legally governed by...
  • Moody's pushes Puerto Rico debt deep into junk status

    07/01/2014 2:58:11 PM PDT · by george76 · 13 replies
    AFP ^ | 01 July 2014
    Ratings company Moody's on Tuesday slashed Puerto Rico's debt rating by three notches into even deeper junk status after the US territory passed a debt-restructuring law. Moody's Investors Service cut the rating to "B2" from "Ba2" and said the outlook was negative, indicating further downgrades were possible. Now dubbed the "Greece of the Caribbean," the archipelago is, like Greece, reeling under massive debt. Over the past decade, the commonwealth's debt has doubled to nearly $70 billion and investors are growing increasingly worried the government is running out of cash. In a bid for debt relief, the Puerto Rican authorities recently...
  • Argentine Default Looms; Refuses To Negotiate; Admits Next Bond Payment "Impossible"

    06/19/2014 8:12:51 AM PDT · by SeekAndFind · 15 replies
    Zero Hedge ^ | 06/19/2014 | Tyler Durden
    Argentina's attempt to work around SCOTUS decision in favor of the 'holdouts' was rejected (under anti-evasion orders) last night leaving Argentina no alternative but to threaten to default on its debt. The government called it "impossible" to pay bond service due on June 30, because payment to holders of restructured bonds could not be made unless the 'holdouts' were paid $1.33 billion at the same time (and Argentina's economy minister argues could be up to $15 bn) which the distressed country clearly does not have. For the first time in 12 years, Argentina has agreed to negotiate with the...
  • Russia Dumps 20% Of Treasury Holdings, Mystery "Belgium" Buyer Adds Another $40 Billion

    05/15/2014 10:02:41 AM PDT · by tcrlaf · 22 replies
    Zerohedge ^ | 5-15-2014 | Tyler Durden
    Back in mid-March, there was a brief scare after the start of the Ukraine conflict, when Fed custody holdings plunged by a record $104.5 billion (if promptly bouncing back the following week), leading many to believe that Russia may have dumped its Treasurys, or at least change its bond custodian. We noted that we wouldn't have a definitive answer until the May TIC number came out to know for sure how much Russia had sold, or if indeed, anything. Moments ago the May TIC numbers did come out, and as expected, Russia indeed dumped a record $26 billion, or some...
  • Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer

    05/14/2014 12:22:37 PM PDT · by Nachum · 14 replies
    zero hedge ^ | 5/14/14 | tyler durden
    The bailout floodgates are open and the US taxpayer is footing the bill once again - whether through IMF loans or more directly. Today saw Ukraine issue $1 Billion 5-Year Notes at a stunningly low risk of only 28bps above US Treasuries and dramatically cheaper than the cost of capital in the public markets (and from the IMF) which yield over 10%. The reason for the 1) low cost, and 2) actual ability to raise debt... the bond is guaranteed by the US Agency for International Development and "assures full repayment of principal and interest" based on the full faith...
  • Interest Rates Jump After Weak Bond Auction

    05/08/2014 11:15:21 AM PDT · by PoloSec · 7 replies
    Business Insider ^ | May 8 2014 | Sam Ro
    Long-term bonds are tumbling and interest rates are spiking after a 30-year Treasury bond auction saw weak demand. According to Bloomberg, 30-year Treasury bonds sold at a yield of 3.440%, which was much higher than the 3.392% expected by analysts. The bid-to-cover ratio, a measure of demand, was low at 2.09. Analysts were looking for a ratio of closer to 2.36. The results of the auction came out at 1:01 p.m. ET, which was when prices plunged.
  • Furious Russia, Downgraded Just Above Junk By S&P, Proposes "Scorched Earth" Retaliation on NATO

    04/25/2014 7:30:37 AM PDT · by SeekAndFind · 19 replies
    Zero Hedge ^ | 04/25/2014 | Tyler Durden
    Cyprus and Russia - what's the difference (aside from the fact that the former was a money laundering offshore center of the latter until last year of course)? If you said one is a lackey to statist, selfish banker interests, and after having its economy thoroughly destroyed by the great doomed European sociopolitical (and pathological) experiment, came crawling back to its Eurozone masters, while the other couldn't care one bit about Pax Petrodollariana and the global central bank cabal, you are right. In which case it will also be clear why a few hours ago that joke of a...
  • Santelli Slams "Don't Ignore The Long-End... Recessionary Pressures Are Building"

    04/10/2014 7:36:05 PM PDT · by Nachum · 2 replies
    Zero Hedge ^ | 4/10/14 | tyler durden
    With 30 year bond yields set to close their lowest in 10 months, CNBC's Rick Santelli is concerned at the signals that the Treasury yield curve is sending.If yesterday's minutes from the Fed were supposed to walk back their 'hawkish' tone, then Santelli slams they are "gonna need a really big billboard" because the term structure is still flattening. "When 'flattening' is the theme, that is not painting a rosy outlook for the long-term economy," and as Santelli warns, this is when the Fed is pulling out of its extraordinary policies. Santelli screams, "the entire monetary policy side has to...
  • New doomsday poll: 99.9% risk of 2014 crash

    03/15/2014 2:47:50 PM PDT · by Oldeconomybuyer · 22 replies
    Market Watch ^ | March 15, 2014 | by PAUL B. FARRELL
    Commentary: Black-swan crisis warning for now through mid-April. SAN LUIS OBISPO, Calif. — Global risks are accelerating. This is our fourth major poll update of industry leaders: A critical review of their warnings from early last year when we first predicted a 87% risk of a crash: Bernanke’s Fed saw an “unsustainable bubble” ... Gross: “credit supernova” ... Gundlach: “kaboom ahead” ... Ellis: “Don’t own bonds” ... Shilling: “shocker” ... Roubini: “Prepare for perfect storm” ... Shiller: “Irrational exuberance is back” ... Schiff: “Doubling down” on “doomsday” prediction ... InvestmentNews’ warning 90,000 advisers: “tick, tick ... boom!”
  • Citing Growth, Fed Again Cuts Monthly Bond Purchases

    01/29/2014 11:36:50 AM PST · by John W · 8 replies
    The New York Times ^ | January 29, 2014 | BINYAMIN APPELBAUM
    WASHINGTON — The Federal Reserve announced Wednesday another $10 billion cut in its monthly bond purchases in a statement that attributed the decision to “growing underlying strength in the broader economy.” The statement, published after a two-day meeting of the Fed’s policy-making committee, reflected the optimism of Fed officials that the economy is finally poised for faster growth after years of false starts and setbacks. It was the committee’s first unanimous decision since 2011. The Fed said it would expand its holdings of Treasury and mortgage-backed securities by $65 billion in February, down from $75 billion in January and $85...
  • Fitch downgrades Chicago bond ratings: Downgrades Chicago bonds based on pension crisis

    11/13/2013 9:24:13 AM PST · by SeekAndFind · 6 replies
    Finance ^ | 11/13/2013
    SPRINGFIELD, Ill. (AP) -- Fitch Ratings has downgraded the credit worthiness of Chicago's bond debt because of its public pension problems. Fitch dropped the rating from AA- to A- on $8 billion in general obligation bonds, backed by property taxes. It also dropped the rating on $497 million in sales tax bonds — paid for by both the city's local sales tax and its share of the state sales tax.
  • Broken Bonds: Chicago routinely uses bond money to paper over its budget problems

    11/03/2013 1:57:05 AM PDT · by Cincinatus' Wife · 14 replies
    Chicago Tribune ^ | November 1, 2013 | Jason Grotto, Heather Gillers, Patricia Callahan and Alex Richards
    Last year’s payments on the city’s general obligation debt represented 12 percent of all government expenditures and ate up 63 percent of property taxes collected."When municipal officials want to build for the future, they have a powerful financial tool at their disposal: general obligation bonds that yield millions of borrowed dollars. The money is meant to let cities move forward on costly projects that will serve the community for decades.But in an unprecedented analysis of Chicago’s finances, a Tribune investigation found that city officials have long abused their borrowing privileges, spending funds meant for long-term initiatives on problematic short-term...
  • Treasury Was Open for Business on Third Day of ‘Shutdown:’ Issued $106B in New Debt

    10/06/2013 10:49:57 AM PDT · by Olog-hai · 4 replies
    Cybercast News Service ^ | October 6, 2013 - 8:59 AM | Terence P. Jeffrey
    Although politicians and the press have generally referred to what has been happening in the federal government since Tuesday, Oct. 1 as in a “shutdown” or “partial shutdown,” that did not prevent the U.S. Treasury from being open for business on Thursday—the third day of the “shutdown” and issuing $106.291 billion in new debt, according to the Daily Treasury Statement released at 4:00 p.m. on Friday. … Even though the net debt held by the public declined by $5.039 billion in Thursday, and the cash reserved declined by $33.080 billion, according to the Daily Treasury Statement, the same statement said...
  • All Quiet On The Potomac Front: Gov’t Spending & Deficit FALL

    10/04/2013 1:42:12 PM PDT · by whitedog57
    Confounded Interest ^ | 10/04/2013 | Anthony B. Sanders
    Friday is the fourth day after President Obama and Senate Majority Leader Harry Reid shut down the Federal government. Both President Obama and Reid said they refuse to negotiate with the House of Representatives. obama a The US Treasury 10 year yield is actually up 4 basis point on Friday and up 3.5 basis points for the week. ust10100413 The Dow INDU index is down slightly since the shutdown began (but up 76 points on Friday). indu100413 Gold is down 1.99% over the course of the last five days. gold100413 US Dollar-Euro exchange rate is almost back where it started...
  • The Road Less Traveled

    10/01/2013 1:48:42 AM PDT · by Tolerance Sucks Rocks · 11 replies
    Bethesday Magazine ^ | September 2013 | Eugene L. Meyer
    Driven on the Intercounty Connector lately? No? You’re not alone. Many haven’t. The 18.8-mile highway—the first stretch of which opened two and a half years ago after great hype and amid great controversy—is the road less traveled. Traffic counts are well below early projections, and revenue from tolls—needed to pay off the bonds that were sold to build the road—is far less than originally anticipated. The initial estimated cost of $1 billion has ballooned to $2.4 billion—or as much as $4 billion if you include interest payments. Consequently, all tolls on Maryland highways, bridges and tunnels have been raised in...

    09/19/2013 8:17:02 AM PDT · by SatinDoll · 26 replies
    The Market-ticker ^ | Sept. 9, 2013 | Karl Denninger
    This much has been determined yesterday -- The Fed could not handle a 2.8% 10 year Treasury rate. Nor could it handle any further increases. But consideration of the impact of this policy on the common man, along with the destruction of purchasing power and outright theft from the people who produce the services (and few goods remaining) in this nation was damned -- exactly as has been the case for the last three decades. What Bernanke did yesterday was guarantee a crash. He guaranteed it because he took what was a clear opportunity to take what had been priced...
  • 10-year Treasury yields close in on 3%

    09/05/2013 10:54:46 AM PDT · by Deo volente · 42 replies ^ | September 5, 2013 | Ben Eisen
    NEW YORK (MarketWatch) — Treasury prices tumbled on Thursday as the benchmark 10-year note yield pushed to the brink of 3%, a psychological threshold emblematic of its sharp climb since early May.
  • 6% Treasury yields sooner than you think?

    07/31/2013 2:20:30 PM PDT · by Bigtigermike · 16 replies
    CNBC via Yahoo ^ | Wednesday July 31, 2013
    The Federal Reserve will lose control of interest rates as the "great rotation" out of bonds into equities takes off in full force, according to one market watcher, who sees U.S. 10-year Treasury yields hitting 5-6 percent in the next 18-24 months. "It is our opinion that interest rates have begun their assent, that the Fed will eventually lose control of interest rates. The yield curve will first steepen and then will shift, moving rates significantly higher," said Mike Crofton, President and CEO, Philadelphia Trust Company told CNBC on Wednesday. "If the great rotation that everybody talks about out of...
  • Why Detroit’s Bankruptcy Could Detonate a $3.7-Trillion Muni Bond Bomb

    07/24/2013 10:26:53 AM PDT · by publius911 · 29 replies
    Wall Street Daily web ^ | July 24, 2013 | Louis Basebese
    The first officially recorded municipal bond was issued by the City of New York for a canal in 1812. It was a general obligation bond, meaning the city pledged every available resource – most notably, tax revenue – to repay the debt. So, in theory, unless the city lost its legal ability to levy taxes, which it never would, investors would be repaid... If Orr succeeds, look for all hell to break loose. Just like we witnessed during the real estate collapse when homeowners started walking away from their mortgage obligations without any recourse, other cash-strapped municipalities are destined to...
  • SEC accuses Miami of misleading investors

    07/19/2013 6:27:45 PM PDT · by george76 · 7 replies
    Washington Post ^ | July 19, 2013
    The Securities and Exchange Commission accused Miami and its former budget director of securities fraud related to several municipal bond offerings. The city and Michael Boudreaux made materially false and misleading statements and omissions about interfund transfers in three 2009 bond offerings totaling $153.5 million, the SEC said in a statement Friday. Boudreaux orchestrated the transfers to mask growing deficits in the city’s general fund, the SEC said. The SEC in 2010 started cracking down on state and local governments for not providing investors in the municipal bond market with accurate information about pension liabilities. Since then, Illinois and New...
  • Treasury 10 Yr Auction Results (10 Year Rises) And FOMC Minutes

    07/10/2013 11:16:27 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 07/10/2013 | Anthony B. Sanders
    Fed Chairman Ben S. Bernanke will have a Q&A following the release on the Fed’s FOMC minutes today at 2pm EST. Here are the minutes. Quick summary of the last FOMC meeting: half the voting members want to stop asset purchases later this year. The other half, wait for improving economic conditions. The reaction in the 10 year Treasury yield? t10reaction But prior to his Q&A session, the 10 year Treasury auction went off as expected. trreas10yraux The 10 Year High Yield continues to climb. ust10ihg The 30 year auction is tomorrow. Stay tuned!
  • The Trigger Has Been Pulled And The Slaughter Of The Bonds Has Begun

    06/26/2013 12:04:28 PM PDT · by blam · 24 replies
    TEC ^ | 6-26-2013 | Michael Snyder
    The Trigger Has Been Pulled And The Slaughter Of The Bonds Has Begun By Michael Snyder June 25th, 2013 The Bears Are Unleashed On Wall StreetWhat does it look like when a 30 year bull market ends abruptly? What happens when bond yields start doing things that they haven't done in 50 years? If your answer to those questions involves the word "slaughter", you are probably on the right track. Right now, bonds are being absolutely slaughtered, and this is only just the beginning. Over the last several years, reckless bond buying by the Federal Reserve has forced yields down...
  • 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...
  • U.S. Treasury Bond Market Implosion Has Officially Begun

    06/21/2013 10:31:27 AM PDT · by blam · 26 replies
    Market Oracle ^ | 6-21-2013 | Graham Summers
    U.S. Treasury Bond Market Implosion Has Officially Begun Interest-Rates / US Bonds June 21, 2013 - 06:02 PM GMT By: Graham Summers The QE Infinite parade officially ended yesterday when Bernanke hinted at tapering QE later this year or in mid-2014. I first warned about this in mid-May writing, "If Bernanke is going to step down (as hinted by his decision to skip out on the Jackson Hole meeting) he’s not going to want to leave with the Fed going at QE 3 and QE 4 full throttle. Instead his best bet would be to take his foot off the...
  • Fed's Bullard: Bernanke bond announcement was poorly timed

    06/21/2013 8:01:55 AM PDT · by mykroar · 14 replies ^ | 6/21/2013 | Reuters
    St. Louis Federal Reserve Bank President James Bullard worried that the Fed's decision earlier this week to announce a plan to reduce bond buying was poorly timed, the regional Fed bank said in a statement on Friday explaining his dissent. "President Bullard ... felt that the committee's decision to authorize the chairman to lay out a more elaborate plan for reducing the pace of asset purchases was inappropriately timed," the St. Louis Fed's statement said. Bullard was one of two dissents cast on Wednesday by members of the U.S. central bank's policy-setting Federal Open Market Committee. The other dissent, by...
  • Gold, Silver, Stocks, Bonds Plunge On Fed Noise And China Debt Crisis Risk

    06/20/2013 10:38:29 AM PDT · by blam · 33 replies
    The Market Oracle ^ | 6-20-2013 | GoldCore
    Gold, Silver, Stocks, Bonds Plunge On Fed Noise And China Debt Crisis Risk Commodities / Gold and Silver 2013 Jun 20, 2013 - 04:14 PM GMT By: GoldCore Today’s AM fix was USD 1,303.25, EUR 986.34 and GBP 842.38 per ounce. Yesterday’s AM fix was USD 1,366.00, EUR 1,019.86 and GBP 874.91 per ounce. Gold fell $16.10 or 1.18% yesterday and closed at $1,351.00/oz. Silver sank to $21.25 and ended down 1.25%. Bonds, shares plus gold and silver fell sharply around the world this morning after the U.S. Federal Reserve again suggested an end to their easy money policies. Data...
  • Global Recession Forecast - Is PIMCO's Bill Gross Wrong Again?

    06/17/2013 9:53:07 AM PDT · by blam · 6 replies
    Market Oracle ^ | 6-17-2013 | Monet Morning/Keith Fitz-Gerald
    Global Recession Forecast - Is PIMCO's Bill Gross Wrong Again? Stock-Markets / Financial Markets 2013 June 17, 2013 - 05:01 PM GMT By: Money Morning Keith Fitz-Gerald writes: Stuart Varney put the question directly to me last week during his Fox Business show: What do I make of comments from PIMCO's Bill Gross...that he's projecting a 60% chance of a global recession in the next three to five years? Now, Bill Gross is obviously one of the most powerful men in the world. PIMCO, the firm he founded, is the world's biggest bond manager. He has assets under management of...
  • JIM O'NEILL: We Could See A Bond Crash

    06/14/2013 10:31:55 AM PDT · by blam · 12 replies
    Business Insider ^ | 6-14-2013 | &#61517;Steven Perlberg
    JIM O'NEILL: We Could See A Bond Crash Steven Perlberg Jun. 14, 2013, 12:33 PM As the market speculates on when the Fed will begin to slow its quantitative easing program, former Goldman Sachs Asset Management chairman Jim O'Neill isn't alone in believing a taper would mean turbulence for financial markets. But for O'Neill, it would also "not be a stretch" to see 5% yields on the 10-year Treasury, reports Bloomberg. Given the 10-year's current 2.11% yield, that would imply a big sell-off in the bond market. O'Neill talked about that — and his prediction for a bond crash —...

    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...
  • 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...
  • NIKKEI (Japan) 15,000! First Time Since January 2008

    05/14/2013 8:24:16 PM PDT · by blam · 10 replies
    TBI ^ | 5-14-2013 | Sam Ro
    NIKKEI 15,000! First Time Since January 2008 Sam Ro May 14, 2013, 8:07 PM Markets just opened in Asia, and they're following the U.S. markets way higher. Of note is Japan's Nikkei 225, which just burst through 15,000. Dow Jones reports this is the first time the Nikkei has been above 15,000 since January 4, 2008. Leading the way is electronics maker Sony, which is up by around 12%. Hedge fund heavy hitter Dan Loeb made a proposal to management to split up the company. Loeb said he was willing to commit a significant amount of capital to support the...
  • GUNDLACH: Anyone Who Says Interest Rates Will Rise Soon Is 'Absolutely Wrong'

    05/03/2013 11:10:03 AM PDT · by blam · 2 replies
    TBI ^ | 5-302013 | Lance Roberts, Street Talk Live
    GUNDLACH: Anyone Who Says Interest Rates Will Rise Soon Is 'Absolutely Wrong' Lance Roberts, Street Talk LiveMay 3, 2013, 10:52 AMJeffry Gundlach In the continuing series of reports from the 10thannual Strategic Investment Conference, presented Altegris Investments and John Mauldin, the question of why you should own bonds was answered by Jeff Gundlach who is the CEO and CIO of Double Line. Why own bonds? I have been presented with the question twice in my career. The first time was in the 90’s when bonds and stocks were highly correlated. If stocks rose, bond prices fell, and vice versa. Therefore,...
  • Unemployment Declines As Sequester Takes Hold (Obama Scare Tactics Fail)

    05/03/2013 10:39:28 AM PDT · by whitedog57 · 7 replies
    Confounded Interest ^ | 05/03/2013 | Anthony B. Sanders
    <p>Good News! Non-farm payrolls increase by 165,000 and the unemployment rate declined to 7.5%.</p> <p>But I thought the Sequester would destroy employment? Apparently not. The Administration’s Sequester Scare tactics failed.</p>
  • Currency Wars: NASDAQ and Europe Stocks Down 2%, Volatility Up, Sov Yields Down

    04/17/2013 9:50:56 AM PDT · by whitedog57
    Confounded Interest ^ | 04/17/2013 | Anthony B. Sanders
    Uncertainty increased in global markets as investor fear grows. Recent Central Bank aggressive moves (Fed, Bank of Japan and South Korea) send a signal of global economic weakness. It didn’t help that former ECB executive board member Lorenzo Bini-Smaghi said that “policy makers led by President Mario Draghi will act to weaken the euro.” Is this the ECB’s return fire in the new currency war? US stock market indices are down today, particularly the NASDAQ index. And Europe is down over 2%. Real estate investment trusts (REITS) also tanked today. The volatility index VIX climbed today. Sovereign yields are up...
  • Fed presidents slug it out over bond-buying policy

    04/03/2013 10:36:46 AM PDT · by Ernest_at_the_Beach · 3 replies
    Marketwatch ^ | April 3, 2013, 8:21 AM | – Steve Goldstein
    It’s not often — but not unpredecented — for Federal Reserve officials to make joint appearances. But Tuesday night’s gathering when Richmond Fed President Jeffrey Lacker hosted Chicago Fed President Charles Evans was notable for the debate format that ensued from the opposite ends of the monetary policy spectrum.Lacker is a reliable hawk, who wants the central bank’s bond buying efforts to stop, and dissented on every policy decision last year (he doesn’t have a vote this year). Evans by contrast is a dove among doves, and an influential member who came up with the idea — now adopted by...
  • Stockton, CA bankrupt: Expect Cyprus like solution for bond holders

    04/02/2013 6:05:54 AM PDT · by outpostinmass2 · 20 replies
    It is not surprising that they quickly found the source of their pain, the bond holders; those money loving, rich old white guys who know nothing but greed. It is their fault that huge lifelong pensions and free healthcare for life, regardless of how long you worked for the city has not turned Stockton into the utopia it should have been. It is amazing how greedy some people are, they simply don’t care about their fellow man. In a case that will most likely go to the US Supreme Court, the municipal bondholders will be pitted against the California Public...
  • Are treasuries a way of avoiding the bank collapse?

    04/02/2013 6:39:00 AM PDT · by E. Pluribus Unum · 40 replies
    04/02/2013 | E. Pluribus Unum
    If I move my savings to a brokerage account and purchase 2-year treasuries (the shortest term available at my broker) would that at least protect me from having my money stolen by the banks?