Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Thursday, May 09, 2013
ECB Ponders Buying PIIGS Toxic Debt / Interest-Rates / Eurozone Debt Crisis
By: Mike_Shedlock
In an effort to stimulate small and medium (SME) lending the ECB considers acquiring banks toxic debt of the periphery. Via mish-modified translate from Spanish Libre Mercado.
Read full article... Read full article...The European Central Bank (ECB) could "soon" start buying bad debts of Southern European countries in an attempt to end the fragmentation in the eurozone and boost funding to SMEs, as confirmed by the German ECB representative Jörg Asmussen.
Wednesday, May 08, 2013
Real and Illusory Credit / Interest-Rates / Credit Crisis 2013
By: Fred_Sheehan
"When Ro-Ro goes No-No" expounded upon the ultimate futility of conjuring illusory wealth. Bernard Connolly's analysis, "Rethinking the Rogoff-Reinhoff Thesis," made the case. Connolly wrote This Time is Different: Eight Centuries of Financial Folly, "is largely an exercise in measurement rather than theory (while many of the data in the book are new, little or none of the theory is), it can give rise - and has given rise - to dangerously misleading popular interpretations of the data which its authors had so painstakingly assembled." Connolly then offered the theory; what follows is complementary data.
Tuesday, May 07, 2013
U.S. Bond Market Breakdown / Interest-Rates / US Bonds
By: Robert_M_Williams
"Facts are the enemy of truth."- Don Quixote - "Man of La Mancha"
Last week we had the FOMC decision by the US Federal Reserve in which they said that they would continue purchasing US $85 billion a month with basically no end in sight. Aside from that they stated for the first time that they would consider increasing the amount purchased (QE) if the economy were to weaken further. So I don’t have to be able to read the tea leafs to know that puts the Fed squarely on it’s chosen path of monetary stimulus, or QE as it is called, where they go into the bond market and continue to buy debt while holding rates at zero. During the first quarter the Fed purchased 72% of all new debt issued, so you could say it is a market maker. Some might go so far as to say that they are the market.
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Tuesday, May 07, 2013
QE Unprecedented, Exit Will Be a 'Messy Process' / Interest-Rates / Quantitative Easing
By: Bloomberg
David Zervos, head of global fixed income at Jefferies, told Bloomberg TV's Erik Schatzker and Sara Eisen on "Market Makers" today that the Federal Reserve's QE program is "the greatest monetary policy experiment of our lifetime and I do not think that anyone is smart enough, me, any central banker up there" to figure out how to properly exit.
Monday, May 06, 2013
U.S. Treasury Bond Market Sell-Off Imminent? / Interest-Rates / US Bonds
By: DailyGainsLetter
Moe Zulfiqar writes: In its most recent statement, the Federal Open Market Committee (FOMC) said it will continue to print $85.0 billion a month. With this money, it will buy $45.0 billion worth of long-term government debt and $40.0 billion worth of mortgage-backed securities (MBS) each month.
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Sunday, May 05, 2013
LIBOR The Next Wall Street Mega-Scandal Has Arrived / Interest-Rates / Credit Crisis 2013
By: Money_Morning
Shah Gilani writes: Well, it looks like the major financial institutions can't learn a lesson. They're neck deep in yet another financial scandal of global proportions.
U.S. and international securities regulators investigating manipulation of LIBOR, the world's most important set of benchmark interest rates, have uncovered another price-rigging scheme, this one in the $379 trillion market for interest rate swaps.
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Friday, May 03, 2013
Lower Bond Yields Enticing PIMCO to Sell European Debt / Interest-Rates / Eurozone Debt Crisis
By: Bloomberg
PIMCO's Bill Gross told Tom Keene and Michael McKee on "Bloomberg Surveillance" today that "lower yields and the higher prices are enticing us to gradually reduce our position" in European debt.
Gross also said that the new normal of subpar economic growth in the U.S. is intact even after employment increased more than forecast in April. Gross said, "We don't see higher real growth than 2 percent going forward...We've seen basically 3.5 percent nominal GDP growth even in the midst of an accelerating housing sector."
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Friday, May 03, 2013
Expert Forecasts U.S. Treasury Bond Market Crash / Interest-Rates / US Bonds
By: Money_Morning
David Zeiler writes: Not only is a bond market crash inevitable, but it will hit sooner than many think - by 2015 or 2016 at the latest, according to Michael Pento, president of Pento Portfolio Strategies.
"It's the most overpriced, over-owned, oversupplied market in the history of American economics," Pento said of the bond market in an interview with The Street.
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Wednesday, May 01, 2013
Apple Stock Sells Record $17 Billion of Corporate Debt at Just 1.81% / Interest-Rates / Corporate Bonds
By: Richard_Shaw
Apple borrowed $17 billion today in various maturity tranches, some floating rate and some fixed rate. The offering was oversubscribed by about 3 times.
It was the largest bond offering in history.
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Wednesday, May 01, 2013
Financial Collapse - Is Bernanke Preparing to Jump Ship? / Interest-Rates / US Interest Rates
By: Graham_Summers
The Fed meets today and tomorrow. The ECB meets on Thursday. Those will be the defining market forces for the next three trading sessions.
There is little if any point in trying to trade this week (at least until Thursday). The Fed is notorious for leaking info to the well-connected. The most recent “accidental” sending of a report a day early is just the latest example.
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Wednesday, May 01, 2013
The Real Reason U.S. Government Is Paying Down the National Debt / Interest-Rates / US Debt
By: Money_Morning
David Zeiler writes: After six years of non-stop deficit spending that has added $8.2 trillion to the national debt, the U.S. Treasury has announced that it expects to reduce the country's debt by $35 billion this quarter.
Given that national debt growth has rocketed past $16.7 trillion and is on track to exceed $17 trillion at some point in the fall, a $35 billion reduction is laughably tiny. It's just 0.02% of what we as a nation owe.
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Wednesday, May 01, 2013
Global Central Bank Money Printing Will Cause Long-Term Damage / Interest-Rates / Quantitative Easing
By: InvestmentContrarian
Sasha Cekerevac writes: One of the most confusing topics of late is the low level of the inflation rate even though monetary stimulus has been quite aggressive worldwide. The most recent data point came from Japan, in which consumer prices dropped by 0.5% in March versus the same time in 2012.
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Monday, April 29, 2013
Welcome to the Next Subprime Bubble / Interest-Rates / US Debt
By: Money_Morning
Greg Madison writes: Who could forget the subprime mortgage crisis of just a few years ago?
If there's one good thing that came out of that nightmare, it's that we - borrowers, lenders, financial institutions all - learned that securitizing bad loans and letting them spread like poison throughout the financial system was a bad thing.
We can look back at the subprime crisis with the wisdom of afterthought, and see all the mistakes laid bare.
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Friday, April 19, 2013
U.S. Bond Market Trouble Ahead / Interest-Rates / US Bonds
By: Investment_U
Alexander Green writes: Warren Buffett recently opined that bonds should come with a warning label these days.
That is doubly true of most bond funds. Many investors are about to get steamrolled. But if you act now, you can avoid getting hurt.
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Monday, April 15, 2013
Euro-zone Debt Crisis is Back / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
David Zeiler writes: The Eurozone debt crisis that was supposed to have blown over long ago instead has become more like an endless game of Whac-a-Mole, with both new and old problems popping up faster than European leaders can bop them.
As Europe's finance ministers gathered in Dublin today (Friday), they faced at least half a dozen major issues threatening the fiscal health of the Eurozone.
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Saturday, April 13, 2013
All of a Sudden, 2013 Becomes Another Trillion-Dollar Deficit Year / Interest-Rates / US Debt
By: Profit_Confidential
In its monthly statement of receipts and outlays for the month, the Treasury Department reported that the U.S. government incurred a budget deficit of $107 billion for the month of March 2013. (Source: Department of the Treasury, April 10, 2013.) This monthly budget deficit was a result of the government spending $293 billion while only taking in $186 billion in March.
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Thursday, April 11, 2013
Short Japan Bonds to Profit From the End of the Monetary System / Interest-Rates / International Bond Market
By: Jeff_Berwick
While most people will lose their shirts as The End Of The Monetary System As We Know It (TEOTMSAWKI) continues down its predictable path there are some who will make fortunes.
At The Dollar Vigilante we’ve already been ahead of the curve on many profitable ventures related to TEOTMSAWKI. TDV Senior Editor, Ed Bugos, has been a proponent of owning gold since 2000 when it was at $200 and upon TDV’s founding in 2010 we immediately added gold as the largest part of our portfolio while it was trading near $1,200 and quickly saw that rise to nearly $2,000.
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Wednesday, April 10, 2013
The Beginning of the End for Japanese Bonds / Interest-Rates / Japanese Interest Rates
By: Bloomberg
Kyle Bass, managing partner at Hayman Capital Management, told Bloomberg TV's Stephanie Ruhle and Erik Schaztker on "Market Makers" today that he thinks "it's the beginning of the end" for Japanese bonds. He said, "When I started sharing our views more globally it was the middle of 2010 and I said I believe the stress would begin to show itself in the next three years. Pretty much three years in, we're close, and the stress is beginning to show."
Tuesday, April 09, 2013
Global Sovereign Debt Skyrockets, Bubble to Burst / Interest-Rates / International Bond Market
By: DailyGainsLetter
Mitchell Clark writes: “Risk” is a four-letter word.
It’s the kind of thing you wish you spent a lot more time thinking about before a shock actually happens.
Right now, the Federal Reserve is re-inflating assets while sovereign debt skyrockets. It’s been doing so for a number of years now, and the stock market is moving.
Saturday, April 06, 2013
Forget About The Fed Dialing Back QE3 – U.S. Buy Bonds! / Interest-Rates / US Bonds
By: Sy_Harding
The economic recovery has been progressing so well that it had become almost a sure thing the Fed will begin phasing out its easy money policy and QE stimulus programs much earlier than planned, possibly beginning as early as this summer.
Even the Fed seems to be preparing markets for that probability with its recent statements, and speeches by individual Fed governors.