Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Thursday, July 26, 2012
US Treasury Bonds False Safe Haven, GOLD is the True Sanctuary / Interest-Rates / US Bonds
By: Jim_Willie_CB
As preface, consider that the USTreasury 10-year yield went below 1.4% this week. Some unenlightened celebrate the asset appreciation and point to a successful asset in performance in an otherwise dismal financial market. The Jackass said in the June 6th public article "USTBonds: Black Hole Dynamics" that such a success is a marquee billboard message of economic meltdown and systemic failure. As the rally continues, possibly the onliest rally outside of corn and soybeans in yet another disaster, people should focus on whether the systemic collapse will occur before the 10-yield hits 1.0% in my warning. Focus on four major points:
Wednesday, July 25, 2012
Horse-Whipping Interest Rates to Zero / Interest-Rates / US Interest Rates
By: Rob_Kirby
Note how we barely see the hand of the ‘mystery’ rider [Geithner]. Note the conduit [crop] through which the force is applied. Now note the animal that does the heavy lifting…
Interest Rate Swaps and the Long End of the Interest Rate Curve
The rest of the world has been a net seller of U.S. Treasuries for a number of years now. It has been the U.S. Treasury – exercising / implementing Imperialist U.S. monetary policy through the trading desks of the magnificent five [J.P. M., BofA, Citi, Goldy and MS] – IN THE LONG END OF THE INTEREST RATE CURVE by selling tens upon tens of Trillions of Interest Rate Swaps [IRS] – deals between the banks [payers of fixed] with the Exchange Stabilization Fund [ESF] brokered by the N.Y. Fed trading desk. This is what has kept things “appearing somewhat normal” in the long end of the interest rate curve.
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Wednesday, July 25, 2012
Fiat Currencies from Nullifying to Negative Nominal Interest Rates / Interest-Rates / US Interest Rates
By: Axel_Merk
The once unthinkable might become policy: negative nominal interest rates. Investors should care as they may be increasingly punished for not taking risks. Yet masochistic investors believe they may be the prudent ones given the risks lurking in the markets. What are investors to do, and what are the implications for the U.S. dollar and currencies?
Wednesday, July 25, 2012
Eurozone Continues to Unravel / Interest-Rates / Eurozone Debt Crisis
By: Ian_R_Campbell
Things continue to unravel in the Eurozone. Here is a quick overview of some of the events that have taken place over the past few days (in order of importance as I see things):
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Tuesday, July 24, 2012
The Relationship Between High Total Public Debt and Interest Rates / Interest-Rates / US Debt
By: John_Mauldin
The relationship between high total public debt and interest rates is controversial (to some); and in today’s Outside the Box Van Hoisington and Dr. Lacy Hunt of Hoisington Investment Management tackle the subject head-on, in their “Quarterly Review and Outlook” for Q2 2012. They bring important new evidence to the debate, citing three academic studies (including an April 2012 paper coauthored by Rogoff and Reinhart) and an historical retrospective that focuses on the debt-disequilibrium panic years of 1873 and 1929 in the US and 1989 in Japan. In their view, the onus of responsibility for the “Panic of 2008” falls on the sometimes-slumping shoulders of the Federal Reserve, for making money and credit too easily available, and then “[failing] to use regulatory powers to check the unsound lending and the concomitant buildup of non-productive debt.”
Monday, July 23, 2012
Soaring Spanish Bond Yields Another Hit to Growing Eurozone Debt Crisis / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
Diane Alter writes:
Investors today (Monday) have been selling on news that Spain might need more bailouts as its 10-year yield reached a record high.
Spanish bond yields reached a record high of 7.56% and the latest unemployment rate sits at a miserable 24.6%.
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Monday, July 23, 2012
Eurozone Debt Crisis Won't Be Fixed by "Bailout Lite" / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
Dr. Kent Moors writes:
The market red ink this morning (Monday) around the globe is the result of a usual suspect - Spain.
These days, if someone even sneezes in Madrid, Barcelona, or Córdoba (one of my favorite places, actually), investors go into intensive care all over the world.
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Saturday, July 21, 2012
The Libor Interest Rate Manipulation Scandal In Full Perspective / Interest-Rates / Market Manipulation
By: Paul_Craig_Roberts
The article about the Libor scandal, coauthored with Nomi Prins, received much attention, with Internet repostings, foreign translation, and video interviews. To further clarify the situation, this article brings to the forefront implications that might not be obvious to those without insider experience and knowledge.
The price of Treasury bonds is supported by the Federal Reserve’s large purchases. The Federal Reserve’s purchases are often misread as demand arising from a “flight to quality” due to concern about the EU sovereign debt problem and possible failure of the euro.
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Saturday, July 21, 2012
European Contagion Turns Into Domino / Interest-Rates / Eurozone Debt Crisis
By: Raul_I_Meijer
One day after the EU finally sanctioned the €100 billion bailout for Spain's banking system, for which the sovereign will remain on the hook, according to German finance minister Schäuble, who said there was no way the banks would be bailed out directly, developments were fast and furious.
Friday, July 20, 2012
Libor Manipulation Scandal Real Villain is the One Behind the Curtain / Interest-Rates / Banksters
By: Money_Morning
Shah Gilani writes:
There's nothing like pulling back the curtain on the fraud that's center stage in the Libor manipulation scandal and finding the levers are really being pulled by central banks.
It's not about the banks doing what they did. The revelation is this: Central banks are the biggest impediment to free markets and the reason capital markets have become casinos.
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Friday, July 20, 2012
The Disastrous 40-Year Debt Supercycle Is Coming To an End / Interest-Rates / US Debt
By: LewRockwell
David A. Stockman writes:The next Casey Research Summit, cohosted by Sprott, Inc. and titled Navigating the Politicized Economy, will feature another former White House official who is speaking out against irresponsible government spending: David Walker, the United States Comptroller General from 1998 to 2008. Joining him will be a blue-ribbon panel of other financial experts, including top market strategist Donald Coxe, legendary bond investor Lacy Hunt, and investing legends Doug Casey, Rick Rule, and Eric Sprott... and that's just for openers. Together, they'll help you understand where our politicized economy is today, where it's going, and how to profit from the whole mess.
Tuesday, July 17, 2012
Eurozone Needs Process, Not Money / Interest-Rates / Eurozone Debt Crisis
By: Axel_Merk
Crises are always going to happen, but they are less stressful when sound institutional processes are in place. The most positive takeaway of the recent Eurozone summit was the announcement of an integrated supervisory mechanism as a precondition to any bank bailout. A European guarantee of Spanish bank deposits without a corresponding handover of banking supervision would only perpetuate bad habits.
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Monday, July 16, 2012
The Real Libor Scandal... "With the Complicity of the Bank of England" / Interest-Rates / Banksters
By: Paul_Craig_Roberts
According to news reports, UK banks fixed the London interbank borrowing rate (Libor) with the complicity of the Bank of England (UK central bank) at a low rate in order to obtain a cheap borrowing cost. The way this scandal is playing out is that the banks benefitted from borrowing at these low rates. Whereas this is true, it also strikes us as simplistic and as a diversion from the deeper, darker scandal.
Sunday, July 15, 2012
Did The LIBOR Corruption Originally Officially Come To Light in 2007? / Interest-Rates / Banksters
By: DK_Matai
The US Department of Justice (DoJ) is preparing a criminal case against major banks and individuals over the manipulation of the London Inter Bank Offered Rate or LIBOR whilst private US and European investors prepare law suits. Collectively, the penalties and damages for civil and criminal actions could cost the banking industry anywhere between tens of billions to hundreds of billions of dollars according to different studies conducted by reputable sources. The New York Federal Reserve learned about concerns over the integrity of LIBOR in the summer of 2007, when a Barclays employee emailed one of their officials.
Friday, July 13, 2012
The Real LIBOR Scandal / Interest-Rates / Market Manipulation
By: Fred_Sheehan
Whatever can be said for and against Barclays and Bob Diamond, the story is in danger of exhausting itself at the wrong link in the chain. It has sidelined BubbleTV's around-the-clock coverage of Facebook. Mark Zuckerberg's dog walker has been waiting in a studio sound booth for a week now.
The populace has been so successfully coached and beaten to a pulp that the source of interest-rate price fixing is not mentioned. That source is the Federal Reserve.
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Friday, July 13, 2012
Can Bernanke Force Banks to Lend by Halting Interest on Excess Reserves? / Interest-Rates / Credit Crisis 2012
By: Mike_Shedlock
Several readers have ask me to comment on a King World interview of Michael Pento.
Before I offer my comments on Pento's thoughts, let me say upfront that Eric King is a world-class interviewer. King lets his interviewees have their say, no matter what it is.
It is up to listeners to decide whether the message makes any sense or not. King merely wants the position to be well stated.
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Friday, July 13, 2012
Libor Interest Rate Rigging: The Tip of the Market Manipulation Iceberg / Interest-Rates / Market Manipulation
By: Rob_Kirby
GATA was born in the late 1990’s - primarily on the back of fundamental research by Frank Veneroso regarding Central Bank Gold Leasing. Veneroso’s intellectual curiosity was aroused after being fed detailed data re: gold leasing by the Bank of England’s Terry Smeeton.
Friday, July 13, 2012
Swiss Banking: Asymmetric Threats Mount? / Interest-Rates / Credit Crisis 2012
By: DK_Matai
Total client assets managed by Swiss banks stood at 5.3 trillion Swiss francs or 5,300 billion Swiss francs at the end of last year according to the latest data compiled by the Swiss Bankers Association (SBA), the apex body of banks in Switzerland. This includes 2,700 billion Swiss francs (51 per cent) of foreign client assets and the remainder 2,600 billion Swiss francs (49 per cent) of domestic client assets. The drop to 51 per cent of total foreign assets-under-management is the lowest recorded in four years. Titled “Banking in transition - Future prospects for banks in Switzerland”, the latest SBA study notes that the share of foreign client assets in the Swiss wealth management industry has fallen for four successive years: from 56% at the end of 2008 to 55% in 2009 to 52% in 2010 and 51% in 2011. The quantum of overseas assets under management at the end of 2008 stood at 3 trillion Swiss francs and this includes the value of securities held in client portfolios, fiduciary deposits, amounts due to clients in savings and investment accounts, and as also from time deposits.
Thursday, July 12, 2012
The Fed's Next Move / Interest-Rates / Central Banks
By: Michael_Pento
Spanish and Italian bond yields have now risen back up to the level they were before the EU Summit. We also learned recently that U.S. job growth remains anemic, producing just 80k net new jobs in June. The global manufacturing index dropped to 48.9, for the first time since 2009. And emerging market economies have seen their growth rates tumble, as the European economy sinks further into recession.
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Thursday, July 12, 2012
The Big Banks are Amateurs When It Comes to Manipulating Interest Rates / Interest-Rates / Market Manipulation
By: Washingtons_Blog
Who Are The Biggest Manipulators of All?
People are justifiably furious over the big banks’ manipulation of hundreds of trillions of dollars of assets. This violates the banks’ most central function: loaning money based upon the going rate.
Indeed, the Libor manipulation is so serious that even mainstream economists are starting to call for heads to roll.
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