Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Friday, November 13, 2015
The U.S. Shadow Interest Rate Casts Gloom / Interest-Rates / US Interest Rates
By: Peter_Schiff
Nearly 92% of economists surveyed this week by the Wall Street Journal expect that our eight-year experiment with unprecedented monetary easing from the Federal Reserve will come to an end at the next Fed meeting in December. Since we have had the monetary wind at our back for so many years, at least a few have begun to question our ability to make economic and financial gains against actual headwinds. But in reality, the tightening cycle that the forecasters are waiting for actually started last year. Sadly, the markets and the economy are already showing an inability to handle it.
Thursday, November 12, 2015
Another Day Older and Deeper in Debt / Interest-Rates / Global Debt Crisis 2015
By: DeviantInvestor
Debt overwhelms most people in debt based fiat currency economies (US, UK, Europe, and others). Credit cards, auto loans, student loans, mortgages, and more …
Debt overwhelms most governments in debt based fiat currency economies. They are in debt because governments spend more than their revenues, which is a truly simple concept. However, don’t expect fiscal sanity to return anytime soon.
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Wednesday, November 11, 2015
Japanese Bonds Yield of Dreams? / Interest-Rates / Japanese Interest Rates
By: EWI
Why Japan's long-battered bond market may be gearing up for a comeback
Saber-tooth tiger. Wooly mammoth. Japanese government issued bonds?
Well it's happened. After years of enduring an unrelenting bear market (marked by plunging yields and rising prices) -- the long-battered Japanese government bond has made it on to the endangered financial species list.
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Tuesday, November 10, 2015
10-year US Treasury Note / Interest-Rates / US Bonds
By: Ed_Carlson
The rate on the 10-year US Treasury Note (ticker symbol TNX) had its best week since June last week with a gain of 8.46% to close at 23.33. It even printed an engulfing bullish candlestick on Friday.
Most of the week’s gain came on Friday’s strong non-farm payroll report. The breakout from the June bear trendline would seem to open the door for a return to the June high near 24.75 but…
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Monday, November 09, 2015
The War on Cash is Real / Interest-Rates / Central Banks
By: Graham_Summers
Stocks have rallied over the last 10 days in part by ECB President Mario Draghi’s statement that if push comes to shove, the ECB will push interest rates even further into negative territory (NIRP).
This represents just another round in the War on Cash, first implemented by the Central Banks in 2008.
It’s a little known fact that the cause for the gut-wrenching collapsing in late September-October 2008 was due to a significant portion of investors trying to move their money out of money market funds.
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Monday, November 09, 2015
Western Central Banks Playing with Hyper Inflationary Fire / Interest-Rates / Central Banks
By: Mario_Innecco
There are various examples in history of when national currencies have been debased so much that confidence in those currencies have been lost to such an extent that the nominal value of hard assets and productive assets in those currencies have gone up in a parabolic fashion. The grandaddy of currency debasement was the reichsmark during the Weimar Republic period in the early 1920s Germany. There are present day examples of currency debasement and rising local stock prices like Argentina and Venezuela but we will focus on the German example.
Saturday, November 07, 2015
US Dollar Surges, December Rate Hike Odds Soar Following Strong Jobs Report / Interest-Rates / US Interest Rates
By: Mike_Shedlock
Following today's jobs report the odds of a December rate hike approached 70% and the US dollar index surged.
Friday, November 06, 2015
Bill Gross: '100% Chance' Fed will Raise U.S. Interest Rates in December / Interest-Rates / US Interest Rates
By: Bloomberg
Bill Gross of Janus Capital spoke with Bloomberg's Tom Keene and Michael McKee on Bloomberg Radio and Television this morning to respond to today's jobs report.
Gross said there is a "100 percent chance" the Fed will raise interest rates in December after jobs surged. "They're ready to go." He said: "100 percent that they go in December and then try and tamp it down with mild, gradual language that will keep the dollar from strengthening even further."
On dollar strength, Gross said: "I think the Fed fears it...They took it out of their statement last month. But prior to that, they were cognizant of the fact that a very strong dollar has negative implications for emerging markets... It's certainly a negative for the global financial system because there are many bets and much dollar denominated debt in terms of emerging market corporations and sovereigns will be impacted by this."
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Friday, November 06, 2015
Worlds Largest Debtor Ever Raises U.S. ‘Debt Ceiling’…Again / Interest-Rates / US Debt
By: GoldCore
The US government has once again agreed to increase it’s so-called debt “ceiling” – this time from $18.5 trillion to $20 trillion. The so-called debt ceiling is recognized industry-wide as a complete misnomer.
Thursday, November 05, 2015
The Bank of England Keeps Interest Rates at 321-Year Lows / Interest-Rates / UK Interest Rates
By: Mario_Innecco
We hear constantly from the U.K. government and mainstream publications like the Financial Times that the economy of Great Britain is recovering strongly and that the labour market is robust so it is probably surprising for many people that in spite of the strong growth in the U.K. economy that the Bank of England has kept its base rate at 0.5%. This almost zero interest rate has been kept since March 5th, 2009 when the MPC or Monetary Policy Committee cut the base rate from 1% to 0.5% and at the time it was understandable as the U.K. financial system was on the brink of a total meltdown and the U.K. government had to write a cheque and issue loan guarantees for £500 billion to bail out the big banks.
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Tuesday, November 03, 2015
QE's Creeping Communism / Interest-Rates / Quantitative Easing
By: Peter_Schiff
Most economists and investors readily acknowledge that the current period of central bank activism, characterized by extended bouts of quantitative easing and zero percent interest rates, is a newly-blazed trail in economic history. And while these policies strike some as counterintuitive, open-ended, and unimaginably expensive, most express comfort that our extremely educated, data-dependent, central bankers have a pretty good idea as to where the trail is going and how to keep the wagons together during the journey.
Monday, November 02, 2015
Global Fiscal and Monetary Madness / Interest-Rates / Quantitative Easing
By: Michael_Pento
Last week China’s central bank (the PBOC) cut borrowing costs for the sixth time in a year and eased the reserve requirement ratio (RRR) for the third time this year, in a desperate attempt to achieve the prescribed growth target of 7% off the back of ever-increasing credit issuance. The PBOC lowered the one-year benchmark bank lending rate by 25 basis points to 4.35%, the one-year benchmark deposit rate was also lowered by 25 basis points to 1.5%.
Friday, October 30, 2015
Fed’s US Debt Bomb and Interest Rates / Interest-Rates / US Debt
By: Zeal_LLC
With the Federal Reserve’s first rate-hike cycle in nearly a decade looming, traders are working overtime trying to divine its timing and impact on the markets. They are closely monitoring the same employment and inflation data the Fed will use to start tightening. But there’s another little-discussed concern for the Fed, the solvency of the US government. The Fed’s zero-interest-rate policy has spawned a grave US debt bomb.
Back in late 2008, the US stock markets suffered their first true stock panic since 1907. This once-in-a-century fear superstorm proved catastrophic. In a single month leading into October 2008, the flagship S&P 500 stock index plummeted 30.0%. Over 6/7ths of these losses happened in 2 weeks, a massive 25.9% cratering! That exceeded the threshold for a stock panic, which is a 20%+ plunge in a couple weeks.
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Tuesday, October 27, 2015
Fed Headed into Inflation Overdrive / Interest-Rates / US Federal Reserve Bank
By: Michael_Pento
Seven years of extraordinary fiscal and monetary stimuli are proving ineffective towards achieving the growth and inflation targets laid out by the Federal Reserve. The Consumer Price Index (CPI), the Producer Price Index (PPI) and Gross Domestic Product (GDP) have all failed to grow over 2%. This is because asset prices, at these unjustified and unsustainable levels, need massive and ever increasing amounts of QE (new money creation) to stave off the gravitational forces of deflation. Fittingly, it isn't much of a mystery that the major U.S. averages have gone nowhere since QE officially ended in October of 2014.
Friday, October 23, 2015
ECB Putting Federal Reserve in a Bad Spot / Interest-Rates / ECB Interest Rates
By: EconMatters
ECB Policy Press Conference
Friday, October 23, 2015
Europe Admits QE Has Failed, Promises More Of It / Interest-Rates / Quantitative Easing
By: John_Rubino
New Age monetary policy has begun to resemble the form of insanity in which a patient repeats the same behavior while expecting a different outcome.
Throughout the developed world, interest rates are at record lows and central banks continue to pump out newly-created currency. Yet growth remains tepid, inflation is nonexistent and debt of every type continues to mount. And instead of recognizing that somewhere in their guiding theory lurks a fatal flaw, governments and central banks just keep upping the ante. Today it was Europe, where central banks have been expanding their balance sheets (i.e. running the printing presses) aggressively…
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Wednesday, October 21, 2015
Insane “Trillion Dollar Platinum Coin” Option Ruled Out By U.S. Treasury To Avert New Debt Crisis / Interest-Rates / US Debt
By: GoldCore
The silly and somewhat insane uber Keynesian “Trillion Dollar Platinum Coin” appears to be now firmly off the table.
The US Congress has once again ruled out the possibility of issuing a “trillion dollar platinum coin” floated as a possible solution to the looming US Debt Crisis.
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Friday, October 16, 2015
Can the Fed Really Print Money? What Would Negative Interest Rates Do? / Interest-Rates / US Interest Rates
By: Mike_Shedlock
Most people believe the Fed can print money. Caught on tape, former Fed chair Ben Bernanke once admitted the Fed prints money.
However, in Hoisington's Third Quarter 2015 Review, economist Lacy Hunt makes the claim the Fed cannot print money. Let's take a look, emphasis mine.
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Thursday, October 15, 2015
What the 'Junk-Bond Crisis' Means for Muni Bonds / Interest-Rates / International Bond Market
By: DW
Dr. David Eifrig writes: It could happen next week... or next month...
Wednesday, October 14, 2015
US Interest Rate Hike Odds For March 2016 Fall Below 50% / Interest-Rates / US Interest Rates
By: Mike_Shedlock
3rd Quarter GDP Forecast Slips to 0.9%
Following today's retail and business sales reports, the Atlanta Fed GDPNow Forecast for third quarter GDP slipped 0.1 percentage points to 0.9%.
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