Category: US Bonds
The analysis published under this category are as follows.Tuesday, June 02, 2015
The Coming Bond Market Collapse: Make a Killing – While Everyone Else Gets Killed / Interest-Rates / US Bonds
MoneyMorning.com Shah Gilani writes: We’re hurtling toward the biggest bond bubble the world has ever seen.
It’s going to start leaking.
Then it’s going to pop.
Today I’m going to tell you what to look for – because I’m all over this.
I’m also going to share four handpicked recommendations that will soar when the bond bubble bursts.
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Thursday, May 28, 2015
We're Now Frighteningly Vulnerable to a Bond Market Crash / Interest-Rates / US Bonds
MoneyMorning.com Shah Gilani writes: Water doesn’t flow uphill.
It’s a lesson in physics so basic that even schoolkids know it.
In fact, everyone knows it…
Everyone except – apparently – the world’s central bankers.
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Friday, May 22, 2015
Inaccurate Economic Statistics and The Threat to the Bond Market / Interest-Rates / US Bonds
Statistics have become very misleading: in particular we are being badly misled into believing that the US is teetering on the edge of price deflation, because the US official rate of inflation is barely positive, a level that US bonds and therefore all other financial markets have priced in without accepting it is actually significantly higher.
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Monday, May 18, 2015
Bond Market Chaos Is Spinning Out of Control / Interest-Rates / US Bonds
MoneyMorning.com Michael Lewitt writes: A few weeks ago, the man formerly known as the Bond King, Bill Gross, tweeted that shorting German bunds would be the trade of the century.
I was gratified to see that he was reading my mind, as readers of my Credit Strategist newsletter already know.
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Friday, May 15, 2015
Double Black Diamond - What a Bond Bear Market Looks Like / Interest-Rates / US Bonds
I was a halfway decent skier when I was a kid. Good enough that I could navigate every trail on the mountain except for one or two. Good enough that I could do the double black diamonds.
My grandfather built a cabin on the access road to Sugarbush, Vermont, in the ‘80s and sold it in the ‘90s. Makes me weep when I think what that thing would be worth now. I wasn’t kidding when I said I come from a financially unsophisticated family.
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Wednesday, May 13, 2015
Debt Bomb - Big Volatility Shakes Bond Market Investors / Interest-Rates / US Bonds
Is the debt bomb about to go off?
Editor's note: You'll find the text version of the story below the video.
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Tuesday, May 12, 2015
U.S. Bond Bear Market Still Underway? / Interest-Rates / US Bonds
The has been lots of talk lately of a Bond market top. This type of talk has actually been going on, and off, for a few years. To our surprise we find we have not written a Bond specific report in nearly three years: https://caldaro.wordpress.com/2012/07/02/bonds-and-long-term-rates/. In that report we detailed why we expected Bond yields to be bottoming in 2012. The 10YR did make a new yield low that year at 1.39%, and it has remained above that low ever since – currently 2.27%. The 30YR also made a new low yield that year at 2.45%. It then rose to 3.98% in 2014, but renewed its decline into a lower low at 2.23% in February of this year – currently 3.04%.
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Tuesday, May 05, 2015
TLT Breaks a Head & Shoulders Neckline / Interest-Rates / US Bonds
TLT just crossed the neckline of its Head & Shoulders formation, suggesting a very steep decline to 107.76.Read full article... Read full article...
Monday, May 04, 2015
U.S. Long Bond, an Historic Trading Opportunity? / Interest-Rates / US Bonds
This past week saw a huge swing in interest rates at the long end of the curve with the long bond in particular getting knocked for a loop.
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Tuesday, April 28, 2015
Rush Hour! A Bond Market Traffic Jam / Interest-Rates / US Bonds
Rodney Johnson writes: In the early 1990s I was a young bond trader with a Wall Street firm.
The business was not exactly like the movies, but it wasn’t too far off, either. We got to work by 7:00 a.m., set the strategy for the day — “Are we buying more or selling more?” — and then got on the phones.
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Monday, April 06, 2015
3 Sigma Extremes In the U.S. Treasury Bond Market / Interest-Rates / US Bonds
US T-Bond futures closed Friday, March 27 up nearly 12% from the February close. That was the 3rd largest monthly percent move since 1977 when my data begins and created a 3.61 standard deviation change. This is a huge move. What does it mean?
The US T-Bond market peaked on March 25 at an all-time high over 165, up from about 75 in 1990. Bonds move inversely with yields, so yields have dropped to their lowest level ever. This is not surprising because central banks have been monetizing sovereign debt, buying bonds, and supporting the bond and stock markets. Several $Trillion in European sovereign debt currently “pays” negative interest – an extreme condition. The Bank of Japan has aggressively purchased Japanese government bonds as well as Japanese stocks – another extreme example of a bond bubble.
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Friday, March 13, 2015
Watch As All the Bond Market Rats Jump Ship before FOMC Meeting / Interest-Rates / US Bonds
Short-Term Market Flipping
Markets are just hilarious these days, there is no meaningful investments in the era of High Frequency Trading, Spoofing Algos, Pump & Dump IPO Schemes and ZIRP free money to borrow at the drop of a hat.
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Friday, March 13, 2015
The Crazy Man's Guide to the U.S.Bond Market / Interest-Rates / US Bonds
I invite you to inspect the following chart of 10-year interest rates in the US.
If you don’t have a lot of experience with these things, let me clue you in: This is a very scary-looking chart. It’s a classic head-and-shoulders bottom in yields.
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Wednesday, March 11, 2015
Six Days Until U.S. Bond Market Crash Begins / Interest-Rates / US Bonds
Run for the Exits
Early on Tuesday morning, realizing this was going to be a robust selloff in equities, the ‘smart money’, i.e., the big banks, investments banks, hedge funds and the like, ran to the old staple of buying bonds hand over fist with little regard for the yield they are getting paid for stepping in front of the freight train of rate rises coming down the tracks.
Monday, March 09, 2015
U.S. 30 Year US T-Bonds Price Forecast / Interest-Rates / US Bonds
There has been quite a bit of chatter recently about interest rates in the US with many proclaiming interest rates are now headed up. Are these voices right? Having just analysed the technicals of the 30 Year US Treasury Bonds, it is my considered opinion that they are both right and wrong.
Keeping in mind that interest rates go up as bond prices go down, let’s investigate the price charts and we’ll mix it up by starting with the monthly chart first.
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Saturday, February 14, 2015
U.S. Treasury Long Bond Breakdown / Interest-Rates / US Bonds
Well, here we go again. I do not know how many times over the past year or so I have noted what looked like a chart breakdown in the US long bond. By that I specifically mean a close BELOW the 50 day moving average. Generally, that will get technicians to sit up and take notice and begin to approach a market from the short side. Each time I have noted this however, the bonds have done a flip-a-roo and back up they have gone continuing the bull streak.
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Saturday, February 07, 2015
The Party Is Likely Over for U.S. Treasury Bonds / Interest-Rates / US Bonds
U.S. treasury bonds defied the experts last year.
The consensus was that once the Fed began dialing back its massive bond-buying stimulus program last January, bond prices would have to begin plunging. With the stock market so clearly in an ongoing bull market, why would anyone but the Fed buy bonds with their yields at record lows, providing almost no income? The lack of interest in bonds was obvious from their plunge in 2013 even when the Fed was aggressively engaged in its QE bond buying.
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Saturday, February 07, 2015
U.S. Treasury Bond Yields Soaring ... But not for long / Interest-Rates / US Bonds
It’s time to rethink my outlook (Elliott Wave structure) in Treasuries. I had been concerned that the decline in TNX fell short of my projections. Then it hit me as I was writing about XJY and how high it might go in a panic stock decline. With gold out of the picture, it appears that the only other major asset that might be viewed as a safe haven would be US Treasuries. You can see that I have changed the Elliott Wave structure to reflect that view.
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Saturday, January 31, 2015
U.S. Bond Market Has Reached Tulip Bubble Proportions / Interest-Rates / US Bonds
Fed Officials Trying to Send Signals to the Bond Market
James Bullard on Friday noted that the Bond Market was far too dovish in relation to where the Fed is in regard to raising rates in June, and this might be the understatement of the year so far. For example the U.S. 2-Year Bond Yield is 0.45 or 45 basis points, think about this for a moment. Even if the Fed fund`s rate finishes the year at 50 basis points which is well below the Fed`s most conservative forecasts, and we use a conservative annual inflation rate of 1% (I know oil has dropped but there are more inflation categories than just the energy component). Moreover, the overall annual inflation rate is well above 1% right now, and you factor in that this bond is paying a 2-year risk premium for tying up one`s capital with all kinds of inflation risks over that 2-year time frame, this has to be the stupidest investment of all time.
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Tuesday, January 27, 2015
Why 2014's Big Investing Winner Is Still Winning in 2015 / Interest-Rates / US Bonds
Brett Eversole writes: The BIG winner of 2014 will likely surprise you.
U.S. stocks increased a strong 14% last year. But another, much less interesting, asset crushed stocks. It soared 27%. And still, no one is paying attention.
This same boring asset is up 7% so far this year. And last year's big gains could continue throughout 2015.
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