Category: US Bonds
The analysis published under this category are as follows.Friday, November 29, 2013
How to Find Safe Yields in an Interest Rate Sensitive World / Interest-Rates / US Bonds
While Mr. Bernanke's policies have taken a toll on seniors and savers, his mere mention of the word "taper" last spring did us all a favor. It sent interest rates rising, bond and stock prices tumbling, and in the days that followed, the Fed went into damage control—quite a lot of hubbub for something the Fed was only pondering. What happens when they announce they actually did something?
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Wednesday, November 20, 2013
How to Profit from Fed’s Easy Money Mistake by Shorting U.S. Treasury Bonds / Interest-Rates / US Bonds
Mohammad Zulfiqar writes: The Federal Reserve has been very accommodative. Its goals are very simple: it wants economic growth in the U.S. economy. As a result, the Federal Reserve is taking extraordinary measures, printing $85.0 billion a month and using it to buy U.S. bonds and mortgage-backed securities (MBS). The hope is that the money will go to the banks, which will lend it to consumers who then spend it, leading to economic growth.
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Sunday, November 17, 2013
U.S. Treasury Bond Markets Snapshot Update / Interest-Rates / US Bonds
Courtesy of Doug Short: What’s New: I’ve updated the charts below through today’s close. The yield on the 10-year note finished the week at 2.71%, which is 128 bps above its 1.43% all-time closing low on July 25th of last year but 13 bps below its interim closing high on September 5th.
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Friday, November 15, 2013
Keep Your Eye on Bonds / Interest-Rates / US Bonds
Last month, Americans were transfixed by the amateur theatrics undertaken by the Washington political establishment in connection with the debt ceiling crisis. The bad faith, poor tactics and wholesale avoidance of reality were offered by all players in very large doses. When the Republican leadership finally capitulated (thereby bringing down the curtain on the tawdry production), it soon became apparent that sound and fury had signified nothing except another exercise in can kicking. Public approval of Congress sank to the lowest level on record, and has only dissipated due to the unmitigated disaster of the Obamacare launch. But as bad as domestic approval has become, the behavior of the U.S. government has played far worse internationally.
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Sunday, November 03, 2013
U.S. Treasury Yields in Perspective / Interest-Rates / US Bonds
Courtesy of Doug Short: Let’s have a look at a long-term perspective on Treasury yields. The chart below shows the 10-Year Constant Maturity yield since 1962 along with the Federal Funds Rate (FFR) and inflation. The range has been astonishing. The stagflation that set in after the 1973 Oil Embargo was finally ended after Paul Volcker raised the FFR to 20.06%.
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Thursday, October 03, 2013
U.S. Interest Rates - Three Days Away From a Market Decision / Interest-Rates / US Bonds
By Monday night, October 7th 2013, the first chart below will very likely show a resolution. Technically, the probabilities favour an upside break of the 10 year yield. Note how the MACD histograms have been rising
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Tuesday, October 01, 2013
Looking for a Bounce in the “ten-year” U.S. Treasury Note / Interest-Rates / US Bonds
TNX is the symbol for the interest rate on the ten-year, US Treasury note. One observation which has kept me from getting bullish about TNX (despite the break out above the long-term trendline) is the level of the red line in the chart below. The red line represents the distance between TNX and its 200 day moving average. Since last July it has far exceeded its highs at past tops in TNX (which is probably long-term bullish) but, not only did that level appear stretched, but it failed to confirm the higher highs in TNX seen in August and September.
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Wednesday, September 25, 2013
Hidden Panic at the U.S. Fed as Flash Trading Hits Treasury Bonds / Interest-Rates / US Bonds
The USTreasury Bond market breakdown is in progress, all part of the general USDollar global rejection that is taking the world by storm. Of course, residents inside the US Dome do not notice, since they only perceive it as the native currency. From conversations with common folk, discussions with investor types, and general observations for over 20 years, the Jackass belief is that only 5% to 10% of Americans are aware that the USDollar serves as a global financial instrument in contracts, the basis for trade settlement (mostly crude oil), with some extremely important consequences. A major development has begun, much like a metabolic life support system in concert with the Interest Rate Swap derivative contract. For two years or more, the USTreasury Bond market has been deeply dependent upon artificial demand derived from the derivatives. Entire bond rallies have been fabricated with 50:1 leverage, fully supported by the financial network propaganda. Without derivative flying buttress support, the giant USTBond Tower would have collapsed a couple of years ago. Now a new support system has been begun, a dangerous musical chairs long entrenched in the stock market. It has entered the bond market finally. Flash Trading!!
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Monday, September 23, 2013
Madoff’s Ponzi Scheme Looks Like a Joke Compared to U.S. Treasury Bonds / Interest-Rates / US Bonds
Michael Lombardi writes: The “Bernie” Madoff name became famous while the stock market was falling during the credit and financial crisis. He was responsible for running one of the biggest Ponzi schemes in U.S. history—if I recall correctly, it was a $65.0-billion scheme. But as the scam got bigger, Madoff couldn’t go on. He was caught, prosecuted, and sentenced to more than 100 years in jail.
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Wednesday, September 18, 2013
US Treasury Bonds Corrective Rally Could Forecast / Interest-Rates / US Bonds
I hate to say this again, but major pairs on the FX market place still have a very unclear price action and no direction at all on the intra-day basis. It’s probably “calm before the storm” ahead of highly anticipated FOMC press conference of the last few years, when Bernanke could announce tapering. Statement will be out at 18:00GMT and press conference will be scheduled 30 minutes later. So until then we may not see a lot of price action today.
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Friday, September 13, 2013
Which Way Will the US Federal Reserve Jump? / Interest-Rates / US Bonds
Adam Green writes: The next 2-day monthly conference meeting of the US Federal Reserve is scheduled to begin on Tuesday, 17th September. Speculation has now been rampant for months about when the Fed will commence tapering its influential stimulus policies and what impact such actions would have on the financial markets. This article sets out to define the most likely possibilities. Read full article... Read full article...
Wednesday, September 11, 2013
Bond Markets Are No Longer Safe Havens From Stock Market Risks / Interest-Rates / US Bonds
Bond yields spike to a 2-year high
Two months ago, Federal Reserve Chairman Ben Bernanke said he was puzzled by the upward surge in Treasury yields. And bond yields are even higher now, reaching a two-year high on August 15.
But the rise in bond yields - and the concomitant drop in bond prices since they move inversely to yields - is no surprise to EWI analysts. EWI's June 2012 Special Report on bonds noted: "If rates do begin to rise as we expect, most observers will probably be fooled. Bulls on the economy may take the new trend as a sign of economic expansion."
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Tuesday, September 03, 2013
Bond Markets Offer No Protection From Stock Market Risk / Interest-Rates / US Bonds
Bond yields spike to a 2-year high
Two months ago, Federal Reserve Chairman Ben Bernanke said he was puzzled by the upward surge in Treasury yields. And bond yields are even higher now, reaching a two-year high on August 15.
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Wednesday, August 28, 2013
Bond Markets No Safe Haven from Stock Market Risk / Stock-Markets / US Bonds
Bond yields spike to a 2-year high
Two months ago, Federal Reserve Chairman Ben Bernanke said he was puzzled by the upward surge in Treasury yields. And bond yields are even higher now, reaching a two-year high on August 15.
Monday, August 26, 2013
Will the Last Person to Exit the Treasury Market Please Turn Out the Lights / Interest-Rates / US Bonds
Wall Street and Washington love to spread fables that facilitate feelings of bliss among the investing public. For example, recall in 2005 when they inculcated to consumers the notion that home prices have never, and will never, fall on a national basis. We all know how that story turned out. Along with their belief that real estate prices couldn't fall, is one of their favorite conciliatory mantras that still exists today. Namely, that foreign investors have no choice but to perpetually support the U.S. debt market at any price and at any yield.
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Friday, August 23, 2013
Shorting U.S. Treasury Bonds, Your No1 Choice for Big Gains / Interest-Rates / US Bonds
Keith Fitz-Gerald writes: As I'm writing this, halfway through Wednesday's session, stocks are in danger of closing in the red for a fifth straight day. And this is all you'll hear about today.
Yet bonds are telling you the real story.
In fact, at this point, they are the next best thing to the Holy Grail if you've got the right perspective and understand what's happening.
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Friday, August 23, 2013
Major Bond Market Top, Dangerous Myths About Rising Yields / Interest-Rates / US Bonds
Myth 1 of 3: Bond Yields Are Rising Due to the Fed's Insinuation at Tapering
Editor's note: The following article is the first in a series of three, reprinted with permission from market-leading financial forecasting firm Elliott Wave International. To read the full three-part report now, follow this link and download it for free
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Wednesday, August 21, 2013
Dangerous Myths About Rising U.S. Treasury Bond Yields / Interest-Rates / US Bonds
Myth 1 of 3: Bond Yields Are Rising Due to the Fed's Insinuation at Tapering
Editor's note: The following article is the first in a series of three, reprinted with permission from market-leading financial forecasting firm Elliott Wave International. To read the full three-part report now, follow this link and download it for free
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Friday, August 16, 2013
Is the U.S. 30 year Treasury Bond Market Top Finally In? / Interest-Rates / US Bonds
After hitting my long awaited target, the reversal we have seen over the past 12 months strongly suggests a multi-decade top is now in for bonds.
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Friday, August 02, 2013
Detroit Bankruptcy Could Shake Muni Bonds to the Core / Interest-Rates / US Bonds
Shah Gilani writes: Detroit went bankrupt, but so what?
Its own decades-long gross political mismanagement, corruption and incompetence pushed the city over the cliff into bankruptcy.
Why should we care?
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