Category: US Bonds
The analysis published under this category are as follows.
Wednesday, July 24, 2013
After 32 Years Bond Bull Market is Officially Dead / Interest-Rates / US Bonds
By: Money_Morning
Martin Hutchinson writes: I'm announcing that the 32-year bull market in bonds is officially dead. Be prepared for the consequences from rising interest rates in 2014. They could be catastrophic for bond market investors.
Higher bond rates look enticing, like they'll provide you with more income. But as interest rates move up, the value of bonds goes down. It's an inverse relationship. The value of your fixed-income portfolio could be devastated if rates rise rapidly beginning next year. Start protecting your portfolio today.
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Tuesday, July 23, 2013
What the Detroit Bankruptcy Means for Municipal Bonds / Interest-Rates / US Bonds
By: Money_Morning
David Zeiler writes: You can't blame investors in municipal bonds for being worried about how the Detroit bankruptcy will affect the muni market - it's by a factor of four the largest municipal bankruptcy in U.S. history.
Last Thursday Detroit filed for Chapter 9 bankruptcy to seek relief for $18 billion in debt obligations, a debt driven primarily by years of soaring public pension obligations and shrinking tax revenue.
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Thursday, July 18, 2013
How to Succeed in the Low-Yield Inflationary Bond Market Matrix / Interest-Rates / US Bonds
By: Money_Morning
Robert Hsu writes: In the 1999 sci-fi film, "The Matrix," the mentor Morpheus turns to the protagonist Neo and says, "Do you think that's air you're breathing now?"
The quote has become somewhat of a modern classic movie line, as the words serve to enlighten Neo that all is not what it seems in the world he perceives.
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Wednesday, July 17, 2013
U.S. Treasury Bond Market Mirror Cracks / Interest-Rates / US Bonds
By: John_Mauldin
Michael Lewitt is one of my favorite credit analysts. If I want to know what is happening in the credit markets, one of my first calls is to Michael. He has been doing deep dives into some rather esoteric markets as well as traditional bonds over the course of his career, and he really understands what is happening under the surface.
In the latest issue of The Credit Strategist, which Michael has given me special permission to pass on to you as today's Outside the Box, he gets our attention right off the bat by comparing the recent big move in the benchmark 10-year Treasury yield to a comparable two-month move in 1994, a year that, as he says, was "generally viewed as Armageddon for bond investors." But in percentage terms, the 1994 move was only 20% over that period while the recent move was 40%.
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Wednesday, July 17, 2013
Municipal Bonds: While Others Bail, It Might Be a Good Time to Buy / Interest-Rates / US Bonds
By: Money_Morning
Gary Gately writes: Investors have been bailing out of beleaguered municipal bonds in droves, worried that higher interest rates will drive down the prices of the bonds.
About two weeks ago, weekly net outflows from muni bond mutual funds and ETFs soared to a record $4.53 billion, Lipper data shows.
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Monday, July 15, 2013
Wading Through the Bond Market Bloodbath / Interest-Rates / US Bonds
By: Money_Morning
Robert Hsu writes: If you're an investor who has been following a traditional income-style portfolio allocation that includes a lot of U.S. Treasury bonds, then you are likely having a very uncomfortable summer.
Indeed, since the Federal Reserve's "taper" narrative was first introduced to Wall Street by Chairman Ben Bernanke on May 22, there's been a virtual bloodbath in the bond market.
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Friday, July 12, 2013
How to Play the U.S. Treasury Bond Market Rout / Interest-Rates / US Bonds
By: Investment_U
Alexander Green writes: This week Goldman Sachs forecast that 10-year Treasury yields would reach 3% by the end of this year and 4% by 2016. Of course, Goldman doesn’t have a crystal ball, and neither do we.
But the bloom is clearly off the rose. Ben Bernanke’s announcement last month that the Fed intends to end its $85 billion a month bond-buying program by the middle of next year has turned the $11.9 trillion U.S. Treasury bond market upside down. The 10-year yield has soared from 1.76% at the end of 2012 to a recent high of 2.75%.
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Tuesday, July 09, 2013
Meredith Whitney on Muni Bonds and Red State-Blue State Migration / Interest-Rates / US Bonds
By: Money_Morning
Frank Marchant writes: In 2010 Meredith Whitney made an earth shattering statement during a CBS's "60 Minutes" interview that rocked the municipal bond investment world.
"There is not a doubt in my mind that you will see a spate of municipal-bond defaults,"said Meredith Whitney on Dec 19. She continued, "You could see 50 sizable defaults, and 50 to 100 sizeable defaults, more. This will amount to hundreds of billions of dollars' worth of defaults."
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Wednesday, July 03, 2013
How to Take Advantage of the U.S. Bond Market Panic / Interest-Rates / US Bonds
By: Profit_Confidential
Michael Lombardi writes: Investors beware: the bond market is treading in very rough waters. The sell-off we have seen of U.S. bonds might just lead to more troubles ahead for the bond market. Just take a look at the chart below:
Monday, July 01, 2013
U.S. 30 Year Treasury Bonds – A Rally To Sell? / Interest-Rates / US Bonds
By: Michael_Noonan
Trading opportunities arise every day, however, quality trades that offer an edge do not.
We use developing market activity, as depicted in charts, to find trade potentials with a
defined limited risk and greater reward potential. 30 Year Bonds appear to be advertising
weakness and a shorting opportunity.
When seeking trades, we use the “If, Then,” approach. IF the market does this, THEN we do that. The latter is acted upon only if the former requirements are met. Following this scenario, there is no guesswork or predicting involved, and the emotional element is not in play, either. Discipline is required, but it leads to more profitable trading potentials, so it is worth the effort.
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Friday, June 21, 2013
U.S. Treasury Bond Market Implosion Has Officially Begun / Interest-Rates / US Bonds
By: Graham_Summers
The QE Infinite parade officially ended yesterday when Bernanke hinted at tapering QE later this year or in mid-2014.
I first warned Private Wealth Advisory subscribers about this in mid-May writing,
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Tuesday, June 18, 2013
What the U.S. Treasury Bond Market Says About Likelihood of Fed QE Tapering / Interest-Rates / US Bonds
By: Graham_Summers
The big question on every investors’ lips today and tomorrow is: “will the Fed announce or hint at tapering QE?”
Over the last two years, one of the biggest tools in the Fed’s arsenal has been verbal intervention: the act of saying something in order to push the market up. Time and again 2011-2012 saw various Fed Presidents appear at key points to push the market higher by promising more action or stimulus.
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Tuesday, June 18, 2013
U.S. Treasury Bond Bubble Red Alert, QE Taper Talk Puts Bonds at Risk – Where to Hide? / Interest-Rates / US Bonds
By: Axel_Merk
Induced by “taper talk,” volatility in the bond market has been surging of late. Is there a bond bubble? Is it bursting? And if so, what are investors to do, as complacency might be financially hazardous.
Tuesday, June 18, 2013
U.S. Treasury Bond Market Sell Signal / Interest-Rates / US Bonds
By: Brian_Bloom
On reflection, the two weekly charts below should have been included in the equity market overview that I sent out yesterday (http://www.beyondneanderthal.com/equity-market-risks-are-rising-3/ ).
A significant “sell” signal has been given on the weekly bond price chart.
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Tuesday, June 11, 2013
U.S. Bond Market - If There’s a Time to Panic… It’s Now / Interest-Rates / US Bonds
By: Investment_U
Alexander Green writes: I received several letters from readers concerning my recent column opining that the 30-year bull market in bonds is over.
Some asked if it was really that big a deal that bonds fell by 2% in May. The answer is yes. It is a big deal, especially when 10-year Treasurys yielded just 1.7% a month ago. That slight sell-off erased more than a year’s worth of interest.
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Wednesday, June 05, 2013
U.S. Treasury Bonds Will be Returned to Sender / Interest-Rates / US Bonds
By: Jim_Willie_CB
The USTreasury Bond is the primary vehicle for the USDollar. Nations do not hold the USDollar in raw currency form, except for the crime syndicates. They hold them in USTBond form, in order to gather some interest income. In the last few years, not few months, but years, the interest has been next to nothing, and surely far less than what it should be, given the risk and the nasty undermine to value by the monetary action by the central bank itself. Paltry interest aside, with all its unfortunate deterrent toward investment in USGovt debt, the USFed has been kicking out the value pillars for a very long time, far longer than the limit imposed loosely by Sir Alan Greenspasm of six to eight months. With the cost of money near zero, all markets are distorted, all assets improperly priced, and Gold marked for illicit ambush on a regular basis by the fascists.
Friday, May 31, 2013
Is the US Treasury Bond Market Turning? / Interest-Rates / US Bonds
By: Simit_Patel
Perhaps the biggest macroeconomic event to watch for is the potential that the US Treasury bond market is turning south -- and that bond yields will rise significantly. This has many implications for the global economy, as capital flowing out of the US Treasury bond market -- the largest non-currency financial market -- will drastically impact values in other markets.
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Friday, May 31, 2013
Why U.S. Treasury Bonds Are Still the Worst Investment / Interest-Rates / US Bonds
By: InvestmentContrarian
Sasha Cekerevac writes: Savers have had a difficult time finding suitable places to allocate capital from which they can derive income. I’ve previously warned against allocating new funds to the investment strategy of U.S. Treasuries, as this would likely be the worst investment over the next decade.
Now, it appears that investors are increasingly coming to the same conclusion that I stated several months ago in these pages: U.S. Treasuries are set for a significant drop in price.
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Friday, May 17, 2013
The Biggest Financial Bubble About to Burst! / Interest-Rates / US Bonds
By: DeepCaster_LLC
“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system. The system remains still in the throes and aftershocks of the 2008 panic and the near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and federal government. Further panic is possible and hyperinflation is inevitable.
“The economic and systemic solvency crises of the last eight years continue. There never was an actual recovery following the economic downturn that began in 2006 and collapsed into 2008 and 2009. What followed was a protracted period of business stagnation that began to turn down anew in second- and third-quarter 2012. The official recovery seen in GDP has been a statistical illusion generated by the use of understated inflation in calculating key economic series (see Public Comment on Inflation). Nonetheless, given the nature of official reporting, the renewed downturn likely will gain recognition as the second-dip in a double- or multiple-dip recession.
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Wednesday, May 15, 2013
Warning: How the Bond Market Bubble Will Secretly Sabotage Your Retirement / Interest-Rates / US Bonds
By: Money_Morning
David Zeiler writes: A tool intended to make retirement investing easier may result in many Americans taking an unwitting hit to their portfolios when the bond bubble finally pops.
We're talking about target-date funds, designed to be "set it and forget it"-style retirement vehicles for people who don't want to bother with actively managing a portfolio.
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