Category: US Bonds
The analysis published under this category are as follows.
Friday, January 20, 2012
Marc Faber: Still Predicting U.S. Treasury Bond Bubble Will Burst / Interest-Rates / US Bonds
By: Bloomberg
Marc Faber, publisher of the Gloom, Boom and Doom report, spoke to Bloomberg Television's Sara Eisen and Erik Schatzker and said that investors have created a "bubble" in the "highest-quality" government bonds and should move to equities.
Faber said, "People feel so insecure that they say, 'I'd rather be in a Treasury in America with almost no yield or in Germany with negative yield and get my money back.' But it doesn't make them a good buy in the long term."
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Monday, January 16, 2012
Marc Faber - U.S. Treasury Bonds Should be Rated at Junk / Interest-Rates / US Bonds
By: Videos
Marc Faber - US bonds should be rated junk status on CNBC during the Euro-zone credit ratings downgrades announcements.
Saturday, January 07, 2012
Foreign Central Banks Dumping U.S. Treasury Bonds, Treasure From Treasuries / Interest-Rates / US Bonds
By: DeepCaster_LLC
“Holdings of U.S. Treasurys (sic) by foreign central banks has fallen by a record amount over the past four weeks according to the latest Federal Reserve data.
“The net $69 billion drop in Treasury holdings registered at the Fed by foreign official institutions comes as benchmark yields ended 2011 near record low levels…
“The decline in foreign holdings of Treasurys (sic) in recent weeks has not resulted in higher yields and lower prices because other investors have sought the safety of US debt.”
“Foreign Central Banks Cut Treasury Holdings by Record”
The Financial Times, www.cnbc.com, 12/30/11
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Saturday, December 31, 2011
2011: The Year 60 Minutes Misled Americans About Municipal Bonds / Interest-Rates / US Bonds
By: Janet_Tavakoli
In previous posts, I've mentioned serious fiscal problems that need to be addressed at state and local levels. This varies by region and some issues are potentially solvable.
I live in Illinois, which is ground zero for fraud, corruption, underfunded pension funds and general fiscal mismanagement. It's an example of one of the worst fiscal messes in the United States. This year Illinois hiked personal income taxes from 3% to 5%, and increased corporate taxes. We'll be slammed with hidden tax increases in utilities, purchases, and more. When now Mayor Rahm Emanuel left his post as White House Chief of Staff to run his election, the Chicago mayoral race centered partly around steps, including budget cuts, needed to solve Chicago's serious fiscal issues: See "Third Word America: Drowning in Debt and Chocking on Lies," Huffington Post, June 24, 2011, and 'Fast-Tracking to Anarchy;" August 25, 2010.
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Saturday, December 03, 2011
It’s Time To Dump U.S. Treasury Bonds / Interest-Rates / US Bonds
By: Sy_Harding
First let’s make sure we understand the basics of bonds.
Bonds are a form of debt. When a company or a government needs to borrow money it can borrow from banks and pay interest on the loan, or it can borrow from investors by issuing bonds and paying interest on the bonds.
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Wednesday, November 30, 2011
Debunking the Myth that China is Selling U.S. Treasury Securities / Politics / US Bonds
By: Mike_Stathis
For a couple of years now, the extremists, gold bugs, perpetual doomers and others who know more about marketing than economics and investments have used numerous scare tactics as a manner by which to manipulate gold. These individuals like to mention gold manipulation by banks to explain the selloff, but never mention that the manipulation of gold by banks is a normal situation.
In contrast, they never admit that they are manipulation gold pricing through the use of propaganda, scare tactics, myths and even bold-faced lies. This later type of manipulation borders on securities fraud. It is an issue that the SEC must address.
Regardless which one of these prophets of doom you give your attention to, you are likely to hear 10% fact and 90% fiction; if you’re lucky.
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Tuesday, November 08, 2011
What Does Wave Theory Say About U.S. Treasuries? / Interest-Rates / US Bonds
By: Glenn_Neely
This article is Part 3 of a 3-part interview series with Glenn Neely, founder and president of NEoWave Institute. In these 3 interviews, conducted by blogger Bud Fox, Glenn Neely looks ahead at 3 specific trading markets (Euro, Gold, and Treasuries) through the lens of Wave structure and explores what Wave theory tells us about the next 5-10 years.
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Monday, October 31, 2011
U.S. Treasury Bond Weakness in Synch With Stocks / Interest-Rates / US Bonds
By: Mike_Paulenoff
The ProShares UltraShort 20+ Year Treasury ETF (TBT) remains directly related to the direction of the stock indices. The correction off of last Thursday's high in the emini S&P 500 has been accompanied by a correction in the TBT.
This reflects a flight out of risk into the relative safety of the bond market, which in turn compromises the price structure of the TBT, as it represents longer-term rates.
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Wednesday, October 26, 2011
Foreigners Losing Confidence in Holding U.S. Treasury and Agency Debt / Interest-Rates / US Bonds
By: Casey_Research
Bud Conrad, Casey Research writes: Foreign central banks buy US Treasury and Agency debt through accounts at the Federal Reserve, where it is held in custody. Without these central banks buying our debt, the US federal government would have to find a new source of funds or the result could be higher interest rates. Looking at the data on a monthly basis (and then multiplied by 12 to give the annual rate), here is the dramatic picture of how foreign central-bank purchases of our debt have shifted, from buying $500 billion to selling off $1 trillion.
Wednesday, October 26, 2011
The Treasury Investment That's WAY Better Than Treasury Inflation Protected Securities (TIPS) / Interest-Rates / US Bonds
By: Money_Morning
Martin Hutchinson writes:
I've made no secret of my aversion to Treasury bonds. Yields right now are irrationally low, and thus do not accurately reflect U.S. credit risk.
And since inflation is already running higher than bond yields - and is likely to rise even further - Treasuries offer an inadequate return at best, and at worst, a capital loss if sold before maturity.
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Wednesday, October 19, 2011
The Day the U.S. Treasury Doomed America / Interest-Rates / US Bonds
By: Money_Morning
Martin Hutchinson writes:
In the mid 1990s, when I was working as a U.S. Treasury advisor to Croatia, I met with the managers of the U.S. Treasury's debt.
In what would turn out to be terrific advice, the Treasury officials suggested that we extend Croatia's debt maturities so the Central European country wouldn't have to refinance too often.
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Tuesday, October 04, 2011
U.S. Treasury Bond Market Rally Strong Signal of Systemic Failure / Interest-Rates / US Bonds
By: Jim_Willie_CB
The USTreasury Bond rally over the last few months has been celebrated. Some call it a contradiction of the Standard & Poors debt downgrade of USGovt debt. Some hail the rally as proof that the USDollar remains respected as global reserve currency. Some regard it as a sign of bond market health in general. Some claim the US remains the safe haven. These are all errant views to the extreme, comments from cheer leaders to a system in deep deterioration, distractions from reality. The United States is stuck in a powerful recession, its huge federal deficits set to expand further, the fiscal austerity to be sacrificed, the turmoil in Europe rendering the US panorama more alluring and cute.
Monday, October 03, 2011
PIMCO Wrong as Bond Bears Plow Into U.S. Treasuries / Interest-Rates / US Bonds
By: Mike_Shedlock
Bill Gross at Pimco has had a change of heart. Bloomberg reports Bond Bears Piling Into Treasuries as Yield Forecasts Cut by Most Since ’09
Read full article... Read full article...Eight months ago Bill Gross, manager of the world’s biggest bond fund, said Treasuries “may need to be exorcised” and cleaned them out of his $245 billion Total Return Fund. The company then used derivatives to bet against the debt in March.
Wednesday, September 28, 2011
Operation Twist, The Fed's Long Shot / Interest-Rates / US Bonds
By: Robert_Murphy
Last week the Fed announced "Operation Twist," in which the central bank will buy $400 billion of longer-dated Treasury securities while selling the same amount of shorter-dated Treasuries. This episode epitomizes everything that is wrong with the modern, statist view of money.
Friday, September 23, 2011
U.S. Treasury 10-year Note Yield Hits Record Low, Will it Last? / Interest-Rates / US Bonds
By: Asha_Bangalore
The 10-year Treasury note yield was trading at 1.73% today, record low for this security. The Fed’s Operation Twist aims to bring down long rates such that it will spur economic activity by rendering a reduction in cost of home mortgages and new ventures of entrepreneurs and making replacement cost of machines and equipment less expensive. The 10-year Treasury note closed at 1.88% on September 21 after the Fed announced the launching of Operation Twist. Thus, the Fed appears to have succeeded, but the rally in the U.S Treasury market today is largely a flight to safety. The durability of this low reading is tied to the persistence of a weak global economy; incoming data point to slowing economic conditions in several major economies of the world.
Wednesday, September 21, 2011
Fed's Operation Twist a "Visual" Success, 30-Year Treasury Bond Yield Drops 17 Basis Points / Interest-Rates / US Bonds
By: Mike_Shedlock
Curve Watchers Analysis is following the Operation Twist Story.
Wednesday, September 21, 2011
Has the FED Lost Control of Long End of the Yield Curve? We think so! / Interest-Rates / US Bonds
By: Capital3X
There is nothing more scary for the FED than to look at the 30 year yield sticky and stubborn. The only reason why FED would need to do a QE is to take control of 30 year yield. The short end is near zero and there is very little that can be done at this end. The 20/30 year yield now is where the absolute need if for a QE. The problem now is not whether the QE is of few billions or more. The FED has no option but to do: QE ad infinitum.
Thursday, September 15, 2011
U.S. Treasury Yields Plummet, Yet Demand is Lacking / Interest-Rates / US Bonds
By: Dr_Jeff_Lewis
As yields on Greek debt soared to a record 117% for one-year notes, the US Treasury announced a new auction of 3-year notes with an entirely different response.
While investors were busy watching Europe for any sign of life, a round of 3-year US Treasury debt escaped auction at a record low rate. According to the Treasury, the notes sold with a yield of .334% per year, meaning investors will walk away with little more than $10 in 2014 for every $1,000 invested.
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Saturday, September 10, 2011
Fed 'Twisting' Will Stimulate Economic Activity for Bond Market Traders / Interest-Rates / US Bonds
By: Paul_L_Kasriel
The consensus view is that after adjourning from its September 20-21 meeting the FOMC will announce a plan to lengthen the maturity structure of its securities portfolio by increasing the proportion of longer-maturity securities in the portfolio. Importantly, the size of the overall securities portfolio is likely to be held constant. Thus, shorter-maturity securities will be sold and/or allowed to run-off and be replaced with a like dollar amount of longer-maturity securities. Presumably, the intended purpose of these securities transactions is to push down yields on longer-maturity securities. The FOMC most likely would prefer that the yields on shorter-term securities remain at their current very low level, but would not be terribly disturbed if these yields drifted up a bit as more of these shorter-maturity securities were dumped into the market from the Fed's portfolio. The presumed purpose of this "twisting" of the shape of the yield curve is to stimulate the demand for longer-lived real assets such as houses, durable consumer goods, business capital equipment and nonresidential real estate by lowering the interest rates on longer-term fixed rate loans and securities.
Tuesday, August 30, 2011
U.S. Treasury Market Calling Bernanke's Bluff / Interest-Rates / US Bonds
By: Tony_Pallotta
The repurchase agreement or "repo" market is where primary dealers finance their inventory of US Treasuries, where companies find short term financing and where money market funds invest much of their capital. With daily "repo" transactions estimated at $2-4 trillion USD it is truly amazing how few understand the grease that keeps the US economy functioning.