Category: US Bonds
The analysis published under this category are as follows.
Friday, September 24, 2010
Long Term Bonds, Inflation and Deflation / Interest-Rates / US Bonds
By: Tony_Caldaro
Been thinking about Bonds, inflation, deflation, etc recently. Everyone seems to have a different opinion these days. Checking around all I could find on long term Gov't Bond rates was at the St. Louis FED. Could not find anything elsewhere. After reviewing the charts of Long Term Gov'ts since 1925, Moody's AAA since 1919, and Moody's BAA since 1919 ... I found a pattern.
Wednesday, September 22, 2010
PIMCO's Bill Gross' $8.1 Billion Bet on Inflation / Interest-Rates / US Bonds
By: DailyWealth
Dr. Steve Sjuggerud writes: "Bill Gross's PIMCO made an $8.1 billion wager," Bloomberg news reported last week.
Bill's bet is simple: He's betting inflation will return to the U.S. in the next 10 years. And he's willing to risk billions on the idea.
Tuesday, September 21, 2010
Don’t Get Bullied out of U.S. Bonds / Interest-Rates / US Bonds
By: Money_Morning
Jon D. Markman writes:
Bonds have provided a welcome safe-haven for investors seeking shelter from the financial maelstrom of the past two years, offering steady returns while stocks bounce up and down.
Now some analysts are afraid that once the selling of bonds begins it will be indiscriminate, and there will be a bloodbath. But that fear totally ignores the new investment reality in which we're living.
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Thursday, September 16, 2010
U.S. Treasury TLT ETF Downmove Nearing Completion? / Interest-Rates / US Bonds
By: Mike_Paulenoff
Let's have a look at the pattern that continues to unfold in the iShares 20+ Year Treasury Bond ETF (TLT). Very interesting and tricky set-up in the TLTs now. Let's notice that it plunged to new lows at 100.85 for the decline off of the 8/25 high at 109.50 and in so doing has broken the Apr-Sep up trendline at 102.15 (for a second consecutive session).
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Wednesday, September 15, 2010
If You Own These Popular Income Investments, Watch Out / Interest-Rates / US Bonds
By: DailyWealth
Income investments are on fire right now...
Take the MLP sector as an example. MLP stands for "master limited partnership." It's a special corporate structure used by about 100 small companies – mostly natural gas pipelines. MLPs can make excellent dividend investments. You can usually expect to earn around 9% a year in dividends from them.
Saturday, September 11, 2010
U.S. Monetary System is in Serious Trouble / Interest-Rates / US Bonds
By: Bob_Chapman
There is no question the US monetary system is in serious trouble and the situation continues to deteriorate. The smug elitist owners of the system are not getting the desired results and there is great consternation among the players. Since 1913 in running US monetary policy the Fed has had one recession after another and two depressions. The second one is the one we are now in. The Fed’s creation was mainly to end recessions and depressions, something obviously they have been quite unsuccessful at.
Friday, September 10, 2010
Is This Where the U.S. Treasury Bond Market Gets Into Trouble? / Interest-Rates / US Bonds
By: Marty_Chenard
Bonds prices up, bond yields down. Bonds prices down, bond yields up.
This is an important day for watching bond yields, because the odds are now starting to increase for an upside move on bond yields ... and that would mean down movement on bond prices.
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Friday, September 10, 2010
TLTs Should Hold / Interest-Rates / US Bonds
By: Mike_Paulenoff
Let's notice that the iShares 20+ Year Treasury Bond ETF (NYSE: TLT) is testing the 102.00-101.80 area, which represents the lower channel support line off of the April low (87.30), as well as the mid-August upside breakaway gap area.
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Friday, September 10, 2010
Investor Fixed Income Feeding Frenzy, Bond Markets Hoovering Up Cash / Interest-Rates / US Bonds
By: Mike_Larson
More than a decade ago, investors speculated wildly in dot-com stocks. You don’t need me to remind you how that ended.
Then a half-decade ago, investors went hog wild in real estate. That didn’t work out so well, either.
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Wednesday, September 08, 2010
Investor Shift from U.S. Treasury Bonds and into Gold and Commodities? / Interest-Rates / US Bonds
By: Gary_Dorsch
For the past decade, prices in Japan have been stable or fallen, in an economy where the central bank has pegged its overnight loan rate near zero-percent, and where 10-year bond yields haven’t climbed above 2-percent. Between 1991 and 1995, Tokyo spent $2.1-trillion on public works, in an economy that’s less than half the size of the United States, in order to lift its economy out of a severe downturn caused by the bursting of a real estate and stock market bubble in the early 1990’s.
Wednesday, September 08, 2010
Investors Searching for Yield: At Any Cost? / Interest-Rates / US Bonds
By: Kieran_Osborne
In an environment with historically low interest rates, fixed income investors have been pouring money into longer-duration securities, substituting 3 and 6 month T-Bills with 10-year Treasures or bond funds. To an extent, this should not be so surprising: the Federal Reserve’s (the Fed) extraordinary monetary policies have resulted in extremely low yields at the short end of the yield curve. Investors seeking yield have been forced out the yield curve or into increasingly risky investments in an attempt to gain higher investment returns. However, this is not a strategy without risks, both at the individual investor level and for the economy as a whole. Are the Fed’s monetary policies, combined with the government’s decision to issue increasing levels of longer duration debt, having the unintended consequence of stoking the fire for further financial stress?
Tuesday, September 07, 2010
I Guarantee You'll Lose Money in The U.S. Treasury Bond "Comfort Trap" / Interest-Rates / US Bonds
By: DailyWealth
Tom Dyson writes: You'll sleep soundly at night. Your neighbors won't laugh at you. Your pulse won't budge. But if you make this trade, I guarantee you'll lose money...
One year ago, I opened an essay with the paragraph above. Then I showed you why a certain trade was a foolish proposition, even though it appeared to be a "no brainer."
Friday, September 03, 2010
How to Profit From the “Widow-Maker” Trade, Shorting U.S. Treasury Bonds / Interest-Rates / US Bonds
By: Money_Morning
Keith Fitz-Gerald writes:
Although we're in the midst of a U.S. Treasury bond bubble so big that pundits are calling for investors to short the government paper, resist the urge to jump in with both feet.
Doing so right now is nothing more than a "widow-maker" trade that will test both your patience and your pocket book. And yet, "shorting" the U.S. Treasury bond market is an opportunity you can't afford to pass up - so long as you execute the trade correctly.
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Friday, September 03, 2010
Exhaustion Gap on Yields Chart! / Interest-Rates / US Bonds
By: Brian_Bloom
Summary: The charts are signalling an important change in market attitudes to risk – and by implication, the Fed’s attitude to risk. If yields are to rise from here it will be because investors in treasury bonds are expecting to incur capital losses. Why would this be? This article comes to the conclusion that we are heading for a period of tight capital markets. If money is tight, credit will be tight. If credit is tight, then, to borrow money will require the borrower to pay higher rates of interest to compensate the lender for his higher level of risk. If credit is tight, consumer demand will, at best, not grow and, at worst, fall. In the former case, we can expect a steady-as-she-goes outcome. In the latter case, the result will be a slow down in economic activity and a so-called “double dip” recession.
Thursday, September 02, 2010
Blowing Bubbles, U.S. Treasury Bonds / Interest-Rates / US Bonds
By: Charles_Maley
Common sense is the knack of seeing things as they are, and doing things as they ought to be done – C.E. Stowe
The American media is officially obsessed with sensational terminology when describing the financial markets these days. Nothing trends, it either explodes higher or melts down. We have “flash crashes”, a “new normal” and the frightening “double dip”. We also see bubbles about to burst everywhere.
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Wednesday, September 01, 2010
US Must Displace Global Treasury Bonds Activity / Interest-Rates / US Bonds
By: Dr_Jeff_Lewis
Extremely low Treasury rates have been a boon for the Federal Government's bottom line, but they haven't helped attract any global interest in US debt. Instead, nations around the world are cutting back on their Treasury positions, internalizing the financing of new debts and deficits.
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Monday, August 30, 2010
It is the FedOnomics, Stupid! / Interest-Rates / US Bonds
By: Submissions
Seth Barani writes: It was 1913, year when US Federal Reserve Bank was established. Coincidently, the 16th amendment on income taxation was also passed in the same year. America was getting ready to wage wars. Fed was getting ready to print (aka "create") money and supply it in plenty. All done at your cost.
Sunday, August 29, 2010
U.S. Treasury Bond Market Rally Hits Bernanke Brick Wall / Interest-Rates / US Bonds
By: Levente_Mady
The bond market continued to power ahead – until Thursday. On Friday morning the All-mighty Ben Bernanke opened his mouth and the words of wisdom that were emitted have caused great joy and happiness for the risk trade and got the long bond futures to tank 2½ points on the day. For a day it appears that Ben can walk on water, but I have to wonder how long before the deeply and increasingly disturbing reality will make this mirage disappear.
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Friday, August 27, 2010
Gold and Stocks Yield Relationship and Buy Signals / Interest-Rates / US Bonds
By: Adrian_Ash
Time was, stocks were riskier than bonds and should have the higher yield. But then came inflation...
AT THE START of this week, stocks on the Dow Jones, Tokyo Nikkei and FTSE100 in London offered a bigger dividend-yield than you'd earn in interest from their local government bonds.
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Friday, August 27, 2010
U.S. Treasury Bond Rally Tiring, Gold Moving Higher / Interest-Rates / US Bonds
By: Mike_Paulenoff
What might Bernanke's speech have said or implied that triggered the market response that we have witnessed so far today? How about: Don't fight the Fed...The economy is anemic, and the outlook might be uncertain-to-poor, but the Fed will pump, buy, and do whatever it takes to turn it around. The Fed will keep short rates at ZERO for a long time, and force companies and investors to take risk....