Category: US Bonds
The analysis published under this category are as follows.
Thursday, August 26, 2010
Play the Treasury Bond Market Yield Curve with New ETNs / Interest-Rates / US Bonds
By: Ron_Rowland
Many individual investors spend their time thinking about stocks. Which stocks are going up? How high are they going? Should I buy now?
These can be important questions, but stocks aren’t the only financial market. So why do eyes glaze over when the bond news comes on? My guess is that people don’t understand how big the bond market is — or how much influence it has on everything else.
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Thursday, August 26, 2010
Marc Faber and Peter Schiff on the U.S. Treasury Bond Bubble / Interest-Rates / US Bonds
By: Dian_L_Chu
As I've been saying for some time that the bond market is screaming for an imminent burst, now Dr. Marc Faber and Mr. Peter Schiff also spoke with CNBC on Aug. 23 warning of a bond bubble trouble.
Wednesday, August 25, 2010
Spike High for Treasuries / Interest-Rates / US Bonds
By: Mike_Paulenoff
Based on my near- and intermediate-term work, the patter and momentum configuration in the iShares Barclays 20+ Yr Treas Bond ETF (TLT) argue that the price structure hit a spike high this morning at 109.50, reflecting the flight to safety surge in buying of US Treasury paper despite the puny yields.
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Wednesday, August 25, 2010
Why Are You Buying a Stinkin' Bond Fund Now? / Interest-Rates / US Bonds
By: DailyWealth
Dr. Steve Sjuggerud writes: You're guilty... You're busted.
But it's not just you... Everybody is doing it. Everybody is buying bond funds.
Wednesday, August 25, 2010
Is the U.S. Treassury Bond Bubble About to Burst? / Interest-Rates / US Bonds
By: Money_Morning
Jason Simpkins writes:
Bonds have provided a welcome safe-haven for investors seeking shelter from the financial maelstrom of the past two years. But now many analysts fear bonds have entered bubble territory and pose a rising threat to their holders.
The amount of money flowing into bonds is "probably not sustainable on a consistent basis" Joel Levington, managing director of corporate credit at Brookfield Investment Management Inc., told Bloomberg News. "Eventually it won't be sustainable. Whether that means five years from now or five weeks is a little difficult to tell."
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Wednesday, August 25, 2010
Self Fulfilling Prophecy: The U.S. Treasury Bond Trade / Interest-Rates / US Bonds
By: Dian_L_Chu
The 10 year T-Note is currently yielding 2.5%, and the Fed`s latest quantitative easing initiative is becoming counterproductive to their stated purpose of trying to stimulate the economy by encouraging more risk taking, i.e., private capital utilization seeking attractive return on investment opportunities. The issue is that Mr. Ben Bernanke and the Fed governors although great academicians have failed to take account for how traders and financial markets impact and take advantage of Fed policy.
Wednesday, August 25, 2010
At Least Be Aware Of The Current Risk In Treasury Bonds! / Interest-Rates / US Bonds
By: Sy_Harding
Money continues to pour into bonds at a ferocious pace, with investors confident they are a safe and conservative holding in the midst of all the economic and stock market uncertainty.
With last week’s further rally, the 30-year Treasury bond had its biggest weekly gain in price since May, pushing their yield down to just 3.66%. The yield on 10-year Treasury notes was pushed down to 2.61%, while the yield on two-year notes fell to 0.496%.
Tuesday, August 24, 2010
U.S. Treasury Bonds, The Fed's Biggest Bubble / Interest-Rates / US Bonds
By: Michael_Pento
I've made a living out of exposing economic fallacies, but there's one whale that I can't seem to harpoon. Even top-flight Wall Street analysts seem to believe that the Fed's doubling of the monetary base after the credit crunch has not had an inflationary impact on our economy. Their logic can be summed up like so: "The money the Fed created and dropped from helicopters has all been caught in the trees." In other words, the Fed is creating money, but it is just being held as excess reserves by the banking system instead of being loaned to the public. Therefore, the money supply hasn't truly increased, there is no money multiplier effect, and aggregate price levels are behaving themselves.
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Tuesday, August 24, 2010
Why US Treasury Notes Will Eventually Yield Nothing / Interest-Rates / US Bonds
By: Barry_M_Ferguson
For all investors seeking income, I have some bad news for you. US Treasury notes and bonds will eventually yield nothing. That’s right, I said it. “Zero percent interest coupons”. Many pundits would argue the opposite. And yes, the argument for higher interest coupons in the future is valid and sound. The US is currently following a strategy of debt destruction such that as I write, the nation is closing in on $13.5 trillion in debt. To see the number is quite startling. It is: $13,500,000,000,000.00. Mercy! The number is so large, most calculators can’t account for all the numeric placeholders. The number is so large, we now round up by hundred billions. The number is so large, the late astronomer, Carl Sagan, referred to really large numbers as “billions and billions”.
Tuesday, August 24, 2010
A U.S. Treasury Bond Bubble? Not Likely! / Interest-Rates / US Bonds
By: Guy_Lerner
My thoughts on the bond bubble can be summarized in two words: "not likely". When commentators have to tell you it is a bubble, it isn't a bubble. Or to put this in another context, name me one market top in the last 10 years where the commentators on CNBC where not imploring their audience to buy at the top. If anything, the commentators have this aura of incredulousness. "How dare bonds head higher and stocks head lower. Doesn't everyone know how undervalued equities are?" When CNBC throws in the towel and when they utter those famous words - "is it to late to buy now?" - then we can consider the possibility of a bond bubble.
Tuesday, August 24, 2010
Bill Gross Pushing for MORE Bailouts for PIMCO Bond Fund / Interest-Rates / US Bonds
By: Mike_Stathis
Two years ago when Fannie Mae and Freddie Mac were collapsing, former Goldman Sachs CEO and U.S. Treasury Secretary Henry Paulson repeated the promise of “no more bailouts,” so as to calm worried Americans who feared they would be on the hook for hundreds of billions of dollars of toxic mortgages held by these GSEs.
Sunday, August 22, 2010
U.S. Treasury Bond Market Continues to Power Ahead / Interest-Rates / US Bonds
By: Levente_Mady
The long bond futures moved up another couple of points as the fundamental backdrop looks to be increasingly dire. In spite of the bullish bias of equity options expiry week, stocks struggled mightily last week as the stocks to bonds investment flows gained momentum. We are back to the risk versus safe haven trade as the US Dollar and bonds benefitted from their perceived safe haven status.
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Wednesday, August 18, 2010
U.S. Treasury Bonds Inverse Chart, If This Were A Stock.... / Interest-Rates / US Bonds
By: Guy_Lerner
See figure 1 a weekly price chart. The 40 week moving average (i.e, red line) is heading higher, and prices are trading above key pivot points, which are areas of support (buying) and resistance (selling). In essence, this is a "beautiful" chart with lots of momentum (i.e., note the breakout gaps). If this were a stock, the analysts and pundits would be all over the "breakout" ---blah, blah, blah.
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Tuesday, August 17, 2010
This Market Just Flashed a Huge Warning Signal / Interest-Rates / US Bonds
By: DailyWealth
Tom Dyson writes: David Rosenberg calls it the smoking gun...
Rosenberg and I just spoke on the phone. You might not know his story, but David Rosenberg is a Wall Street legend.
Thursday, August 12, 2010
Hey DeLong! U.S. Treasury Bond Bubble Prices Do Not Justify Bubble Prices! / Interest-Rates / US Bonds
By: Brady_Willett
The U.S. government bond market is the last of the great asset bubbles. We know this, first and foremost, because no one in any position of power in America is willing, and perhaps more precisely able, to enact the painful policies required to ever repay current/future obligations - and yet the market does not, as yet, seem to care.
Thursday, August 12, 2010
Gold and U.S. Treasury and Mortgage Bonds Naked Shorts As Liquidity Machine / Interest-Rates / US Bonds
By: Jim_Willie_CB
The article of July 22nd on "Smoking Guns of USTreasury Monetization" hit more desks, raised more dust, and brought more attention than expected to the grand fraud in progress using USGovt debt securities. The glaring actions continue without any hint of legal prosecution but deep foreign resentment among creditors as publicity mounts. Nobody appreciates counterfeit of the instruments held in great volume as supposed savings. The only counterfeit of honorable origin is of Microsoft products, since mostly stolen and surely not the output of in-house innovation.
Wednesday, August 11, 2010
Front Running the Fed Treasury Bond Purchase Announcement - Who Knew? / Interest-Rates / US Bonds
By: Mike_Shedlock
Curve Watchers Anonymous is paying close attention to the following snip from the Bloomberg article Pimco Calls Fed Rate Policies ‘Good for Risk Assets’
Read full article... Read full article...The central bank said in a separate statement that it will announce a purchasing schedule today and that its buying will be concentrated “in the two- to 10-year sector” of the maturity spectrum, though it will also buy other maturities as well as Treasury Inflation Protected Securities.
Monday, August 09, 2010
U.S. Treasury Bond Market Continues to Power Ahead / Interest-Rates / US Bonds
By: Levente_Mady
The bond market continues to power ahead. The long bond futures tested the 130 level for the first time in 20 months and look set for a slight breather heading into the long auction cycle next week.
While stock investors seem to be oblivious of the mounting evidence of a significant deflationary loss of economic momentum (or maybe they just choose to ignore it on purpose), the Federal Reserve will get its chance to vocalize its concerns following their Policy Meeting scheduled for next Tuesday.
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Friday, July 30, 2010
New Upleg for TLT Treasury Bond ETF / Interest-Rates / US Bonds
By: Mike_Paulenoff
This morning's surge in the iShares Barclays 20+ Year Treas Bond (NYSE: TLT) reflects greater-than-expected economic deceleration from Q2 to the revised (higher) Q1, as well as disappointing figures for personal consumption, which has triggered a fierce bout of short-covering.
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Wednesday, July 28, 2010
Investors Beware of Municipal Bonds as Defaults Soar / Interest-Rates / US Bonds
By: Money_Morning
Martin Hutchinson writes: Of the speculative excesses that misguided monetary policy and a prolonged recession has caused, the one that poses the most danger to investor wealth is the financial bubble in state and local municipal bonds.
Municipal bonds - usually referred to as "munis" - are very popular portfolio plays because of tax advantages that, in effect, enhance their rates of return. There's also an allure because of their local nature: Investors can invest in specific bond issues that provided the money for projects such as schools, highways, bridges, hospitals or housing that actually affects the community in which the investor lives. That makes them a very tangible investment.
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