Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Monday, May 14, 2012
Greece, Discovering the "End" in "Extend & Pretend" / Interest-Rates / Eurozone Debt Crisis
By: Ashvin_Pandurangi
There was a rumor over the weekend that the Troika may be willing to relax the terms of the dreaded memorandum for the Greek government if it formed a "pro-European" coalition government and avoided new elections. This rumor is ridiculous on both fronts - 1) the Troika and Germany would NEVER make such a concession for fear that every single penny pledged to peripheral nations would become contingent on the outcome of national elections and, essentially, a gift with no conditions attached (something that would pit the German people against their crony, bankster-run government once and for all), and 2) the left-wing Syriza party in Greece would NEVER commit itself to the Euro while it continues to gain popularity each day before the new elections.
Sunday, May 13, 2012
U.S. Treasury Bond Market Forecast for Coming Week / Interest-Rates / US Bonds
By: Manas_Banerji
French election outcome was not much disturbing but Greece is again creating the fear due to their inconclusive result or it will be better to say that Greek voters voted against the bailouts and those austerity measures. German minister’s remark about Greece may fuel lots of calculations. Market is speculating that Greece may quit Euro but here the important thing is what the Euro zone authorities are thinking! Earlier I was confused about holding back of 1bn euros of rescue money but as situation is developing, now it is quite understandable.
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Saturday, May 12, 2012
Greece Exit, Euro-Zone Collapse, Spain and Portugal Will Follow Within 6 Months / Interest-Rates / Eurozone Debt Crisis
By: Nadeem_Walayat
This analysis continues on from my last article in light of the recent French and Greek elections where voters rejected economic austerity in favour of money printing Inflation stealth debt default as politically an smoke and mirrors Inflationary depression is being seen as far more palatable for populations than a deflationary depression slow motion economic collapse. However to be able to print money inline with the true state of the respective competitiveness of euro-zone economies, then these countries governments have no choice but to exit the euro-zone, or be forced out as they one by one fail to follow through on agreed austerity measures.
Saturday, May 12, 2012
Student Loans, The Next Bubble? / Interest-Rates / US Debt
By: Andy_Sutton
Since the housing bubble burst spectacularly in late 2007, many analysts have been actively seeking out the next likely explosion. Rest assured, it will be related to debt in some way. US Treasuries, credit cards, and potentially another disaster on Wall Street thanks to over-leveraging have all been mentioned as potential leading candidates. However, there is another bubble out there and it too is debt related. This one, in my opinion, has far greater consequences because it involves a group that is the least financially able to deal with the ramifications. I’m talking about student loans and the massive bubble that has been expanding for at least the past decade.
Saturday, May 12, 2012
Whe Are U.S. Treasury Bond Yields Going? / Interest-Rates / US Bonds
By: Tony_Pallotta
As the US Treasury curve sits near all-time highs the question on every investors mind is what happens next. Can Treasury yields move lower? In real terms when adjusted for inflation yields are negative. In other words you are losing money on an inflation adjusted basis to lend your money to the US Government.
Friday, May 11, 2012
Global Debt Crisis, There Is Not Enough Money On Planet Earth / Interest-Rates / Global Debt Crisis 2012
By: Ashvin_Pandurangi
No matter how you look at it, as The Automatic Earth and others have pointed out ad infinitum, in the end the US economy rests on two pillars: Jobs and Housing. They are where both all the good and bad in economic terms begin and end. Ben Bernanke and his Fed policies are majestically failing on both counts.
Tuesday, May 08, 2012
Developed Nations at the Precipice of Oblivion , as End of the Debt Supercycle Draws Near / Interest-Rates / Global Debt Crisis 2012
By: The_Gold_Report
Are developed nations across the globe at the precipice of oblivion? Yep, says pundit John Mauldin. Fresh after the announcement of a new joint venture with Casey Research and the conclusion of his own Strategic Investment Conference in Carlsbad, Mauldin spoke to The Gold Report. He believes that investors have a small window to save their investments from the end of the debt supercycle, but they'll have to move fast.
The Gold Report: What does your new partnership with Casey Research mean for investors going forward?
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Monday, May 07, 2012
The Golden Rule Reinterpreted / Interest-Rates / Global Debt Crisis 2012
By: Peter_Schiff
In an April speech in Berlin, Dr. Andreas Dombret, a member of the Executive Board of the Deutsche Bundesbank (the German central bank), offered a startlingly frank assessment of the current problems in Europe. Although his comments were meant to apply to the tensions and imbalances that exist between the northern and southern tier of the 17-member eurozone, they shed inadvertent light on the broader global economy.
Saturday, May 05, 2012
U.S. Treasury Bond Market Forecast for Coming Week / Interest-Rates / US Bonds
By: Manas_Banerji
Some sections of the market were looking for further stimulus by ECB or an assurance from Draghi. I think that type of assurance would act as a boost for market. But here Draghi has different approach, as he thinks that liquidity is abundant in the Euro zone. This time Draghi emphasized more on Growth, as I said in my past reviews that I am not sure how growth will come with lots of austerity measures and cuts! ECB hold its interest rate, which was already discounted.
Friday, May 04, 2012
Spain All Crisis, No Solutions for Savers / Interest-Rates / Eurozone Debt Crisis
By: Adrian_Ash
For Spanish savers, the financial pages are all crisis, no solution...
SPAIN'S financial crisis might be hardening the politics of capitalists vs. workers and the unemployed, but it's hardly benign for the first group.
Friday, May 04, 2012
The Fed and the ECB’s Hands Are Politically Tied… Bye Bye Market Props / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
As many of you know, my primary forecast regarding Europe is that the EU will be broken up and/or collapse within the coming months.
Friday, May 04, 2012
Merkel’s In Hot Water So Sorry Spain, No More Bailouts / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
Spain, which is now at the forefront of the Great Western Debt Default Collapse, has opted to seek funding from the mega-bailout fund, the European Stability Mechanism (ESM) rather than going directly to the ECB or the IMF.
The reasons for this are clear: the IMF doesn’t have the funds (nor will it as the US won’t fund a European bailout during a Presidential election year). And the ECB is now backed into a political corner with Germany.
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Thursday, May 03, 2012
Eurozone Debt Crisis "Day of Reckoning' / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
David Zeiler writes:
How many times have we been told the Eurozone debt crisis is resolved, only to have it turn up again like a bad penny?
Last year's string of good news/ bad news on the Eurozone debt crisis had the markets going up and down like a yo-yo until the routine grew so tiresome that most people stopped paying attention.
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Thursday, May 03, 2012
U.S. Treasury Bonds are on the Move / Interest-Rates / US Bonds
By: Mike_Paulenoff
In the aftermath of the very disappointing ADP Jobs Report, the S&P 500 and its ETF, the SPDR S&P 500 (SPY), returned to revisit Tuesday morning's pre-spike low, which so far has contained the selling pressure. Meanwhile, the iShares Barclays 20+ Year Treasury Bond ETF (TLT), which tends to move opposite the equity indices (as equity prices decline, bond prices benefit from a flight to safety response), is climbing and appears poised to take off into a new up-leg, depending on investor reaction to Friday's jobs data.
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Wednesday, May 02, 2012
Are Junk Bonds About to Become a Victim of Their Own Popularity? / Interest-Rates / US Bonds
By: Money_Morning
Don Miller writes:
In our current low-interest-rate environment, many investors are widening their search for more income by buying junk.
Junk bonds, that is. More formally known as high-yield bonds - junk bonds have been on a tear lately.
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Tuesday, May 01, 2012
The Market Calls BS on Spain’s Efforts to Cover Its Toxic Banking Debt / Interest-Rates / Credit Crisis 2012
By: Graham_Summers
In a previous article I began delving into the toxic sewer that is the Spanish banking system. At the root of the problem is the previously unregulated Spanish cajas or regional/ local banks which own as much as 56% of all Spanish mortgages.
To give you an idea of how bad things are with the cajas, consider that in February 2011 the Spanish Government implemented legislation demanding all Spanish banks have equity equal to 8% of their “risk-weighted assets.” Those banks that failed to meet this requirement had to either merge with larger banks or face partial nationalization.
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Tuesday, May 01, 2012
Demand for Loans Rose, But Bankers Remain Cautious / Interest-Rates / Credit Crisis 2012
By: Asha_Bangalore
The Fed’s Senior Loan Officer Survey of the second quarter shows an increase in the demand for loans from large, medium and small firms (see Chart 1 and 2).
Monday, April 30, 2012
Secrets of the Spanish Banking System That 99% of Analysts Fail to Grasp / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
Spain is a catastrophe on such a level that few analysts even grasp it.
Indeed, to fully understand just why Spain is such a catastrophe, we need to understand Spain in the context of both the EU and the global financial system.
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Monday, April 30, 2012
Force Taxpayers to Buy Spanish Bonds is Ludicrous Proposal From Harvard Academic Economics Professor / Interest-Rates / Credit Crisis 2012
By: Mike_Shedlock
As the economic crisis lingers on, the number of ludicrous proposals to deal with the crisis rises every month.
I have lost count by now of preposterous ideas and who made them (does anyone have the complete list?), but a proposal by Harvard Economics professor Martin Feldstein to force taxpayers to buy Spanish bonds surely makes the list of top-five ludicrous proposals.
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Sunday, April 29, 2012
Myth Buster:TARP Bailout May Realize A Positive Return for Taxpayers? / Interest-Rates / Credit Crisis Bailouts
By: EconMatters
The Troubled Asset Relief Program (TARP) is a program initiated by the US government, funded by taxpayers, in October 2008 to bail out the banking and housing sector after the 2008 financial crisis. Due to the program's complexity and "repayment" schemes, there has been different estimates of what TARP would ultimately cost.