Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Monday, May 10, 2010
U.S. Treasury Bond Market Breaks Out of Trading Range / Interest-Rates / US Bonds
By: Levente_Mady
The bond market finally broke out of its 5 month trading range with some conviction. The long bond future actually traded as high as 124½ before settling back to 122 even at the close on Friday. While the fundamental data mostly exceeded expectations, the focus was on the jumpy, weak and nervous stock market which provided Treasuries with their traditional safe haven bid along with gold and the US Dollar.
Sunday, May 09, 2010
European Debt Crisis, What’s Up With The PIGS? A Picture Is Worth A Thousand Words / Interest-Rates / Global Debt Crisis
By: Charles_Maley
Once again, the media has many reasons (in hindsight) for the demise in Greece, Portugal and Spain, and of course are now forecasting how the situation will be resolved. Personally, I think this could be the beginning of the end for the Euro. Greece is the first test, but other European countries have problems, and the entire European Union are now called into question. Remember, the original goal was to unite different economies into one powerful trading block, with the Euro currency hopefully replacing the Dollar as the world currency.Read full article... Read full article...
Sunday, May 09, 2010
Greece Dreams of Bankruptcy / Interest-Rates / Global Debt Crisis
By: Pravda
If Greece does not receive financial aid by May 19, the country will become a bankrupt, the government warns. By that date Greece must pay off 9 billion Euros. Last week the country asked the International Monetary Fund for support. The decision regarding funds allocation will be made based on the results of three-way negotiations between the Greek government, European Committee and the IMF.
Saturday, May 08, 2010
Sovereign Debt Goes Bang! Challenge for Central Banks / Interest-Rates / Global Debt Crisis
By: John_Mauldin
The Risks from Fiscal Imbalances
The Challenge for Central Banks
Bang, Indeed!
The Center Cannot Hold
A Decent Employment Report
Last week we focused on the first half of a paper by the Bank of International Settlements, discussing what they characterized as the need for "Drastic measures ... to check the rapid growth of current and future liabilities of governments and reduce their adverse consequences for long-term growth and monetary stability." As I noted, you don't often see the term drastic measures in a staid economic paper from the BIS. This week we will look at the conclusion of that paper, and then turn our discussion to the fallout from the problems they discuss, initially in Europe but coming soon to a country near you.
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Friday, May 07, 2010
UK Government Bond Gilts, the Election and the Euro zone / Interest-Rates / UK Debt
By: Seven_Days_Ahead
(Written BEFORE the Elelction)The Macro Trader’s view:
Today the UK votes in the closest fought General election campaign in living memory. With a hung Parliament still looking the most likely outcome, at least according to the opinion polls, we look at how the Gilt might react once the results are known.
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Wednesday, May 05, 2010
The Subprime Rhyme with U.S. Debt Debacle / Interest-Rates / US Debt
By: Michael_Pento
The similarities between the subprime mortgage crisis and that of the coming collapse of the U.S. bond market are uncanny. In fact, Mark Twain may have had the U.S. debt market and the previous debt-fueled real estate crisis in mind when he said that “History does not repeat itself—but it does rhyme.”
Wednesday, May 05, 2010
Trichet Floods European Banking System With Cash / Interest-Rates / Euro-Zone
By: Mike_Shedlock
After all his tough bulldog talk over the years, the world can now see Trichet is in reality nothing more than a monetarist pussycat when the chips are on the line.
Monday, May 03, 2010
The Great Interest Rate Explosion of 2010-2011 How to Protect Your Wealth and Profit / Interest-Rates / US Bonds
By: Mike_Larson
The dot-com bubble of the late 1990s. The housing bubble of the mid-2000s. They both wreaked massive havoc on investor portfolios. Trillions were lost … both here and abroad.
At Weiss Research, we take pride in the fact we warned of the epic destruction well in ADVANCE of the twin busts in tech stocks and housing.
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Monday, May 03, 2010
What Next for U.S. Treasury Bonds? / Interest-Rates / US Bonds
By: Frank_Shostak
At the end of March the yield on the ten-year T-note closed at 3.833%, up from 3.617% the month before. Note that at the end of March last year the yield stood at 2.67%.
Sunday, May 02, 2010
Sovereign Debt Crisis Dominos Are Lining Up to Collapse / Interest-Rates / Global Debt Crisis
By: Bryan_Rich
Boy, what a week! I’ve been warning about a troubled euro and a building sovereign debt crisis for some time. And the bond and currency market activities this past week are a clear example that the momentum is picking up.
There’s a bumpy road ahead … and not just for Greece.
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Sunday, May 02, 2010
Global Debt Crisis Future Public Debt Trajectory Protections / Interest-Rates / Global Debt Crisis
By: John_Mauldin
There Had to Be a Short
How Should Our Institutions Invest?
The Future Of Public Debt
The Future Public Debt Trajectory
Debt Projections
Everyone and their brother intuitively knows that the current government fiscal deficits in the developed world are unsustainable. They have to be brought under control, but that requires some short-term pain. Today we look at a rather remarkable piece of research from the Bank of International Settlements (BIS) on what the fiscal crisis may morph into in the future, how much pain will be needed, and what will happen if various countries stay on their present courses. Some countries could end up paying north of 20% of GDP just on the interest to serve their debt, within just 30 years.
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Sunday, May 02, 2010
Roast the PIIGS, and End the Euro Debt Crisis / Interest-Rates / Global Debt Crisis
By: Sol_Palha
"Mankind differs from the animals only by a little and most people throw that away." ~ Confucius, BC 551-479, Chinese Ethical Teacher, Philosopher
The last meltdown was caused by the financial crisis in the United States, which was triggered by the onset of the housing and mortgage crisis. We now have the potential for a full blown currency crisis to unfold. Greek debt has been reduced to junk status and both Spain and Portugal have had their ratings lowered.
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Saturday, May 01, 2010
U.S. Treasury Bond Market Update / Interest-Rates / US Bonds
By: Levente_Mady
That darned bond market just won’t give up the ghost! So much to write about this week in so little space! Another record amount of supply (close to $130 Billion) was auctioned without a hiccup last week. The bond auctions were overshadowed by the FOMC meeting and some further supportive data on the fundamental front.
Friday, April 30, 2010
EXTEND & PRETEND: Uncle Sam, You Sly Devil! / Interest-Rates / Credit Crisis 2010
By: Gordon_T_Long
The modus operandi (MO) of deviant behavior aids investigators in doing criminal profiling. Forensic accounting takes a similar approach and leads us to some unnerving conclusions about Uncle Sam. As Tax Payers we place our sacred trust in our elected officials and government. Is that trust being handled similarly to how Goldman Sachs apparently has been handling its fiduciary responsibilities?Read full article... Read full article...
Friday, April 30, 2010
Greece Armageddon, Financial Ebola Sweeps Through Global Bond Markets / Interest-Rates / Global Debt Crisis
By: Mike_Larson
What does the end of the bond market world look like? Something like this …
Friday, April 30, 2010
The Phenomenon of Interest / Interest-Rates / Economic Theory
By: MISES
It has been shown that time preference is a category inherent in every human action. Time preference manifests itself in the phenomenon of originary interest, i.e., the discount of future goods as against present goods.
Thursday, April 29, 2010
Greece Bond Market Crash, Europe and ETFs / Interest-Rates / Global Debt Crisis
By: Ron_Rowland
When Americans hear about Greece, the first thought that comes to mind is usually “ancient history.” Now Greece is all over the headlines for its financial woes.
But if truth be told, Greece hasn’t done anything different from many other countries, including the U.S.! The government simply spent too much money, the citizens enjoyed too many overly-generous social programs, and eventually the bill came due. Now someone has to pay up — and the Greeks don’t have the cash.
Read full article... Read full article...
Wednesday, April 28, 2010
Greek Debt Crisis Won’t Spawn Second Global Financial Crash / Interest-Rates / International Bond Market
By: Money_Morning
Martin Hutchinson writes: The Greek debt crisis is starting to display an uncanny resemblance to the subprime crisis that sank the U.S. housing market, sent the global economy into a tailspin and touched off the worst financial crisis since the Great Depression.
Tuesday, April 27, 2010
Greece Government Bond Market Panic Crash, Yields Hit 18%, Portugal Next? / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
It did not take too long for contagion to spread (one day), smack in the face of EU statements that contagion was no risk. Why the EU would put themselves in a position to look so foolish is beyond me. Here is a series of articles to consider.
Tuesday, April 27, 2010
Portugal Suffering Greek Debt Contagion / Interest-Rates / Global Debt Crisis
By: Trader_Mark
Nothing new to long time readers as we've pointed out repeatedly that the newest, and biggest bubble of them all is the government debt bubble. [Feb 5, 2010: Sovereign Risk Chart - Where Would the US Fit in, on Europe's Scale?] In a world fixated only on benefits, and could care less of the costs as long as they are borne by taxpayers, very few seem to care these days. It is now the ethos that whatever the problem, a central bank or government will throw a country's populace under the bus to "solve" it.