Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Wednesday, April 14, 2010
U.S. Treasury Bonds Prospectus, Would You Invest? / Interest-Rates / US Bonds
By: PhilStockWorld
We talk a lot about the economy in abstract terms.
On the other hand, many of us are well-versed at going over a prospectus and Jim Grant of the Interest Rate Observer has put one together for the United States of America as it seeks to raise $16Bn for 30-year Treasury Notes. According to the prospectus: "The Bonds will mature on April 15, 2040. Interest on the bonds is payable semiannually on April 15 and October 15, beginning October 15, 2010. Before giving effect to the offering of the Bonds and the securities to be issued concurrently,the United States had approximately $12,500,000,000,000 of indebtedness subject to the statutory debt limitation."
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Tuesday, April 13, 2010
Derivatives, the One Market the Fed Hopes You Won’t Find Out About / Interest-Rates / Credit Crisis 2010
By: Graham_Summers
As we celebrate year three of the Great Financial Crisis with the first official bailout of an entire country (Greece), I’m still astounded and the complete and utter lack of coverage the underlying cause of this Crisis has received.
We’ve had tens of thousands, if not hundreds of thousands of articles and research reports have been written about the Crisis, and yet I would wager less than 1% of them actually bother talking about what caused it, let alone how the various efforts to stop it have in fact FAILED to address the key issues.
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Tuesday, April 13, 2010
Watching U.S. Treasury Bonds TBT and TLT / Interest-Rates / US Bonds
By: Guy_Lerner
It's a new month, therefore, it must be time to switch my position on Treasury bonds.
Before getting to the technicals on Treasury bonds, let me state why I am interested in and why I write so much about Treasury bonds. In one word, it is diversification. After all, they move slowly (most of the time), and they don't have the pizazz of some hot stock. Treasury bonds are one asset that remains negatively correlated to the equity market. Other traditional portfolio diversifiers, like commodities, emerging market ETF's and REIT's, have become highly correlated to US equities, and they just aren't doing the job they used to of smoothing out a portfolio's returns.
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Monday, April 12, 2010
Surging U.S. Interest Rates Ahead / Interest-Rates / US Interest Rates
By: Mike_Larson
Brace yourself for one of the greatest interest-rate surges in decades — beginning first in the long-term Treasury markets … later spreading to shorter term Treasuries … and ultimately enveloping nearly every loan, debt, credit, and money market instrument on the planet.
Sunday, April 11, 2010
Greece Offered $61 Billion in Standby Loans; Someone in the "Know" Already Profited / Interest-Rates / Credit Crisis Bailouts
By: Trader_Mark
Notwithstanding the fact that markets have rallied on
- A rumor of a potential bailout for Greece a few months ago
- Confirmation a bailout was being discussed
- A framework of the bailout version #1
- A framework of the bailout version #2
Sunday, April 11, 2010
Gold Market Flashing Debt Crisis Warning / Interest-Rates / US Debt
By: Larry_Edelson
When you’ve been trading gold for 32 years like I have, you develop a sixth sense for the precious yellow metal.
You can hear it speak to you. You can feel its heartbeat. You can interpret its signals.
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Saturday, April 10, 2010
Worried About U.S. Treasury Bonds / Interest-Rates / US Bonds
By: Mike_Larson
Stop me if you’ve heard this one before …
First, the Federal Reserve slashes interest rates and floods the economy with cheap, easy money.
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Wednesday, April 07, 2010
Forget Banks and Hedge Funds, The Crash Will Stem From Municipal Bonds / Interest-Rates / US Bonds
By: LewRockwell
Robert Wenzel writes: Rick Bookstaber, who is a a Senior Policy Advisor to the Director of the SEC, Mary Schapiro, continues to maintain his own private non_SEC affiliated blog.
Tuesday, April 06, 2010
Protect Your Wealth From Exploding Debt as States Implode / Interest-Rates / US Debt
By: Sean_Brodrick
The world is breathing a sigh of relief now that the financial crisis in Greece is “over.” Yeah, right. Greece’s financial misdeeds — the country has racked up a lot of debts it can’t pay — will probably come back to haunt Europe, and soon.
But we in America shouldn’t be too smug, because U.S. states have their own money problems, many of them worse than anything facing Greece — and the problems at home are starting to erupt!
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Tuesday, April 06, 2010
Where Are Mortgage Interest Rates Headed And Why? / Interest-Rates / US Interest Rates
By: John_Mauldin
This week we look at two brief essays for your Outside the Box. The first is my friend Barry Habib talking to us about where mortgage rates are headed. Barry gives us a very simple, but logical analysis on why rates are headed up. Then we jump to Spencer Jakab writing in the Financial Times about the problems in the municipal markets. Seems we may be under funded on our public pensions by about $3.5 trillion. As a tease to his column:
Monday, April 05, 2010
U.S. Treasury Bond Market Alert: This Should Scare The Heck Out of All of Us Right Now / Interest-Rates / US Bonds
By: Mario_Cavolo
I remember a few years back when in fact, I knew nothing about "bonds" and the word confused me. I'll save you that ignorance and suffering real quickly here; A government bond is a low risk loan and it pays you a steady low interest rate, for example, such as a 10 year U.S. Treasury Bond; for 10 years, you'll receive a yield, for example of, 3% per year and your money is regarded as being in the safest possible place it could be.
Monday, April 05, 2010
EXTEND & PRETEND: U.S. High Yield Debt Hitting the Maturity Wall! / Interest-Rates / US Debt
By: Gordon_T_Long
How long can the government continue to extend & pretend? How long can public policy endlessly ‘kick-the-can’ down the road without addressing the underlying causes? Such a critical point is often academically referred to as a ‘Tipping Point’ or what newsletter writer John Mauldin refers to as a ‘Finger of Instability’. I am more pragmatic and as an investor, who is forced to call the timing, I refer to it as the Maturity Wall.
Wednesday, March 31, 2010
Why U.S. Treasury Stock Sales are Irrelevant to Monetary Policy / Interest-Rates / US Bonds
By: Dr_Jeff_Lewis
This week, the US Treasury will begin to unwind its position in Citigroup stock, which it purchased as part of the Troubled Asset Relief Program that began in 2008 to rescue failing banks. While some claim this move will reduce the money stock available in the economy, the program is unlikely to have any impact on the money supply and inflation.
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Wednesday, March 31, 2010
U.S. Treasury Bond Market: “It’s Safer to Lend to Buffett than Obama” / Interest-Rates / US Bonds
By: Casey_Research
Chris Wood, Casey Research writes: A few weeks ago, the Federal Reserve released the new Z.1 Flow of Funds document, which covers flows and outstandings through the fourth quarter of 2009. What does the document reveal?
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Wednesday, March 31, 2010
U.S. Interest Rates and Treasury Bonds, World Funding Devastation / Interest-Rates / US Bonds
By: Bob_Clark
In their constant search for the "Crisis Du Jour," the investment community has swung their attention to a funding crisis in the U.S.A. This crisis fits a cyclical model that I watch in the bond market so I thought I would take a quick overview and see what it is saying about the next few months and the year in general. Read full article... Read full article...
Tuesday, March 30, 2010
Global Sovereign Debt Crisis, Country Bankruptcy Relative Risk of Default / Interest-Rates / Global Debt Crisis
By: Nadeem_Walayat
All countries are on the path towards bankruptcy, to measure where a country stands along this path it is critical to look beyond official statistics that focus primarily on public sector net debt and the annual budget deficit in terms of % of GDP.
Friday, March 26, 2010
Week of U.S. Treasury Bond Failures / Interest-Rates / US Bonds
By: Shaily
The week of March 21-26, 2010 will be remembered for the worst week for Bond auctions. Yields on 10 year shot up to levels seen in June 2009. 10-year notes touched the highest levels since June amid heightened concerns about the government’s ability to finance its deficits and as investors turn to seeking out higher yields in other asset classes.
Friday, March 26, 2010
U.S. Treasury Bonds Are Riskier than Toilet Paper! / Interest-Rates / US Bonds
By: Mike_Larson
I have a lot of respect for Warren Buffett. As Nilus has noted before, he’s one of the world’s best long-term investors. He has a knack for buying low and selling high. And his Berkshire Hathaway holding company has been a great multi-year performer for investors.
Friday, March 26, 2010
Higher U.S. Treasury Bond Yields, Lower Equities? / Interest-Rates / US Bonds
By: Guy_Lerner
For the longest while, my mind set has been to expect higher yields accompanied by higher equity prices. After all, wouldn't higher yields be a sign that the economy is expanding and on the track to recovery? Or to put the relationship between bonds and equity prices in another light: if the equity markets would ever sell off, wouldn't bonds catch a bid as there is a flight to safety? But the technicals have me rethinking these relationships. Is it possible that we could have higher yields and lower equities?
Friday, March 26, 2010
U.S. Treasury Notes Under Pressure With Still More Bear Potential / Interest-Rates / US Bonds
By: Seven_Days_Ahead
The Technical Trader’s view: