Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Monday, October 13, 2008
How Credit Crises Begin and End / Interest-Rates / Credit Crisis 2008
By: Clif_Droke
From the standpoint of investor sentiment the credit crisis has reached the point of maximum saturation. Every TV news program and political commentator, every newspaper and every magazine in town is writing about it. It is being depicted as a virtual apocalypse that can't be stopped. For example, the headline for the latest cover of Time magazine reads: "The New Hard Times.” It features a photograph of a soup line from the Great Depression. Read full article... Read full article...
Monday, October 13, 2008
Rising Bond Yields Despite Interest Rate Cuts / Interest-Rates / Credit Crisis 2008
By: Levente_Mady
The bond market traded sharply lower last week despite the ever intensifying turmoil in world financial markets. The Treasury decided to auction a special $40 Billion 10 year Notes to ease the demand for Treasury paper in the bond market. So all of the sudden it appears that in spite of the safe haven qualities of US Treasury Bonds and Bills, the market has realized that with all the government bailouts and guarantees, there will be no shortage of government bonds going forward. Read full article... Read full article...
Monday, October 13, 2008
$62 Trillion Credit Default Swaps Threaten U.S. Government Bonds / Interest-Rates / US Bonds
By: Mark_OByrne
Gold experienced sharp falls on Friday but was still up by more than 3% on the week. This was a very impressive performance considering that major equity indices crashed some 20% to 25% for the week (see Performance table). Read full article... Read full article...
Friday, October 10, 2008
U.S. Fed Fears Loss of Power in Preventing Financial Collapse / Interest-Rates / US Interest Rates
By: Money_Morning
Shah Gilani writes: The truth? You can't handle the truth.”
The truth is, the U.S. Federal Reserve does not directly control the Federal Funds rate, and its efforts to reduce the benchmark rate from 2.0% to 1.5% may do more damage than good – though for reasons you'd never guess. Attempts to lower the Fed Funds rate could irreparably damage Fed credibility and may actually narrow the Fed's credit-crisis-management options.
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Thursday, October 09, 2008
Dollar Libor Jumps to New Credit Crisis Extreme / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Lending remains in a deep freeze as the Libor Dollar Rate Jumps to Highest in Year .
The cost of borrowing in dollars for three months in London soared to the highest level this year as coordinated interest-rate reductions worldwide failed to revive lending among banks for any longer than a day.
Thursday, October 09, 2008
LIBOR Interbank Money Market Earthquake Signals UK Debt Recession / Interest-Rates / UK Economy
By: Nadeem_Walayat
The LIBOR interbank money market rates have FAILED to respond to the co-ordinated and unprecedented interest rate cuts across the world by key central banks which includes the U.S. Fed, Bank of England and the European Central Bank (ECB), in conjunction with extra liquidity and in Britain's case a bank bailout package that could total as much as £500 billion or 41% of GDP which is on par with the amounts as a percentage of GDP the United States required to recover from the 1930's Great Depression. Read full article... Read full article...
Thursday, October 09, 2008
Credit Crisis Commercial Paper Disaster / Interest-Rates / Credit Crisis 2008
By: Money_Morning
Shah Gilani writes: The commercial paper market is the thoroughfare where Wall Street merges into Main Street. Corporations, finance companies and banks rely on Main Street investors for the cash they deposit into money-market funds and other short-term investment vehicles. Ultimately, that cash buys the commercial paper that's issued to help fund everything from corporate payrolls to a manufacturing company's production inventories. Read full article... Read full article...
Thursday, October 09, 2008
UK Interest Rate Forecast 2009 / Interest-Rates / UK Interest Rates
By: NewsLetter
October 8th , 2008 Issue #33 Vol. 2Dear Reader,
The credit crisis has intensified during the last few weeks to a new manic stage as entire countries are put at risk of bankruptcy due to their banking system rescue attempts exploding liabilities, as the demand goes out for 100% guarantees of depositors and country after country buckles under the pressure so as to prevent a collapse of their individual banking systems.
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Wednesday, October 08, 2008
Credit Default Swaps Weapons of Financial Mass Destruction / Interest-Rates / Credit Crisis 2008
By: Gary_Dorsch
The latest downward spiral in the global commodity and stock markets, coinciding with several high profile bank failures, is conjuring up fears of the calamities of the Great Depression of the 1930's. European and Asian stock markets are plunging as terror and panic hits Wall Street. The US Congress finally passed a massive $700 billion rescue package to unclog the credit markets, yet US stock markets have continued to plummet, shedding $1.5-trillion in value last week. Read full article... Read full article...
Wednesday, October 08, 2008
UK Interest Rate Cut Surprises Markets / Interest-Rates / UK Interest Rates
By: Nadeem_Walayat
The Bank of England took emergency action ahead of the scheduled Monetary Policy Committee (MPC) rate setting meeting tomorrow to cut the UK base interest rate by 0.50%.Read full article... Read full article...
Wednesday, October 08, 2008
Unprecedented Global Coordinated Interest Rate Cut / Interest-Rates / Global Financial System
By: Joseph_Brusuelas
The US Federal Reserve along with the Bank of Canada, Bank of England, the European Central Bank, Sweden Riksbank and the Swiss National Bank acted in concert to reduce short term lending rates in pre-market hours this morning.Read full article... Read full article...
Wednesday, October 08, 2008
UK Interest Rate Forecast 2009 / Interest-Rates / UK Interest Rates
By: Nadeem_Walayat
The credit crisis has intensified during the last few weeks to a new manic stage as entire countries are put at risk of bankruptcy due to their banking system rescue attempts exploding liabilities, as the demand goes out for 100% guarantees of depositors and country after country buckles under the pressure so as to prevent a collapse of their individual banking systems. However ever increasing and desperate government bailout cash in the form of escalating amounts of daily interbank liquidity, capital injections, and mortgage bond buy back schemes in addition to issuing depositor guarantees increases the liabilities of ALL countries the immediate consequences of which are being played out in ever increasing volatility in the currency markets and stock exchanges as record breaking points swings take place on alternative days. In such a panic stricken climate there are increasingly deafening calls are for immediate interest rate cuts across the western world including for an Imminent UK Interest Rate Cut. Read full article... Read full article...
Tuesday, October 07, 2008
LIBOR OIS Spread Signals Credit Crisis Earthquake / Interest-Rates / Credit Crisis 2008
By: Money_Morning
Keith Fitz-Gerald writes: More than a year ago, even before the subprime-mortgage crisis had revved itself up into the full-fledged credit crisis that's now threatening global growth, we pointed to the London Interbank Offered Rate (LIBOR) and other interbank rates that suggested that the worst was yet to come. Read full article... Read full article...
Monday, October 06, 2008
Bailout Bill Will Do Nothing for the Real Economy / Interest-Rates / Credit Crisis Bailouts
By: Michael_Swanson
We are on the edge of pure fear and panic when it comes to the stock market. By just about every indicator you may use to measure the market it is extremely oversold and ready for a bottom. The number of stocks below their 20, 50, and 200 day moving averages are at extremely low levels not seen in decades. The ratio of down to up volume on the Nasdaq was over 95% two days last week, hitting 97% last Monday, which is a level I've never seen before. The VIX is above 40 and has been at an elevated level for the past three weeks. According to the Investors Intelligence Survey there are more bears than bulls in the market, which is a positive from a contrarian standpoint. Read full article... Read full article...
Monday, October 06, 2008
Government Bonds Strong Rally on Grim Economic Outlook / Interest-Rates / US Bonds
By: Levente_Mady
The bond market traded up last week as panic in financial markets intensified. The latest and greatest $700 Billion bailout package was finally passed by the US authorities last Friday, but it did not seem to make much difference as stocks dropped another 3-4% once the deal was officially passed. As previously mentioned in this here column, it is just another band-aid that hopes to provide quick relief for the symptoms of this gigantic financial crisis without addressing the real problem of dealing with the excess credit that has been built up on all fronts. European governments have also been busy with various rescue plans. Ireland and Germany are leading the charge by declaring that those governments now will guarantee all deposits in their respective banking systems. Surely other countries, including the US , will not be far behind adopting this drastic measure. Read full article... Read full article...
Sunday, October 05, 2008
$700 Billion Printing of Bailout Monopoly Money, Hedge Your Wealth! / Interest-Rates / Fiat Currency
By: Money_and_Markets
Larry Edelson writes: If you think the biggest cost of the $700-billion bailout package is going to be higher taxes down the road, you're wrong.
The biggest cost is going to be the sheer destruction of the purchasing power of your money, an outright devaluation of the dollar that's going to occur, no matter what.
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Saturday, October 04, 2008
LIBOR Gone Crazy as Commercial Paper Market Implodes / Interest-Rates / Credit Crisis 2008
By: John_Mauldin
- The Curve in the Road
- Necessary but Not Sufficient
- Why the Government Had to Step In
- All the King's Horses
- How Can I Be 59?
The "Bailout Plan" was passed. Will it work? The answer depends on what your definition of "work" is. If by work you mean no more government intervention and no further costly programs and a functioning market, then the answer is no. But there are things it will do. This week I try to help you see what might lie ahead around the Curve in the Road. We look at how the rescue plan will function, see what is happening in the economy, and finally muse as to whether Muddle Through is really in our future. It will make for an interesting, if not very upbeat, letter, so strap in. I would like your promise to not shoot the messenger. I am just trying to give you some of my thoughts as to what may lie in our future. And remember, as you read this, we will get through it. There are better days "a'coming."
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Saturday, October 04, 2008
US Government Ramps Up the Money Printing Presses / Interest-Rates / Credit Crisis Bailouts
By: Money_Morning
Keith Fitz-Gerald writes: After some of the most tumultuous trading in history - not to mention the most pathetic political posturing we've ever seen - my e-mail box has overflowed with questions, comments and suggestions.
This week, I want to answer one of the most frequently asked questions that I've received: "Where does all the bailout money come from?"
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Friday, October 03, 2008
ECB Signals Imminent European Interest Rate Cuts / Interest-Rates / Euro-Zone
By: Victoria_Marklew
For the first time in over five years the European Central Bank (ECB) today shifted its bias toward easing. In his subsequent comments, President Trichet stated that the ECB had "no bias" regarding future monetary policy moves, and refused to be drawn on the likelihood of a lower refi rate before year's end. However, the Council reportedly discussed only two options: leaving rates unchanged or easing. Read full article... Read full article...
Thursday, October 02, 2008
Bailout Fixes Nothing, Banking System Collapse Approaches Climax / Interest-Rates / Credit Crisis 2008
By: Jim_Willie_CB
Pardon the brief and jumpy style, laced with more emotion than usual. The events of the last few days have been remarkable, alarming, chaotic, and surreal. Gonna attend the Toronto gold show hosted by the Cambridge House this weekend. If you are there, grab my arm and say hello. Let me know your perspective on the brewing crisis.Read full article... Read full article...