Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Friday, October 07, 2011
Mervyn's Pringle Problem / Interest-Rates / UK Debt
By: Adrian_Ash
Bank to Treasury: Forget credit easing. It's your debt that needs queasing...
UNLIKE PRINGLES tasty potato snacks, quantitative easing doesn't come with a resealable lid. So the famous sales line is only more true for central bankers:
"Once you pop, you can't stop!"
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Friday, October 07, 2011
Financial Debt Destroyed Our Economy / Interest-Rates / US Debt
By: Barry_Elias
The financial industry had few assets to market in the past three decades.
As such, they fervently pursued the marketing of debt. In many instances, it appears this methodology was a sustained, premeditated, and deceitful endeavor).
Friday, October 07, 2011
Navigating the Eurozone Debt Crisis and Preparing for Greece’s Failure / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Folks, you hear a lot about the eurozone crisis, but what you don't run across very often is a coherent idea on how to move forward. My friends at STRATFOR, a private intelligence company, have done us all the courtesy of saying out loud what everyone else shies away from: Eject Greece from the eurozone.
It's not pretty. It belies the lovely concept of a unified and prosperous Europe. And the worst part: it comes with a big fat price tag, of the 2-trillion-euro variety. But it may be the only way to steer the train before it derails completely.
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Thursday, October 06, 2011
How Ben Bernanke "F*d" the Banks and Fixed Income Savers at the Same Time / Interest-Rates / Central Banks
By: Mike_Shedlock
Hello Ben. It seems your ploy to hold interest rates at preposterously low levels has backfired into a run on Bank of America assets.
Bank of America Customer Frustration Grows
Thursday, October 06, 2011
What's Next on the Fed's Plate? / Interest-Rates / Quantitative Easing
By: Dr_Jeff_Lewis
It's safe to say that the Fed's latest announcement won't be enough to get Wall Street fired up. In a decision designed to minimize the long run cost of money, the Fed's so-called "Operation Twist" has been a nonstarter for Wall Street.
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Thursday, October 06, 2011
5 Ways You Can Use Trendlines to Improve Your Trading Decisions / Interest-Rates / Learn to Trade
By: EWI
Greetings Trader,
Robert Prechter’s Elliott Wave International (EWI) has just released a free 14-page trading eBook: Trading the Line – 5 Ways You Can Use Trendlines to Improve Your Trading Decisions, by Senior Analyst Jeffrey Kennedy.
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Wednesday, October 05, 2011
Will the Hawks of the FOMC Have to Reconsider? / Interest-Rates / US Interest Rates
By: Asha_Bangalore
The Bernanke Fed is currently divided about its view of the pace of future economic activity. The vote at the August and September meetings included three dissents. The dissenters held the view that additional monetary policy support is uncalled for and they remain concerned about future inflationary pressures. Charts 2-4 are telling exhibits that represent market assessment of future economic conditions.
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Tuesday, October 04, 2011
U.S. Treasury Bond Market Rally Strong Signal of Systemic Failure / Interest-Rates / US Bonds
By: Jim_Willie_CB
The USTreasury Bond rally over the last few months has been celebrated. Some call it a contradiction of the Standard & Poors debt downgrade of USGovt debt. Some hail the rally as proof that the USDollar remains respected as global reserve currency. Some regard it as a sign of bond market health in general. Some claim the US remains the safe haven. These are all errant views to the extreme, comments from cheer leaders to a system in deep deterioration, distractions from reality. The United States is stuck in a powerful recession, its huge federal deficits set to expand further, the fiscal austerity to be sacrificed, the turmoil in Europe rendering the US panorama more alluring and cute.
Tuesday, October 04, 2011
Operation Twist a Primer for QE3 Money Printing? / Interest-Rates / Quantitative Easing
By: Axel_Merk
Is Operation Twist a failure? The stock market plunged in disappointment when it was announced. Keynesians are tearing their hair out in frustration, as it appears the Fed failed to ramp up the printing press. Free marketers are disgusted by the blatant manipulation of the yield curve. A number of Federal Reserve (Fed) President Bernanke’s colleagues dissented and/or are voicing public opposition. However, as the dust settles, it appears there is a method to the twist: Bernanke may have a plan…
Monday, October 03, 2011
PIMCO Wrong as Bond Bears Plow Into U.S. Treasuries / Interest-Rates / US Bonds
By: Mike_Shedlock
Bill Gross at Pimco has had a change of heart. Bloomberg reports Bond Bears Piling Into Treasuries as Yield Forecasts Cut by Most Since ’09
Read full article... Read full article...Eight months ago Bill Gross, manager of the world’s biggest bond fund, said Treasuries “may need to be exorcised” and cleaned them out of his $245 billion Total Return Fund. The company then used derivatives to bet against the debt in March.
Monday, October 03, 2011
If They Have a Gun To Their Heads, Do the Banks Lend? / Interest-Rates / Credit Crisis 2011
By: Submissions
Sam Houston writes: Here we are three years after the financial crisis of 2008. The banks got bailed out. Their junk mortgages now sit on the balance sheet of the Federal Reserve. In exchange the Fed gave them face value in cash for their junk. Where did they get the cash? They created it out of thin air of course.
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Friday, September 30, 2011
Leider Mein Liebste; Its Spelt TALF Not TARP: Next ECB Will Print A Trillion Euros / Interest-Rates / Credit Crisis Bailouts
By: Andrew_Butter
Here’s an idea, if the Euro doesn’t exist anymore then the Greeks can pay back their Euro-denominated debts in imaginary money and everyone can live happily ever after?
Meanwhile; trust the Eurocrats to come up with a mind-baffling plan to kick the can down the road. It’s written in Deutchlitz which is what you get when you use a computer to translate a document originally written in German into French and from there you use another computer to translate that into an approximation of English. The words all spell on an English spell-checker but in aggregate anyone who speaks English hasn’t got a clue what they mean. For example, from the ECB Data Warehouse we are provided with:
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Friday, September 30, 2011
Don't Get Suckered by the Bond Market 'Bubbleistas' / Interest-Rates / International Bond Market
By: Money_Morning
Keith Fitz-Gerald writes:
To hear the "bond bubbleistas" tell it, the bond market is poised to collapse the second interest rates start to rise.
But if you're thinking about dumping all of your bonds, you should think again.
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Friday, September 30, 2011
Fed Officials Voice Dissenting Opinions Again / Interest-Rates / US Interest Rates
By: Asha_Bangalore
Chairman Bernanke highlighted the gravity of the unemployment problem in the Q&A session in his speech after markets closed yesterday.
“This unemployment situation we have, the jobs situation, is really a national crisis,” We’ve had close to 10 percent unemployment now for a number of years and, of the people who are unemployed, about 45 percent have been unemployed for six months or more. This is unheard of.”
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Wednesday, September 28, 2011
Operation Twist, The Fed's Long Shot / Interest-Rates / US Bonds
By: Robert_Murphy
Last week the Fed announced "Operation Twist," in which the central bank will buy $400 billion of longer-dated Treasury securities while selling the same amount of shorter-dated Treasuries. This episode epitomizes everything that is wrong with the modern, statist view of money.
Wednesday, September 28, 2011
Greece Debt Crisis Keeps Getting Worse, ECB Will Inflate / Interest-Rates / Global Debt Crisis
By: Gary_North
"The politicians giveth, and the free market taketh away." ~ traditional saying that I just made up.
The Greek government is going to default on its interest payments to the bonehead European bankers and investors who thought that getting high interest rates on Greek debt was a great way to avoid suffering the low-interest rates on German government bonds. After all, Greece would pay interest in euros. No problem!
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Tuesday, September 27, 2011
Top 10 Most Extreme Monetary Policy Moves of 2011 / Interest-Rates / Credit Crisis 2011
By: CentralBankNews
Here's a listing of the top ten most extreme monetary policy moves in the year to date of 2011 (as judged by Central Bank News). To be sure, there's still another quarter of the year to go, and with heightened concerns about global growth and the ongoing European debt crisis the list could yet be expanded. But for now, let's look over some of the most extreme moves in the year so far in monetary policy:
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Tuesday, September 27, 2011
Governor Raskin's Remarks Contain Noteworthy Observations about Credit Markets / Interest-Rates / Credit Crisis 2011
By: Asha_Bangalore
Fed Governor Raskin’s comments today were largely devoted to soft and worrisome labor market conditions and a justification of the Fed’s unconventional policy actions. She also presented her views about credit availability pertaining to households and small businesses.
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Monday, September 26, 2011
Euro-zone Debt Crisis Contagion Has Spread / Interest-Rates / Global Debt Crisis
By: Capital3X
A chart is worth a thousand words and therefore we focus on charts and analysis. So with a few introductory words, we will present the charts.
The problem for the policy makers is that risk is being repriced faster than they counteract.The EU banking system is under-strain because they are being denied funding and also deposits are moving elsewhere. The speed of the adjustment is difficult for the banks to maintain their solvency. The confidence virus is a self-reinforcing one that requires an entity to backstop it just as the Fed did it during 2008. The under-capitalised EU banks are being required to de-leverage faster than they can re-capitalise.
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Monday, September 26, 2011
FED’s Adjusted Monetary Base / Interest-Rates / US Debt
By: Tony_Caldaro
When the FED started increasing the monetary base exponentially in 2008 we started tracking its growth in Elliott Wave terms. Our first piece on this topic was published in November 2010: http://caldaro.wordpress.com/2010/11/29/feds-adjusted-monetary-base/. Then, we expected the monetary base to bottom just under $2 tln and expand to $2.5 tln in the coming months. We followed that piece with an update in April as the base was reaching the targeted level: http://caldaro.wordpress.com/2011/04/01/feds-adjusted-monetary-base-2/. This weekend, with the current economic situation in mind, we reviewed the FED’s recent chart to determine if it could provide any clues of another Quantitative Easing program in the near future. It did, and more!