Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.Monday, April 26, 2010
Rising Interest Rates Right Around the Corner! Protect Yourself NOW! / Interest-Rates / US Interest Rates
Benjamin Franklin once called death and taxes the only certainties in this world. These days, I’d add rising interest rates!
I believe they’re coming … that the Federal Reserve is powerless to stop the inevitable … and that investors need to take protective action immediately.
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Monday, April 26, 2010
U.S. Treasury Bonds Stay Long and Earn the Carry! / Interest-Rates / US Bonds
The bond market successfully chopped sideways last week. Inflation data on both sides of the border remains supportive in spite of the hawkish tone from the Bank of Canada meeting last week. The busy supply agenda continues to counterbalance the positive fundamentals as another record amount of supply (close to $130 Billion) is scheduled for auction during the next week. The continuing positive tone in commodities and equities still can’t seem to put any sustained pressure on rates to rise.
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Sunday, April 25, 2010
U.S. Treasury Bond TBT Upside Potential / Interest-Rates / US Bonds
CHICAGO -- Regulators shut down seven Illinois banks Friday, bringing this year's tally of failed U.S. banks and thrifts to 57. The Federal Deposit Insurance Corp. found buyers for all of the failed institutions, and the failed banks' branches were all expected to reopen Saturday.Read full article... Read full article...
Sunday, April 25, 2010
Greek Debt Crisis: Lehman 2.0? / Interest-Rates / Global Debt Crisis
As if Greece did not already have enough problems. The market was already jolted by the Goldman SEC case. Then, it was the cloud of volcanic ash from Iceland postponed a key meeting with European Union (EU) and International Monetary Fund (IMF) officials on aid for the country.
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Saturday, April 24, 2010
EXTEND and PRETEND, Is the U.S. Facing a Cash Crunch? / Interest-Rates / Credit Crisis 2010
The US Government is caught in a cash vise and is being squeezed between too slow a rebound in tax revenues and the limitations on how quickly it can realistically take its funding requirements to the US Treasury auction. The US Treasury was saved in March by what the government reports as “proprietary receipts”. Those receipts require an explanation that is not well publicized since it begs the question of what happens next month without the $117 BILLION journal entry.
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Friday, April 23, 2010
How the Banks Print Their Money / Interest-Rates / US Interest Rates
Gosh! Banks print money, bleeding tax-payers and savers for ink...
RESCUING THE BANKS was supposed to be about saving the savers.
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Friday, April 23, 2010
U.S. Government Deficit Spending Debt, We’re All Comrades Now / Interest-Rates / US Debt
David Galland, Managing Editor, The Casey Report writes : To ascertain what move the government is most likely to take next, we must first assess the probabilities.
In order to do that, we start by restating the central question, “How does the U.S. government spend, spend, spend (a minimum of $10 trillion in red ink over the next decade) and yet maintain today’s historically low interest rates?”
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Friday, April 23, 2010
Are Interest Rate Derivatives a Ticking Time Bomb? / Interest-Rates / Credit Crisis 2010
Derivatives are the world's largest market, dwarfing the size of the bond market and world's real economy.
The derivatives market is currently at around $600 trillion or so (in gross notional value).
In contrast, the size of the worldwide bond market (total debt outstanding) as of 2009 was an estimated $82.2 trillion.
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Friday, April 23, 2010
Greek Bond Market Crash, Greece Budget Deficit Worse Than Feared / Interest-Rates / Global Debt Crisis
With Thursday's admission that Greece's budget gap is worse than expected, CDS rates on Greek debt rose to new highs, and Greek bond crashed.
Charts follow a discussion of articles in the news.
Thursday, April 22, 2010
U.S. Treasury Bonds Nowhere To Go But Down / Interest-Rates / US Bonds
"It is better to do thine own duty, however lacking in merit, than to do that of another, even though efficiently. It is better to die doing one's own duty, for to do the duty of another is fraught with danger." ~ Bhagavad Gita, BC 400-, Sanskrit Poem Incorporated Into the Mahabharata
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Thursday, April 22, 2010
This is Important.. U.S. Treasury Bonds Reach Critical Level / Interest-Rates / US Bonds
If is wasn't so important, I wouldn't mention it a second time. But it is very important, and could be a "game changer" if we break above this long term resistance in the next few weeks ... so, please keep an eye on it.
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Monday, April 19, 2010
Global Financial Maelstrom Continues, Government Policies of Insolvency / Interest-Rates / Global Debt Crisis
The global financial maelstrom continues to unfold as public serpents, central banks and crony capitalists continue to pour gas on the fires. It is set to continue. The collapse of FIAT paper wealth storage is unfolding with breathtaking speed. Asset bubbles continue to emerge in the emerging world and collapse in the developed world as capital FLEES. Today’s missive covers the deep insolvencies in the developed world and the definitions of solvency of Austrian Economics. The inflationary depression still lies in our futures.
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Monday, April 19, 2010
Global Bond Market Crash to Drive Gold / Interest-Rates / International Bond Market
The gold market has been heating up and conditions are moving into an alignment which is ideal for a gold price rally this year. Fear and uncertainty will drive the price northwards even if the current CTFC saga does not eventuate in immediate disciplinary action or regulatory change.
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Monday, April 19, 2010
14 Risks of Holding U.S. Government Treasury Bonds / Interest-Rates / US Bonds
When AT&T, California, New York City or virtually any other borrower wants your money and offers its bonds for sale, it’s required to give you a prospectus that properly discloses all the relevant risks.
It has a legal obligation to tell you about any material weakness, hidden liabilities or contingencies that could diminish your chances of getting paid in full.
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Saturday, April 17, 2010
Trying to Beat the Rate of Inflation With Your Savings? / Interest-Rates / Inflation
What the New York Times can't even see in today's record-low bank interest rates...
LESTER BANGS getting loaded on speed, brandy and casual violence...throwing empty bottles down onto the street and assaulting a good friend's long-time partner...before reviewing Lou Reed's Metal Machine Music...
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Friday, April 16, 2010
The Bear Potential of UK Government Bonds Gilts / Interest-Rates / UK Debt
We have been and remain strong bears of the US TNote. But the immediate election notwithstanding, the UK Gilts too appear to be setting themselves up nicely for the bears…
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Friday, April 16, 2010
Debt Crisis Worries Shift To Portugal; Greece Borrowing Rates Back Near Highs / Interest-Rates / Global Debt Crisis
Concern over Portugal has now hit the front page as noted by the New York Times in Debt Worries Shift to Portugal, Spurred by Rising Bond Rates
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Thursday, April 15, 2010
Higher Rates are Foreboding Inflation / Interest-Rates / US Interest Rates
I know we were all told that it was not supposed to happen, but interest rates are rising on both U.S. government debt and mortgages. Fortunately for investors, market forces are not subjugated by media’s groupthink. Therefore, I was able to predict and profit from this nascent move up in rates, despite being vilified by those who told me that rates had already priced in the removal of government support.
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Wednesday, April 14, 2010
Fed Moves $421.8 Billion Without Warning, Is the Fed Bailing out Greece? / Interest-Rates / Credit Crisis 2010
The St. Louis Federal Reserve Bank, which documents the inner workings and balance sheets at the nation's central bank, just released new research and data suggesting that the Federal Reserve lent $421.8 billion – with no one knowing exactly where it went.
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Wednesday, April 14, 2010
Have We Entered A Treasury Bond Bear Market? / Interest-Rates / US Bonds
Sharon A. Daniels writes: Bond investors were poised to hit the panic button last week … nervously watching as yields on 10-Year U.S. Treasury bonds briefly pierced the 4 percent level for the first time in well over a year.
Their concerns are understandable. After all, the threat of rising rates has been hanging over fixed-income markets ever since the Fed began printing money at hyper-speed during the financial crisis. And the fears haven’t subsided.
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