Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.Monday, July 27, 2009
Real U.S. Treasury Yields Highest In History / Interest-Rates / US Interest Rates
Bloomberg is reporting Real Yields Highest Since 1994 Aid Record Debt Sales.
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Sunday, July 26, 2009
Darling Warns UK Banks on Loan Interest Rates / Interest-Rates / UK Interest Rates
The Chancellor, Alistair Darling is "Extremely concerned" at the high interest rate being charged to small firms.
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Friday, July 24, 2009
How to Profit if Bernanke's Quantitative Easing 'Exit Strategy' Fails / Interest-Rates / Quantitative Easing
By Jason Simpkins writes: After more than a year of lax monetary policy and direct capital infusions, U.S. Federal Reserve Chairman Ben S. Bernanke has finally outlined an "exit strategy" that he says will lead to the "smooth and timely" withdrawal of monetary stimulus and keep inflation at bay.
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Thursday, July 23, 2009
How California Could Turn its Debt IOUs into Dollars / Interest-Rates / US Debt
Ellen Brown writes: California has over $17 billion on deposit in banks that have refused to honor its IOUs, forcing legislators to accept crippling budget cuts. These austerity measures are unnecessary. If the state were to deposit its money in its own state-owned bank, it could have enough credit to solve its budget crisis with funds to spare.
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Wednesday, July 22, 2009
Shorting U.S. Treasury Bonds / Interest-Rates / US Bonds
The bond, TLT, TBT charts and technicals are urging me to get short the long end of the yield curve...looking for longer term rates to climb in the days ahead. My near-term work in the ProShares UltraShort 20+ Year T-Bond ETF (NYSE: TBT) argues that the upmove off of the July lows at 48.01/05 exhibits very bullish form, in the aftermath of the completion of a major correction from the 6/10 high at 59.97 into the July lows.
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Wednesday, July 22, 2009
Bernanke Revealing Statement on Accommodative Monetary Policy / Interest-Rates / Quantitative Easing
In my article entitled “Case against Hyperinflation” dated June 30th 2009, I attempted to explain, in very broad brush terms, how the Fed might head hyperinflation off at the pass. It fell short of what Bernanke outlines in his article but, thankfully, not so short as to be an embarrassment to me J. Clearly, Bernanke believes he is on top of what he is doing. From a different perspective it might be a serious mistake to predicate one’s investment strategies on the base assumption that Bernanke is an intellectual hunchback who doesn’t understand what he is about.Read full article... Read full article...
Monday, July 20, 2009
US Treasury Bonds Still Heading Lower / Interest-Rates / US Bonds
In our last update for the US Treasury Bonds (click here to view), we could observe a downward reversal in Treasury bonds. This downtrend has gained momentum during the last days, especially in the 30 year US Treasuries. The following chart was send to subscribers on July 15th:
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Thursday, July 16, 2009
Background Info on Leading Bond Market ETFs / Interest-Rates / Exchange Traded Funds
We find that investors tend to have a clearer understanding of the portfolios behind equity funds than behind bond funds. This blog post is provided to shine some light in a comparative way on the portfolios and recent performance of several leading bond ETFs.
To be clear, we are not recommending any particular asset allocation or fund in this post — just providing background information that may be helpful in a general way.
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Thursday, July 16, 2009
California's Debt Crisis as Bond Holders Lose Confidence in the States Ability to Repay / Interest-Rates / US Debt
Bad for the Goose, Worse for the Gander - Last week, major banks announced they would no longer offer cash for the IOU's written by the state of California. At the same time, China proposed that the U.S. dollar be replaced as the world's official reserve currency. Although seemingly unrelated, these two developments have at their root the same issue: uneasy creditors.
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Sunday, July 12, 2009
Fed Gets It Wrong, Credit Crisis Losses Rising Everywhere / Interest-Rates / Credit Crisis 2009
Mike Larson writes: Remember when policymakers at the Federal Reserve told us in 2007 and 2008 that the credit problems were “contained” to the subprime mortgage sector? Or when then-Treasury Secretary Henry Paulson spouted the same line?
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Friday, July 10, 2009
US Treasury Bonds Retracement, But Still Bullish / Interest-Rates / US Bonds
Desperate bond bears got their retracement in the 30 year treasury bond yesterday, as it gave back some of the huge gains of the last days. However, this does not change the bullish picture that can be observed when looking at the short and intermediate term charts.
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Friday, July 10, 2009
Rising Interest Rates, the Governments Worst Nightmare / Interest-Rates / US Debt
Brian Hunt writes: The government's worst nightmare is off the table for now.
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Friday, July 10, 2009
How to Earn 18% Interest From the Government / Interest-Rates / US Bonds
Dr. Steve Sjuggerud writes:
Here in Florida, counties are desperate for money...
Where I live on the Florida Coast, the main source of county government revenue is property taxes. The problem is, more people than ever are not paying their property taxes.
Thursday, July 09, 2009
Fixed Mortage Interest Rates Still Rising / Interest-Rates / Mortgages
The cost of fixed rate mortgages continues to rise, even though swap rates have continued to fall during the past month.Read full article... Read full article...
Thursday, July 09, 2009
Irrelevant UK Base Interest Rate on Hold as Real Rates have Already Begun to Rise / Interest-Rates / UK Interest Rates
The Bank of England is expected to keep UK interest rates on hold at 0.5% today for a fourth month. However the deep interest rate cuts have failed to lift the economy out of recession, hence the reason why the Bank of England has detonated the monetary policy equivalent of a nuclear bomb in the form of Quantitative Easing, printing £125 billion of electronic money primarily to monetize government debt to help finance the huge annual budget deficit that is mushrooming towards £180 billion for 2009 alone by artificially keeping longer term interest rates lower.
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Wednesday, July 08, 2009
The True Cost of 0.25% Interest Rate / Interest-Rates / US Interest Rates
"Hey! If banks won't lend at low-to-zero rates of interest, maybe we should try sub-zero rates instead..."
IT'S NO BIG DEAL at present – only about $200 in fact.
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Tuesday, July 07, 2009
California Bankrupt, If You Live in California, Here's What You Do... / Interest-Rates / US Bonds
Dr. Steve Sjuggerud writes: Would you lend money to someone who is completely broke and in a mountain of debt... and only demand 3.75% interest?
That's what California is forcing many people to do today.
Monday, July 06, 2009
Monster U.S. Treasury Bond Supply, a Game Changing Event? / Interest-Rates / US Bonds
For the US Treasury bond market it’s time for some reflection. What we have in front of us could be “game-changing.” This, from a June 7 Bloomberg essay entitled, Treasury’s Summer Rally Not This Year Due to Supply:
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Sunday, July 05, 2009
Treasury Bonds, Not the Time to Become a Bear (yet) / Interest-Rates / US Bonds
Despite all hyper-inflation scenarios that can be read about in almost every financial newspaper and market commentary nowadays, the 30 year Treasury Bond (ZB September 09) has been in a steady uptrend for quite a while now, advancing from a low of 111'215 on 6/11/09 to a high of 119'095 this past week.
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Friday, July 03, 2009
Negative Global Interest Rates, Sweden Cuts Deposit Rate to NEGATIVE .25% / Interest-Rates / Deflation
There has been a lot of ludicrous recommendations recently to combat deflation by making deposit rates negative. I did not think any central bank would be dumb enough to try it. I thought wrong.
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