Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Friday, June 20, 2008
Fed Uses Self Created Credit Crisis to Grab Power / Interest-Rates / Market Regulation
By: Peter_Schiff
Throughout history, governments have always used crises to justify blatant power grabs. Often the crisis subsides, but the expanded government powers remain. In America this week, the tendency came into sharp focus. Congress signaled that it is preparing to perpetuate the Bush Administration's domestic wiretapping program, and has even abandoned the pretense that warrantless surveillance be confined to terrorism. Similarly, even though our financial crisis has yet to reach full flower, Treasury Secretary Paulson announced plans to give the Federal Reserve new and explicit powers to oversee and regulate the financial services industry. However, a sober look at his plan reveals that it is tantamount to giving the fox complete autonomy to guard the henhouse. Read full article... Read full article...
Thursday, June 19, 2008
Bernanke's Interest Rate Headache / Interest-Rates / US Interest Rates
By: Alex_Wallenwein
The Euro vs Dollar Currency War is back on the front burner. For years, it used to be a cold war, but now it's hot again – and Bernie can't take the heat; it gives him headaches.
Poor Bernie.
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Thursday, June 19, 2008
More Power for the Fed as the Central Bank Cooks the Books / Interest-Rates / Central Banks
By: Mike_Shedlock
Mercury news is reporting Administration calls for giving Fed more powers . Treasury Secretary Henry Paulson says the government must move quickly to give the Federal Reserve more powers to regulate the financial system. Paulson said today that the central bank's powers should be expanded in the wake of the near collapse earlier this year of Bear Stearns, the giant Wall Street investment firm.
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Tuesday, June 17, 2008
How to Drive Commodity Prices Even Higher / Interest-Rates / US Interest Rates
By: Tim_Iacono
Let's see, the last two rising asset classes didn't really transform into bubbles until the Fed started raising interest rates - I'm warming up to the idea of a higher Fed funds rate.Read full article... Read full article...
Tuesday, June 17, 2008
Treasury Market Takes a Pounding, Dropping to New Lows for 2008 / Interest-Rates / US Bonds
By: Levente_Mady
The Treasury market dropped to new lows for 2008 last week. The drumbeat of inflation concerns just became a little louder not only in the USA but also internationally. Oil and its surrogates keep trucking up to new highs and corn is certainly keeping pace with them. Central Banks are talking tough but until I actually see the Fed raise rates, I remain a skeptic as to how much they are really willing to do in order to reign in the runaway commodity inflation. Although I fully believe in peak oil, I also figure that the ongoing slowdown in the global economy coupled with surprising progress in the alternative energy space will eventually reign in the present energy price problems.Read full article... Read full article...
Tuesday, June 17, 2008
Central Banks Clash Over Monetary Policy / Interest-Rates / Money Supply
By: Mike_Shedlock
Food and energy prices are soaring everywhere. Eurozone inflation is a record 3.7% Inflation in the eurozone has a climbed to a record level amid higher food and fuel costs, official figures show. The annual rate of inflation in the 15 state zone hit 3.7% in May, according to the Eurostat statistical office.
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Monday, June 16, 2008
Credit Crisis Not Over, as Banks Hoard Cash / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
In contrast to Bernanke's foolish comment "risk of substantial downturn has faded" (see Things That Have Not Yet Happened ) the Bank of England sees things differently.Read full article... Read full article...
Sunday, June 15, 2008
Credit Crisis Crushing UK Banks / Interest-Rates / Credit Crisis 2008
By: Nadeem_Walayat
Many commentators in the mainstream have in recent weeks begun voicing the opinion that the credit crisis may be over or the worst of the crisis is behind us -
Jim Reid, a credit strategist at Deutsche Bank, said: "This is a further sign that the actual credit crisis is easing. Anything that is not complete seizure is encouraging." on news of the HBOS £500 mortgage securitisation deal.
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Sunday, June 15, 2008
Bernanke's Strategy of Re-flation to Ignite Economic Growth / Interest-Rates / US Bonds
By: Mick_Phoenix
Welcome to the Weekly Report. Let me take you on a journey to explain what Ben Bernanke said and why he said it. We look at yields, what they are telling us and why we should listen. Finally we show evidence that the carry trade is crumbling. You will require a hot beverage, peace and quiet and probably a light snack. Read full article... Read full article...
Sunday, June 15, 2008
Central Bankers Finally Tightening the Interest Rate Screws on Inflation / Interest-Rates / Inflation
By: Money_and_Markets
Mike Larson writes: Believe it or not, it's finally happening. It's dawning on Federal Reserve policymakers ... and on many other global central bankers from Canada to Asia to Europe ... and beyond. The "it" they're starting to accept?
It's time for tighter monetary policy.
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Friday, June 13, 2008
ECB Calls Bernanke’s Bluff on Defending the US Dollar / Interest-Rates / US Interest Rates
By: Gary_Dorsch
A new member of the British Parliament once solicited the advice of Benjamin Disraeli, the nineteenth century British prime minister, on whether he should speak up on a controversial issue. “Do you have anything to say that has not already been said?” Disraeli asked him. “No,” the man conceded. “I just want the people whom I represent, and the members of Parliament to know that I participated in the debate.” Read full article... Read full article...
Thursday, June 12, 2008
Standard & Poor's Cuts Ratings on 65 classes of Alt-A Securities / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
In a completely expected move (at least in this corner) is yet another S&P downgrade in Alt-A mortgage backed securities .June 11, 2008-Standard & Poor's Ratings Services today lowered its ratings on 65 classes from 19 residential mortgage-backed securities (RMBS) transactions backed by U.S. Alternative-A (Alt-A) mortgage loan collateral issued in 2006.
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Thursday, June 12, 2008
LIBOR Leading Indicator for End of the Credit Crisis and Banking Fiasco / Interest-Rates / Credit Crisis 2008
By: Keith_Fitz-Gerald
How will we know the credit crisis and banking fiasco are truly over?
We won't.
But there's a damn good indicator that will show us the way - the London Interbank Offer Rate , usually referred to as LIBOR.
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Thursday, June 12, 2008
Bernanke Declares Worst of Credit Crisis is Over Before Tsunami Wave Hits / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
I have been staring in amusement at Bernanke's latest proclamation: Danger of downturn appears to have faded . Despite a recent spike in the nation's unemployment rate, the danger that the economy has fallen into a "substantial downturn" appears to have waned, Federal Reserve Chairman Ben Bernanke said Monday.
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Tuesday, June 10, 2008
US Treasury Curve Steepening Bet Blows Sky High / Interest-Rates / US Bonds
By: Mike_Shedlock
Treasury spreads between the 2 year treasury and the 30 year long bond exploded today. This in and of itself is not unusual. However, the way that it happened today was indeed very unusual.Read full article... Read full article...
Monday, June 09, 2008
ECB Signals Hawkish Tone on European Interest Rates as Inflation Soar / Interest-Rates / Euro-Zone
By: Victoria_Marklew
As expected, the European Central Bank (ECB) left its refi rate at 4.0% again last Thursday. What was not expected was the hawkish tone of the subsequent statement and the press briefing from President Trichet. He noted that the Governing Council had a "deep discussion" (trans: "fierce debate"?) and remains "in a state of heightened alertness." Some members apparently wanted a rate hike this month but the consensus was to hold. The President then noted that the Council may decide to make "a small hike" at the July 3 meeting in order to anchor inflation expectations. Read full article... Read full article...
Monday, June 09, 2008
Buy Yield Curive Steeping- Buy Short-term Bonds, Sell Long-term, Bonds / Interest-Rates / US Bonds
By: Levente_Mady
The Treasury market was under pressure most of last week. Then on Friday, with major help from exploding energy prices, the bond market soared as yields across the yield curve dropped significantly. I suppose a pop in the Unemployment Rate from 5% to 5.5% may have helped bonds a little as well. Early in the week our tragic hero Doctor Ben of the Bernanke and Federal Reserve variety told the financial world and anyone else who wanted to listen that the Fed was most certainly done cutting rates and emphatically supports the Treasury's stronger dollar policy. Read full article... Read full article...
Sunday, June 08, 2008
Greenspan Interest Rate Conundrum In Reverse / Interest-Rates / US Housing
By: Mike_Shedlock
There was an interesting chart in the New York Times article Shrinking Lines of Credit . The fact that home lines of credit are shrinking is not really news, nor is the fact that mortgage rates are stubbornly high. I have talked about both of those on many occasions.
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Sunday, June 08, 2008
Signs of the End for Fed US Interest Rate Cuts Are Everywhere / Interest-Rates / US Interest Rates
By: Donald_W_Dony
With inflationary pressures coming out of Pandora's box again, and largely fueled by soaring crude oil prices, is it any wonder that the Fed has stated in its last FOMC meeting in late April that this rate cut was "a close call" and that "any future rate deductions will be closely reviewed". The talk now, coming from Mr. Bernanke, is concern surrounding the low level of the U.S. dollar and inflation. So as the shift in direction has moved 180 degrees from providing stimulus to the financial markets and preventing a recession from taking root to inflation and currency protection. But were there signs of this new direction earlier in the market? From an intermarket perspective, there were plenty of clues by April. Read full article... Read full article...
Saturday, June 07, 2008
Next Phase of the Credit Crisis to Hit Credit Default Swaps $62 Trillion Market / Interest-Rates / Credit Crisis 2008
By: F_William_Engdahl
While attention has been focused on the relatively tiny US „sub-prime“ home mortgage default crisis as the center of the current financial and credit crisis impacting the Anglo-Saxon banking world, a far larger problem is now coming into focus. Sub-prime or high-risk Collateralized Mortgage Obligations, CMOs as they are called, are only the tip of a colossal iceberg of dodgy credits which are beginning to go sour. The next crisis is already beginning in the $62 TRILLION market for Credit Default Swaps. You never heard of them? It's time to take a look, then. Read full article... Read full article...