Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Friday, March 11, 2016
ECB Panic Money Printing to Save Euro-zone from Economic Collapse as BrExit Looms / Interest-Rates / Negative Interest Rates
By: Nadeem_Walayat
A little over a month on from the Bank of Japan's panic announcement of negative interest rates and money printing. Now it's the turn of the ECB to PANIC by firing it's own inflation bazooka in what is commonly termed as the currency wars (competitive devaluations) as nations attempt to import inflation and export deflation by means of manipulating exchange rates. This weeks ECB PANIC followed euro-zone inflation turning negative again (CPI -0.2%) and with virtually the whole of southern europe in a permanent economic depression, with debt mountains continuing to balloon in a perpetual state of imminent bankruptcy of the whole of southern europe as ALL central banks ONLY really have ONE objective which is to INFLATE debt mountains away for which they CREATE INFLATION by means of MONEY PRINTING and so without inflation the debt cannot be serviced.
Tuesday, March 08, 2016
U.S. Treasury Shorts Pounded into the Ground / Interest-Rates / US Bonds
By: Anthony_Cherniawski
This has got to be a decline for the records. There is nothing else like it in this chart. The treasury shorts are getting nailed.
ZeroHedge reports, “Over the past week we have been following a disturbing development in the US Treasury market: while the repo rate on the 10Y has been sliding deep into negative territory for a while, on Friday it finally hit the "fails charge" of -3.00%, suggesting there is a massive shortage of Treasury paper as a result of wholesale shorting by various market participants.
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Saturday, March 05, 2016
More and More Fed Officials Calling For NIRP / Interest-Rates / US Interest Rates
By: Graham_Summers
The Fed Vice-Chair has begun laying the groundwork for NIRP.
The US Federal Reserve is obsessed with market reactions to its policies. Because of this, anytime the Fed plans to announce a major change in policy, it preps the markets via numerous leaks and hints… oftentimes for months in advance.
An excellent example of this concerns the Fed’s decision to taper QE back in 2013.
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Saturday, March 05, 2016
Financial Repression - Margin Rules Changes Force New Private Funding of Public Debt / Interest-Rates / US Debt
By: Gordon_T_Long
FRA Co-Founder Gordon T. Long and Dan Amerman have an in-depth conversation covering various topics such as Financial Repression, Quantitative Easing, devious actions of the Fed and much more.
Read full article... Read full article...Daniel R. Amerman is a Chartered Financial Analyst, author, and speaker, with BSBA and MBA degrees in Finance, and over 30 years of professional financial experience. As an investment banking vice president in the 1980s he did groundbreaking work in the security originations and asset/liability management areas, including CMO/REMIC originations as part of portfolio restructurings for financial institutions, as well as the creation of synthetic securities for institutional clients. As an independent quantitative analyst in the 1990s and 2000s, he structured mortgage-backed bond financing and provided analytical services for real estate acquisitions by multifamily and commercial real estate owners, investment banks, and tax-exempt issuers.
Friday, March 04, 2016
Short Squeeze in Treasuries? / Interest-Rates / US Bonds
By: Anthony_Cherniawski
Day 43 came and went with a small throw-over of the trendline at the close. This final thrust made 21 waves (an impulse) from 1931.88 to today’s close, so I don’t see how they can add any more waves to it.
The normal amount of time in a counter-trend rally is 21 days in a bear market, and often much shorter. Today is day 21 from the February 11 low, so it appears to have fulfilled the time requirement. One of my Swing Models suggested February 26 would give us the turn, but it is now 6 calendar days overdue. Since tomorrow is 4.3 market days from my projected “swing high,” I had originally suggested that tomorrow would be the first low of the decline. I will eat crow over that call.
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Thursday, March 03, 2016
Fed Stuck Between Hard Place and a Grenade / Interest-Rates / US Interest Rates
By: Sol_Palha
He who trims himself to suit everyone will soon whittle himself away. Raymond HullThe Fed is stuck in between a hard place and a grenade, given this option, they will choose the hard place as unless you are looking for a one-way to ticket to nowhere you won’t choose the grenade. The Fed has nowhere to go; there is only one option available inflate the money supply or die trying to.
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Thursday, March 03, 2016
How Does Sam Afford to Buy So Much Stuff? / Interest-Rates / US Debt
By: MISES
Mark Brandly writes: Lately, I’ve wondered how my neighbor, Sam, affords to buy so much stuff. He appears to have an unlimited budget. When I asked him about this, Sam asked, “Do you think I’m spending too much?”
“That depends,” I said, “How much money do you make?”
“I take home $100,000 a year.”
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Wednesday, March 02, 2016
Understanding the Federal Reserve’s Shell Game / Interest-Rates / US Federal Reserve Bank
By: MISES
Dan Sanchez writes: The Federal Reserve is a key component of the American Transfer State. Under the guise of “macroeconomic management,” it redistributes vast amounts of wealth on an ongoing basis through inflation. The victims of these transfers are ordinary Americans. The beneficiaries are the government and its elite cronies.
Monday, February 29, 2016
Irish Bonds Fall as Election Creates Political and Economic Uncertainty / Interest-Rates / International Bond Market
By: GoldCore
Irish bonds fell today and the yield on ten-year Irish bonds rose to 0.908 pc, up from 0.891 pc in early trading this morning after a divisive general election and inconclusive result threw Irish politics into disarray and created considerable political and economic uncertainty.
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Sunday, February 28, 2016
The Fed is Working to Implement NIRP / Interest-Rates / NIRP
By: Graham_Summers
The Fed Vice-Chair has begun laying the groundwork for NIRP.
The US Federal Reserve is obsessed with market reactions to its policies. Because of this, anytime the Fed plans to announce a major change in policy, it preps the markets via numerous leaks and hints… oftentimes for months in advance.
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Thursday, February 25, 2016
Central Banks Should Stop Paying Interest on Reserves / Interest-Rates / Central Banks
By: MISES
Brendan Brown writes: In 2008, the Federal Reserve began paying interest on reserve balances held on deposit at the Fed. It took more than seven decades from the US leaving the gold standard — in 1933 — for the fiat regime to do this and thus revoke a cardinal element of the old gold-based monetary system: the non-payment of any interest on base money.
Tuesday, February 23, 2016
The Fed's Nightmare Scenario / Interest-Rates / US Federal Reserve Bank
By: Peter_Schiff
Operating under the mistaken belief that a modest dose of inflation is either a prerequisite for, or a by-product of, economic growth, the nation's top economists have been assuring us for quite some time that inflation will stay very low until the currently mediocre economy finally catches fire. As a result, they believe that the low inflation of the past few months has frustrated Federal Reserve policy makers, who have been supposedly chomping at the bit to keep hiking rates in order to restore confidence in the present and to build the ability to cut rates in the future if the nation were to ever, god forbid, enter another recession.
Monday, February 22, 2016
Are Asian Central Bankers Even Crazier Than Our Own? / Interest-Rates / Central Banks
By: Raul_I_Meijer
That the world’s central bankers get a lot of things wrong, deliberately or not, and have done so for years now, is nothing new. But that they do things that result in the exact opposite of what they ostensibly aim for, and predictably so, perhaps is. And it’s something that seems to be catching on, especially in Asia.
Now, let’s be clear on one thing first: central bankers have taken on roles and hubris and ‘importance’, that they should never have been allowed to get their fat little greedy fingers on. Central bankers in their 2016 disguise have no place in a functioning economy, let alone society, playing around with trillions of dollars in taxpayer money which they throw around to allegedly save an economy.
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Friday, February 19, 2016
Rising U.S. Interest Rates? Never Mind / Interest-Rates / US Interest Rates
By: John_Rubino
It was always a matter of when, not if, the financial markets would tell the Fed to stop raising interest rates. And it appears the message has been received:
Friday, February 19, 2016
Marc Faber Warns “They Will Bankrupt the World!” / Interest-Rates / Global Debt Crisis 2016
By: Gordon_T_Long
Dr. Marc Faber joins FRA Co-founder Gordon T. Long in an exciting discussion of monetary malpractice, negative interest rates, the influence of current geopolitical risk and much more. Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics.
Thursday, February 18, 2016
The U.S. Ban on Cash Has Already Begun / Interest-Rates / War on Cash
By: Graham_Summers
The Central Banks hate physical cash. So much so they there will likely try to ban it in the near future.
You see, almost all of the “wealth” in the financial system is digital in nature.
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Wednesday, February 17, 2016
U.S. Banks Ready for Negative Interest Rates? / Interest-Rates / Credit Crisis 2016
By: BATR
The test run proved that negative interest rates can push savers into minus territory. Public outrage, while registered is not heard by the central bankers. The reasoning that commercial banks will start making loans because of the cost of sitting on deposits is pure fantasy thinking. As the article, Low Interest Rates Impoverish Savers shows,
“How long will people accept this thief? The options to parking cash in hand with a FDIC insured institution seems worth an examination. However, few alternatives for working class savers exist. Surely, this occurrence is intentional because the real objective of the "New Normal" is to bankrupt Middle America. What other conclusion makes sense?”
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Tuesday, February 16, 2016
Has Chicago Reached Debt Boiling Point? / Interest-Rates / US Debt
By: Rodney_Johnson
In the 1890s Charles Dana, editor of the New York Sun, referred to Chicago as the “Windy City.” Chicago was one of many cities competing to host the World’s Fair, and clearly the writer intended the double entendre to apply to the city’s weather as well as its mouthy politicians.When it comes to Chicago’s weather, anyone who has visited “Chi-town” (as the city is known in CB-lingo) can attest to the screaming wind off of Lake Michigan. It howls for what seems like days at 40 mph, carrying with it sub-zero temperature in the winter.
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Tuesday, February 16, 2016
Why Negative Interest Rates Will Fail / Interest-Rates / Financial Crisis 2016
By: Frank_Hollenbeck
It is now just a matter of time before the US central bank follows the central banks of Japan, the EU, Denmark, Sweden and Switzerland in setting negative rates on reserve deposits.
The goal of such rates is to force banks to lend their excess reserves. The assumption is that such lending will boost aggregate demand and help struggling economies recover. Using the same central bank logic as in 2008, the solution to a debt problem is to add on more debt. Yet, there is an old adage: you can bring a horse to water but you cannot make him drink! With the world economy sinking into recession, few banks have credit-worthy customers and many banks are having difficulties collecting on existing loans.
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Monday, February 15, 2016
Devalue or Die; Negative Interest Rate Wars Have Begun / Interest-Rates / Currency War
By: Sol_Palha
Don't part with your illusions. When they are gone, you may still exist, but you have ceased to live.
Mark Twain
Tuhe “devale or die” currency wars are picking up steam; Japan’s central bankers are not alone when it comes to taking rates into negative territory. A host of European nations are now joining the bandwagon, and the latest victim is Sweden. We alluded to this development a long time ago and published a host of articles on this topic. Central bankers Worldwide understand that the only driving force behind the magical recovery in the U.S s hot money and that is the only weapon that can maintain that illusion. Get ready for negative rate wars; imagine having to pay the banks to keep your money; soon people will start to question the value of banks.
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