Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Sunday, May 24, 2015
Mario Draghi’s Slippery Downward Slope / Interest-Rates / ECB Interest Rates
By: Raul_I_Meijer
Mario Draghi made another huge faux pas Thursday, but it looks like the entire world press has become immune to them, because it happens all the time, because they don’t realize what it means, and because they have a message if not a mission to sell. But still, none of these things makes it alright. Nor does Draghi’s denying it was a faux pas to begin with.
And while that’s very worrisome, ‘the public’ appear to be as numbed and dumbed down to this as the media themselves are -largely due to ’cause and effect’, no doubt-. We saw an account of a North Korean defector yesterday lamenting that her country doesn’t have a functioning press, and we thought: get in line.
Read full article... Read full article...
Saturday, May 23, 2015
Are We in Another Credit Bubble? And Is It Different than Before? / Interest-Rates / US Debt
By: EWI
Part 1 of our FREE report on the recent build-up in credit includes a chart of U.S. corporate debt issuance since 1998 you don't want to miss
Whatever your politics, creed or nationality -- we can all agree that a huge catalyst for the 2008-9 global financial meltdown was the universal binge of bad credit.
A huge part of that bad-debt pile were the "don't-ask-don't-tell" high-yield bonds -- a.k.a. junk bonds -- which were used to fund a lot of things, including corporate takeovers.
Read full article... Read full article...
Saturday, May 23, 2015
Yellen Interest Rate Hike If Economy Improves....Really? / Interest-Rates / US Interest Rates
By: Jack_Steiman
I didn't know that already? Fed Yellen made sure she reminded us today of this reality. A bad economy means no rate hikes and a good means there will be. I'm glad I understand things better now. So if we get a bad GDP, possibly even a negative one next week, the market will love it? It just may work out that way. It almost seems as if the bulls can't lose. A good number means things are getting better so let's celebrate that with some upside action.
Read full article... Read full article...
Friday, May 22, 2015
Inaccurate Economic Statistics and The Threat to the Bond Market / Interest-Rates / US Bonds
By: Alasdair_Macleod
Statistics have become very misleading: in particular we are being badly misled into believing that the US is teetering on the edge of price deflation, because the US official rate of inflation is barely positive, a level that US bonds and therefore all other financial markets have priced in without accepting it is actually significantly higher.
Read full article... Read full article...
Thursday, May 21, 2015
Illusions of Time and a Ship of Fools / Interest-Rates / UK Interest Rates
By: Tom_Naysburn
Election success has handed Mr Cameron and the Conservatives sole charge of the ship and the opportunity to fashion a new rudder with which he can chart a course through these shark invested waters.
It’s been said many times before that the only conversation ever worth having in politics or intellectual discourse is about “the money”, not because it in itself has any great value to society, but because we value everything we do in it. This is undoubtedly true yet so few want to talk about it, just look at the mainstream media who appear to feign the belief that the economics world is flat and the sun rises twice a day. Most of them maybe blissfully ignorant of their acquiescence but those who do stand on the bridge of the ship of fools in a grubby and tawdry garb.
Read full article... Read full article...
Wednesday, May 20, 2015
Will Interest Rates Ever Rise? / Interest-Rates / Global Financial System
By: BATR
Wrapped in a worldwide currency depression, the intentional zero interest rate strategy has fostered great damage to the practice of saving. Nevertheless, not everyone believes or blames central banksters for enacting a deliberate policy. Reporting on one such denier is UK columnist Jeremy Warner. He writes in the Telegraph article, When will interest rates rise? The way things are going, maybe never.
Monday, May 18, 2015
Interest Rates Spiking Everywhere / Interest-Rates / Global Financial System
By: John_Rubino
Just as ultra-low interest rates start to seem normal, the markets decide otherwise. US 10-year Treasury bonds yielded about 1.9% in April and are now above 2.20%:
Read full article... Read full article...
Monday, May 18, 2015
Global Bond Bubble Will Explode Violently / Interest-Rates / International Bond Market
By: Michael_Pento
Central banks are incapable of saving economies or creating growth. The only thing a central bank can do is create inflation. These market manipulators set forth on a journey seven years ago to save the world by engaging in massive monetary manipulation, euphemistically called Quantitative Easing (QE), and a Zero interest rate policy known as (ZIRP).
As I could have told them before they started, all this easy money will fail to create viable growth. The economy, held back by massive debt levels, initially clocked in at 0.2% for the first quarter. This number is set to be revised down to negative territory due to a huge increase in the trade deficit during March. And the second half isn’t setting up to be much better either.
Read full article... Read full article...
Monday, May 18, 2015
Bond Market Chaos Is Spinning Out of Control / Interest-Rates / US Bonds
By: ...
MoneyMorning.com Michael Lewitt writes: A few weeks ago, the man formerly known as the Bond King, Bill Gross, tweeted that shorting German bunds would be the trade of the century.
I was gratified to see that he was reading my mind, as readers of my Credit Strategist newsletter already know.
Read full article... Read full article...
Sunday, May 17, 2015
Velocity of Money - The Chart the Fed Doesn’t Want You to See / Interest-Rates / US Interest Rates
By: Investment_U
Andrew Snyder writes: The folks at the Fed are getting desperate. Their patient is slowly healing, but he refuses to do it without a big dose of painkillers. It’s clear that if the money manipulators hide their pills now, our addict will throw an economic fit none of us is eager to experience.
On Wednesday, markets were shaken when the world’s top pill pusher Fed Chief Janet Yellen boldly told us that stocks are overpriced. It was a half-cocked assertion that Alex Green quickly overcame (read his argument here).
Read full article... Read full article...
Friday, May 15, 2015
Double Black Diamond - What a Bond Bear Market Looks Like / Interest-Rates / US Bonds
By: John_Mauldin
I was a halfway decent skier when I was a kid. Good enough that I could navigate every trail on the mountain except for one or two. Good enough that I could do the double black diamonds.
My grandfather built a cabin on the access road to Sugarbush, Vermont, in the ‘80s and sold it in the ‘90s. Makes me weep when I think what that thing would be worth now. I wasn’t kidding when I said I come from a financially unsophisticated family.
Read full article... Read full article...
Wednesday, May 13, 2015
Debt Bomb - Big Volatility Shakes Bond Market Investors / Interest-Rates / US Bonds
By: EWI
Is the debt bomb about to go off?
Editor's note: You'll find the text version of the story below the video.
Read full article... Read full article...
Tuesday, May 12, 2015
U.S. Bond Bear Market Still Underway? / Interest-Rates / US Bonds
By: Tony_Caldaro
The has been lots of talk lately of a Bond market top. This type of talk has actually been going on, and off, for a few years. To our surprise we find we have not written a Bond specific report in nearly three years: https://caldaro.wordpress.com/2012/07/02/bonds-and-long-term-rates/. In that report we detailed why we expected Bond yields to be bottoming in 2012. The 10YR did make a new yield low that year at 1.39%, and it has remained above that low ever since – currently 2.27%. The 30YR also made a new low yield that year at 2.45%. It then rose to 3.98% in 2014, but renewed its decline into a lower low at 2.23% in February of this year – currently 3.04%.
Saturday, May 09, 2015
Credit Insanity: The Biggest Debt Bomb in History and the Fuse is Lit / Interest-Rates / Credit Crisis 2015
By: EWI
Dear investor,
Exclusive invitation: Our friends at Elliott Wave International have just released a new subscriber-level summary report, Credit Insanity: The Biggest Debt Bomb in History and the Fuse is Lit, for their paying subscribers. Once I read it, I asked EWI if I could share it with you, too, and they graciously agreed, but asked that I don't make too big of a deal about it, because it was intended for subscribers only.
Read full article... Read full article...
Thursday, May 07, 2015
Global Bond Markets in Perspective / Interest-Rates / International Bond Market
By: Gary_Tanashian
The world is getting hyped up about bond yields lately with bonds of all stripes declining, as if we are in the midst of a debt Armageddon (we are and have been in the midst of a decades-long and still intact 'debt for growth' Ponzi operation). Here is some perspective...
Thursday, May 07, 2015
U.S. Fed Embarrassment of Transparency / Interest-Rates / US Federal Reserve Bank
By: Peter_Schiff
Over the past decade or so, "transparency" has become one of the buzzwords that has guided the Federal Reserve's culture. The word was meant to convey the belief that central banking was best done for all to see in the full light of day, not in the murky back rooms of Washington and New York. The Fed seems to be on a mission to prove that its operations are benevolent, fair, predictable, and equitable. Part of that transparency movement took shape in 2007 when the Fed began publicizing its Gross Domestic Product (GDP) forecasts, which previously (to the frustration of investors) had been kept under wraps. Most of the Fed's policy moves are tied to how strong, or how weak, it believes the economy will be in the coming year. As a result, its GDP forecast is perhaps the single most important estimate it make.
Tuesday, May 05, 2015
TLT Breaks a Head & Shoulders Neckline / Interest-Rates / US Bonds
By: Anthony_Cherniawski
TLT just crossed the neckline of its Head & Shoulders formation, suggesting a very steep decline to 107.76.Read full article... Read full article...
Tuesday, May 05, 2015
The U.S. Fed Needs Your Help / Interest-Rates / US Federal Reserve Bank
By: Harry_Dent
Rodney Johnson writes: The Fed needs your help. This stately body of academics has worked for years to rejuvenate the U.S. economy, but to no avail.
You can’t say they’ve been lazy in their efforts. When their first quantitative easing (QE) program failed to create a bounce back in housing, they started up another one, QE2. When that failed they brought in QELite, followed by Operation Twist.
Read full article... Read full article...
Tuesday, May 05, 2015
The Collapse of Cash / Interest-Rates / Global Financial System
By: Michael_Pento
Despite all of the central bank manipulations over the past seven years, it is finally becoming clear economies will not be able to achieve escape velocity. The U.S. central bank has the longest track record of treading down the path of monetary manipulations. And has achieved anemic average annual growth of 2.2% since 2010. Therefore, to further demonstrate the failure of money printing to engender economic growth, the dismal Q1 GDP read of just 0.2 % displays the failure of this policy once again. Wall Street Shills have been quick to once again blame snow in the winter for the Q1 miss. However, it is becoming evident that Q2 will not produce any such anticipated rebound.
Monday, May 04, 2015
U.S. Long Bond, an Historic Trading Opportunity? / Interest-Rates / US Bonds
By: Dan_Norcini
This past week saw a huge swing in interest rates at the long end of the curve with the long bond in particular getting knocked for a loop.