Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Saturday, October 15, 2011
ECB Rate Cut: Eyes on Aussies / Interest-Rates / Global Debt Crisis
By: Dr_Jeff_Lewis
Investors sent German government bonds higher, banking on a rate cut from the European Central Bank. Now just days after bullish bond sentiment reached its peak, investors have backed off, realizing that a rate cut might be less likely than once thought.
Rates are already held low by the European Central Bank, which stopped short of actions on a magnitude to mirror the United States. The ECB currently offers a 1.5% rate on its main financing operations, known as fixed-rate tenders.
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Saturday, October 15, 2011
Investors Lose Confidence in the US Government / Interest-Rates / US Debt
By: Dr_Jeff_Lewis
The equity markets staged a rally on Monday, with a buying spree that was largely seen as a response to European fears. Quietly, the same investors who purchased corporate stock on the open markets moved out of other investments, primarily Fannie Mae and Freddie Mac securities.
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Friday, October 14, 2011
The Fed 8% Inflation Solution / Interest-Rates / Inflation
By: Fred_Sheehan
The terminal stage of Dr. Frankenstein-style central banking is disgorging ridiculous claims of authority motivated by reckless efforts to retain control. One such pincer attack is the Federal Reserve's purported 2% inflation target. Behind our very eyes, this fictional mandate is being raised, all the more reason that savers need to speculate, not a welcome prospect with both inflationary and deflationary influences expanding and bound to burst.
Friday, October 14, 2011
Italian Bond Yield Surges to 5.82%, Government Loses Routine Budget Vote / Interest-Rates / Credit Crisis 2011
By: Mike_Shedlock
After losing a routine parliamentary vote on the budget, Silvio Berlusconi, the very annoyed prime minister of Italy called for a vote of confidence. The vote is expected on Friday.
I believe Berlusconi may lose a close vote. If not, he will be discarded by March.
Thursday, October 13, 2011
Robert Prechter Explains The Fed, Part I / Interest-Rates / Central Banks
By: EWI
The ongoing economic problems have made the central bank's decisions -- interest rates, quantitative easing, monetary stimulus, etc. -- a permanent fixture on six-o'clock news.
Yet many of us don't truly understand the role of the Federal Reserve.
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Thursday, October 13, 2011
FOMC Meeting: QE3 is Likely, if Economy Slips / Interest-Rates / Quantitative Easing
By: Asha_Bangalore
The minutes of the September 20-21 FOMC meeting indicate that several members see significant downside risks to economic growth. They do not project a decline in GDP, but noted that the economy was “vulnerable to adverse shocks.” In this context, the sources of adverse shocks included “pronounced or more protracted deleveraging by households, the chance of a large-than-expected near-term fiscal tightening, and potential spillovers to the United States if the financial situation in Europe were to worsen appreciably.”
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Tuesday, October 11, 2011
Adjusted U.S. Monetary Base Less Excess Bank Reserves / Interest-Rates / US Debt
By: Jesse
Thanks to my friend Gary at NowandFutures.com for this chart.
I like to think of the expansion of the monetary base as it has been implemented this time, versus 1933 , as a large animal passing through the body of a python.
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Sunday, October 09, 2011
An Irish Debt Haircut / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Just as only four short years ago it was All Subprime, All the Time, and then it was the Credit Crisis, now it is Europe. (When) will Greece default and which banks will implode as a result? Is there another banking crisis in our future? I just came back from a whirlwind four-country visit to Europe, and I will try to offer a few insights. This week we start with Ireland, move to the problem of Europe at large and, if we're not out of space (and your patience!), we'll visit some last-minute data points. There is a lot to cover, so let's jump right in.
Friday, October 07, 2011
Mervyn's Pringle Problem / Interest-Rates / UK Debt
By: Adrian_Ash
Bank to Treasury: Forget credit easing. It's your debt that needs queasing...
UNLIKE PRINGLES tasty potato snacks, quantitative easing doesn't come with a resealable lid. So the famous sales line is only more true for central bankers:
"Once you pop, you can't stop!"
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Friday, October 07, 2011
Financial Debt Destroyed Our Economy / Interest-Rates / US Debt
By: Barry_Elias
The financial industry had few assets to market in the past three decades.
As such, they fervently pursued the marketing of debt. In many instances, it appears this methodology was a sustained, premeditated, and deceitful endeavor).
Friday, October 07, 2011
Navigating the Eurozone Debt Crisis and Preparing for Greece’s Failure / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Folks, you hear a lot about the eurozone crisis, but what you don't run across very often is a coherent idea on how to move forward. My friends at STRATFOR, a private intelligence company, have done us all the courtesy of saying out loud what everyone else shies away from: Eject Greece from the eurozone.
It's not pretty. It belies the lovely concept of a unified and prosperous Europe. And the worst part: it comes with a big fat price tag, of the 2-trillion-euro variety. But it may be the only way to steer the train before it derails completely.
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Thursday, October 06, 2011
How Ben Bernanke "F*d" the Banks and Fixed Income Savers at the Same Time / Interest-Rates / Central Banks
By: Mike_Shedlock
Hello Ben. It seems your ploy to hold interest rates at preposterously low levels has backfired into a run on Bank of America assets.
Bank of America Customer Frustration Grows
Thursday, October 06, 2011
What's Next on the Fed's Plate? / Interest-Rates / Quantitative Easing
By: Dr_Jeff_Lewis
It's safe to say that the Fed's latest announcement won't be enough to get Wall Street fired up. In a decision designed to minimize the long run cost of money, the Fed's so-called "Operation Twist" has been a nonstarter for Wall Street.
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Thursday, October 06, 2011
5 Ways You Can Use Trendlines to Improve Your Trading Decisions / Interest-Rates / Learn to Trade
By: EWI
Greetings Trader,
Robert Prechter’s Elliott Wave International (EWI) has just released a free 14-page trading eBook: Trading the Line – 5 Ways You Can Use Trendlines to Improve Your Trading Decisions, by Senior Analyst Jeffrey Kennedy.
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Wednesday, October 05, 2011
Will the Hawks of the FOMC Have to Reconsider? / Interest-Rates / US Interest Rates
By: Asha_Bangalore
The Bernanke Fed is currently divided about its view of the pace of future economic activity. The vote at the August and September meetings included three dissents. The dissenters held the view that additional monetary policy support is uncalled for and they remain concerned about future inflationary pressures. Charts 2-4 are telling exhibits that represent market assessment of future economic conditions.
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Tuesday, October 04, 2011
U.S. Treasury Bond Market Rally Strong Signal of Systemic Failure / Interest-Rates / US Bonds
By: Jim_Willie_CB
The USTreasury Bond rally over the last few months has been celebrated. Some call it a contradiction of the Standard & Poors debt downgrade of USGovt debt. Some hail the rally as proof that the USDollar remains respected as global reserve currency. Some regard it as a sign of bond market health in general. Some claim the US remains the safe haven. These are all errant views to the extreme, comments from cheer leaders to a system in deep deterioration, distractions from reality. The United States is stuck in a powerful recession, its huge federal deficits set to expand further, the fiscal austerity to be sacrificed, the turmoil in Europe rendering the US panorama more alluring and cute.
Tuesday, October 04, 2011
Operation Twist a Primer for QE3 Money Printing? / Interest-Rates / Quantitative Easing
By: Axel_Merk
Is Operation Twist a failure? The stock market plunged in disappointment when it was announced. Keynesians are tearing their hair out in frustration, as it appears the Fed failed to ramp up the printing press. Free marketers are disgusted by the blatant manipulation of the yield curve. A number of Federal Reserve (Fed) President Bernanke’s colleagues dissented and/or are voicing public opposition. However, as the dust settles, it appears there is a method to the twist: Bernanke may have a plan…
Monday, October 03, 2011
PIMCO Wrong as Bond Bears Plow Into U.S. Treasuries / Interest-Rates / US Bonds
By: Mike_Shedlock
Bill Gross at Pimco has had a change of heart. Bloomberg reports Bond Bears Piling Into Treasuries as Yield Forecasts Cut by Most Since ’09
Read full article... Read full article...Eight months ago Bill Gross, manager of the world’s biggest bond fund, said Treasuries “may need to be exorcised” and cleaned them out of his $245 billion Total Return Fund. The company then used derivatives to bet against the debt in March.
Monday, October 03, 2011
If They Have a Gun To Their Heads, Do the Banks Lend? / Interest-Rates / Credit Crisis 2011
By: Submissions
Sam Houston writes: Here we are three years after the financial crisis of 2008. The banks got bailed out. Their junk mortgages now sit on the balance sheet of the Federal Reserve. In exchange the Fed gave them face value in cash for their junk. Where did they get the cash? They created it out of thin air of course.
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Friday, September 30, 2011
Leider Mein Liebste; Its Spelt TALF Not TARP: Next ECB Will Print A Trillion Euros / Interest-Rates / Credit Crisis Bailouts
By: Andrew_Butter
Here’s an idea, if the Euro doesn’t exist anymore then the Greeks can pay back their Euro-denominated debts in imaginary money and everyone can live happily ever after?
Meanwhile; trust the Eurocrats to come up with a mind-baffling plan to kick the can down the road. It’s written in Deutchlitz which is what you get when you use a computer to translate a document originally written in German into French and from there you use another computer to translate that into an approximation of English. The words all spell on an English spell-checker but in aggregate anyone who speaks English hasn’t got a clue what they mean. For example, from the ECB Data Warehouse we are provided with:
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