Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Saturday, May 15, 2010
Japan The Sleeping Sovereign Debt Crisis Giant / Interest-Rates / Global Debt Crisis
By: Bryan_Rich
Over the course of this year in my Money and Markets columns I’ve presented some compelling reasons why the euro zone and the euro were in for a life threatening crisis. And despite the general consensus along the way that the problems in Greece were contained and that dips in the euro should be bought, I maintained that the euro was in a no-win situation.
Saturday, May 15, 2010
California Debt Default is More Likely than Iceland or Iraq / Interest-Rates / US Debt
By: Washingtons_Blog
Federal Reserve isn't the only one who owns credit default swaps betting that California will default.
As Ed Harrison points out, credit default traders have now ranked California in the list of top 10 governments most likely to default, with a 20% default probability:
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Friday, May 14, 2010
Strategic Mortgage Defaults the Next Debt Time Bomb To Explode / Interest-Rates / US Debt
By: Sol_Palha
We spoke of this issue several months ago and stated that we were possibly in the midst of a new trend. We no longer need to ponder about this anymore; we are, in fact witnessing a new trend.
Friday, May 14, 2010
U.S. Solvency Contingent on Low Interest Rates / Interest-Rates / US Interest Rates
By: Michael_Pento
According to the Department of Treasury’s Auction Staff, the U.S. auctioned $8.8 trillion in Bills, Notes and Bonds in fiscal year 2009. That number is greater than the entire publicly traded debt, which is currently $8.4 trillion. The reason for the enormous amount of debt issuance is due to our surging annual deficits and rollovers that must occur more frequently because of the government’s decision to issue debt on the short end of the yield curve.
Friday, May 14, 2010
EURO EXPERIMENT: E.U. Bullied into $1T Banking Bailout Bonanza / Interest-Rates / Credit Crisis Bailouts
By: Gordon_T_Long
Like a chess game, the bankers called 'checkmate' against the EU political leaders on Friday May 5th, 2010. Two days later in an urgently called weekend meeting the EU finance ministers hurriedly announced the biggest bailout in history.
Most people take more than two days to buy a car, but the frightened EU officials were pressured into reacting before the Asian markets opened Sunday evening. This is eerily the same scenario we saw on the eve of the US $700B TARP ratification, the Bear Stearns takeover, Fannie /Freddie Conservatorship, AIG Bailout etc.. A coincidence - Yeh right!
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Friday, May 14, 2010
Budget Busting Bailouts in Europe Drive Global Debt Burden Higher! / Interest-Rates / Global Debt Crisis
By: Mike_Larson
I’ve been out in Las Vegas this week for the MoneyShow. So naturally, I have gaming on the brain. My conclusion after reading the latest news out of Europe?
The European Central Bank (ECB) and European Union (EU) policymakers are going “all in” to head off the sovereign debt crisis there. Specifically …
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Thursday, May 13, 2010
Greek Debt Wildfire Engulfs the Euro in Flames, Boosts Gold / Interest-Rates / Global Debt Crisis
By: Gary_Dorsch
It takes a lot more time to safely extinguish a fire than it does to start it. There’s an important lesson to be learned from a sad story of a homeowner, who had been burning debris in the backyard of her home, and thought she had put the fire out. She later found out the fire had spread and was burning grass underneath her deck porch, which soon engulfed her two-story brick frame home in flames.
The woman tried to put the fire out and called her 14-year-old son to help. Unable to extinguish the blaze, the woman finally called 911 for help. However, by the time fire officials arrived, the fire had burned most of the backyard and the home was fully engulfed in flames. The incident is a reminder of the importance of calling authorities early when fires occur, instead of trying to put them out your-self.
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Wednesday, May 12, 2010
Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge / Interest-Rates / Global Debt Crisis
By: NewsLetter
The Market Oracle NewsletterMay 5th, 2010 Issue #27 Vol. 4
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Tuesday, May 11, 2010
E.U. Greece Bailout Fails to Defuse the Ticking Global Debt Bomb / Interest-Rates / Global Debt Crisis
By: Money_Morning
The ticking global debt bomb is in the in the spotlight again. Or, at least, it should be.
Greece's woes draw attention to the looming financing problems of other countries with a lot of debt. The strain of funding these requirements - the global debt bomb - is the greatest threat to global growth prospects. This is why central banks have flooded the financial system with money. It's the biggest and most critical financial battle of our time.
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Tuesday, May 11, 2010
E.U. Greece. PIGS Bailout Means the Death of Capitalism / Interest-Rates / Credit Crisis Bailouts
By: John_Mauldin
Was it only last week I was expressing outrage that US taxpayers would have to pick up the check for Greek profligacy in the form of IMF guarantees? This morning we wake to up the sound of $250 BILLION in IMF guarantees for a European rescue fund, most of which will go to countries that are eventually (in my opinion) going to default. That is $50 billion in US taxpayer guarantees. Not sure what that translates into for Britain or Canada or Australia.
Tuesday, May 11, 2010
E.U. $1 Trillion Bailout, Detonates Nuclear Option of Printing Money to Monetize PIGS Debt / Interest-Rates / Credit Crisis Bailouts
By: Nadeem_Walayat
Whilst most in the mainstream press are occupied by the big numbers behind the Euro 720 billion / $1 trillion of bailout loans, and guarantees of the Eurozone PIGS, however the most important change announced was the European Central Banks intentions to buy the debt of Eurozone countries in effect adopting an open ended policy of Quantitative Easing or money printing to monetize the debt of bankrupting Eurozone countries much as the other central banks have been doing of the US, UK and Japan. Which means that the debt burden of the PIGS has been dumped onto mainly German tax payers therefore it's not surprising that European banks holding bankrupting PIGS debt have soared in price as the PIGS government debt they hold is now effectively being insured by the ECB.
Monday, May 10, 2010
U.S. Treasury Bond Market Breaks Out of Trading Range / Interest-Rates / US Bonds
By: Levente_Mady
The bond market finally broke out of its 5 month trading range with some conviction. The long bond future actually traded as high as 124½ before settling back to 122 even at the close on Friday. While the fundamental data mostly exceeded expectations, the focus was on the jumpy, weak and nervous stock market which provided Treasuries with their traditional safe haven bid along with gold and the US Dollar.
Sunday, May 09, 2010
European Debt Crisis, What’s Up With The PIGS? A Picture Is Worth A Thousand Words / Interest-Rates / Global Debt Crisis
By: Charles_Maley
Once again, the media has many reasons (in hindsight) for the demise in Greece, Portugal and Spain, and of course are now forecasting how the situation will be resolved. Personally, I think this could be the beginning of the end for the Euro. Greece is the first test, but other European countries have problems, and the entire European Union are now called into question. Remember, the original goal was to unite different economies into one powerful trading block, with the Euro currency hopefully replacing the Dollar as the world currency.Read full article... Read full article...
Sunday, May 09, 2010
Greece Dreams of Bankruptcy / Interest-Rates / Global Debt Crisis
By: Pravda
If Greece does not receive financial aid by May 19, the country will become a bankrupt, the government warns. By that date Greece must pay off 9 billion Euros. Last week the country asked the International Monetary Fund for support. The decision regarding funds allocation will be made based on the results of three-way negotiations between the Greek government, European Committee and the IMF.
Saturday, May 08, 2010
Sovereign Debt Goes Bang! Challenge for Central Banks / Interest-Rates / Global Debt Crisis
By: John_Mauldin
The Risks from Fiscal Imbalances
The Challenge for Central Banks
Bang, Indeed!
The Center Cannot Hold
A Decent Employment Report
Last week we focused on the first half of a paper by the Bank of International Settlements, discussing what they characterized as the need for "Drastic measures ... to check the rapid growth of current and future liabilities of governments and reduce their adverse consequences for long-term growth and monetary stability." As I noted, you don't often see the term drastic measures in a staid economic paper from the BIS. This week we will look at the conclusion of that paper, and then turn our discussion to the fallout from the problems they discuss, initially in Europe but coming soon to a country near you.
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Friday, May 07, 2010
UK Government Bond Gilts, the Election and the Euro zone / Interest-Rates / UK Debt
By: Seven_Days_Ahead
(Written BEFORE the Elelction)The Macro Trader’s view:
Today the UK votes in the closest fought General election campaign in living memory. With a hung Parliament still looking the most likely outcome, at least according to the opinion polls, we look at how the Gilt might react once the results are known.
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Wednesday, May 05, 2010
The Subprime Rhyme with U.S. Debt Debacle / Interest-Rates / US Debt
By: Michael_Pento
The similarities between the subprime mortgage crisis and that of the coming collapse of the U.S. bond market are uncanny. In fact, Mark Twain may have had the U.S. debt market and the previous debt-fueled real estate crisis in mind when he said that “History does not repeat itself—but it does rhyme.”
Wednesday, May 05, 2010
Trichet Floods European Banking System With Cash / Interest-Rates / Euro-Zone
By: Mike_Shedlock
After all his tough bulldog talk over the years, the world can now see Trichet is in reality nothing more than a monetarist pussycat when the chips are on the line.
Monday, May 03, 2010
The Great Interest Rate Explosion of 2010-2011 How to Protect Your Wealth and Profit / Interest-Rates / US Bonds
By: Mike_Larson
The dot-com bubble of the late 1990s. The housing bubble of the mid-2000s. They both wreaked massive havoc on investor portfolios. Trillions were lost … both here and abroad.
At Weiss Research, we take pride in the fact we warned of the epic destruction well in ADVANCE of the twin busts in tech stocks and housing.
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Monday, May 03, 2010
What Next for U.S. Treasury Bonds? / Interest-Rates / US Bonds
By: Frank_Shostak
At the end of March the yield on the ten-year T-note closed at 3.833%, up from 3.617% the month before. Note that at the end of March last year the yield stood at 2.67%.