Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Tuesday, June 09, 2009
Mortgage Borrowers Suffer as Lenders Charging Extortionate Interest Rates / Interest-Rates / Mortgages
By: MoneySupermarket
Despite the Base Rate continuing to hold at 0.5 per cent, providers are increasing average mortgage rates, and the margin above the Libor rate is rising, proving that the Bank of England is increasingly toothless when it comes to regulating the cost of mortgages, with lenders increasing profit margins at the expense of their customers.
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Tuesday, June 09, 2009
Seasonal's and Fundamentals Supportive of Treasury Bonds / Interest-Rates / US Bonds
By: Levente_Mady
The bond market sold off another four and a half points during the course of last week. Market participants seem to be convinced that the worst is behind us as they were busy selling more bonds and buying whatever else they could get their dirty paws on. This week there is another set of 3, 10 and 30 year Treasury auctions on deck. That ought to hold the market back at the outset, but perhaps not after Thursday’s long bond auction.
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Monday, June 08, 2009
U.S. Debt Crisis as Treasury Bond Prices Collapsing and Interest Rates Surging / Interest-Rates / US Debt
By: Money_and_Markets
Martin Weiss writes: Just as we’ve been warning, the United States Treasury is the next and largest victim of this great debt crisis.
Right now, the Treasury’s finances are collapsing … its bond prices plunging … its interest rates surging.
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Saturday, June 06, 2009
Huge Budget Deficit Producing New Debt to Force Interest Rates Higher / Interest-Rates / US Debt
By: John_Mauldin
The New, New Normal
A Different Perspective on Health Care
Staying Rich in the New Normal
We are coming to a critical inflection point, perhaps the most critical point that we have had in 70 years for the US and to a great extent the global economy. The choices we make (or that Congress and the Fed make for us) will affect not just our investment portfolios but business and our jobs for a very long time. Last week I talked about the three paths we face as a nation. I want to go back to that theme and expand upon it. You need to clearly understand what the risks are so that you can interpret the actions and data that will be coming at us in the next few quarters. I am feeling a little tired today, so I am going to take the liberty to reproduce Bill Gross's latest comments as well, which are somewhat in line with my own.
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Friday, June 05, 2009
Team Obama Charm Offensive on U.S. Treasury Bond Holders / Interest-Rates / US Bonds
By: Peter_Schiff
This week, Team Obama took their dog and pony show on the road. Treasury Secretary Geithner went to China, Fed Chairman Bernanke to Capitol Hill, and the President himself began a Mideast tour in Saudi Arabia. This full-court press is not coincidental, and comes just as the federal government has begun unloading trillions of dollars in new Treasury obligations. The coordinated charm offensive is meant to assure the world-at-large that the United States can repay these obligations without destroying the dollar.
Thursday, June 04, 2009
Germanies Merkel Cautions European Central Bankers on Debt Monetization / Interest-Rates / Euro-Zone
By: Axel_Merk
German Chancellor Angela Merkel caused a stir when warning the European Central Bank not to engage in asset purchases. She has received a lot of attention as it is an unwritten rule not to infringe upon the independence of central bankers. While we would typically agree that the independence of central bankers is of paramount importance, we believe it is not only appropriate, but also her duty to speak out. Let us elaborate.
Wednesday, June 03, 2009
Why Interest Rates are Rising / Interest-Rates / US Interest Rates
By: Marty_Chenard
Today ... I must speak about long term interest rates and mortgages.
Yesterday, the 30 year yields closed at 44.89. At the end of December, the 30 year yields were only 25.19 ... that was a significant rise (see the chart below). 30 year mortgage rates got down as low as 4.5%, and yesterday they ranged from 5.25% to 5.375%.
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Wednesday, June 03, 2009
Geithner's Debt Dialogue With China, but the U.S. Dollar May Still be Doomed / Interest-Rates / US Bonds
By: Money_Morning
Jason Simpkins writes:Two days of talks between U.S. Treasury Secretary Timothy F. Geithner and Chinese officials culminated yesterday (Tuesday) with both parties reaffirming their confidence in the value of the dollar, and the viability of U.S. debt.
Tuesday, June 02, 2009
Fed Fears Treasury Bond market Collapse / Interest-Rates / Financial Crash
By: Global_Research
Robert Wenzel writes: The Federal Reserve appears to be increasingly nervous about the long term bond market. This is serious. How panicked are they? After leaking a story on Friday, they are back at it on Sunday.
Tuesday, June 02, 2009
Quarterly $1 Trillion Monetization / Interest-Rates / US Debt
By: Jim_Willie_CB
The rising long-term USTreasury Bond yield has captured attention. The breakout chart for the 10-year Treasury was pointed out here when it rose over 3.1%, hardly a high level. In the first week of May, a target of 3.5% was cited, one easily surpassed. It zoomed to 3.75%, enough to create some waves in the stock market distracted and preoccupied by nonsensical Green Shoots talk on the psychological side and by falsified bank balance sheets on the accounting side. Bigtime stress has come to the USTreasury complex, a story difficult to mask and conceal, since it is at the epicenter of the credit markets.
Tuesday, June 02, 2009
Geithner & China on U.S. Treasury Bonds Sales Trip: Who Are You Fooling? / Interest-Rates / US Bonds
By: Axel_Merk
Treasury Secretary Tim Geithner’s trip to Asia has been heralded as a sales trip aimed at convincing the Chinese to keep buying U.S. Treasuries and thereby finance U.S. deficits. Such headlines are, in my humble opinion, an insult to the Chinese. Over and over again, we fall victim of the temptation to believe that Chinese leaders act in a vacuum, dictating policies out of a closet. Chinese leaders know very well the state of the Chinese, the U.S., and the world economy; they don’t need a sales pitch. So what’s the purpose of Geithner’s trip then?
Monday, June 01, 2009
U.S. Treasury Bond Market Oversold, Strong Seasonal Influences Supportive of a Rally / Interest-Rates / US Bonds
By: Levente_Mady
The bond market sold off another three and a half points during the course of last week before managing to recover to almost unchanged for the week. It was one of the strangest weeks of trading activity that I have seen in a long time. While the economic data offered no major surprises to drive substantial moves in yields, the focus appeared to be on the Treasury auction calendar.
Sunday, May 31, 2009
U.S.Treasury Bonds in the Eye of the Financial Storm / Interest-Rates / US Bonds
By: Money_and_Markets
Bryan Rich writes: The U.S. Treasury bond market has become the focal point of financial markets for the past several trading days. And when Treasury bonds move, so does the dollar.
Sunday, May 31, 2009
Government Bond Markets Plunge Under Weight of Debt Issurance / Interest-Rates / International Bond Market
By: Prieur_du_Plessis
Government bonds dominated action on financial markets during the past holiday-shortened week, as angst about inflation and massive issuance propelled yields to six-month highs in the US, Europe and Japan.
Bonds and other safe-haven assets such as the US dollar were out of favor as signs of a bottoming of global economies, albeit tentative, emboldened investors’ appetite for reflation trades like equities and commodities, including oil and precious metals.
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Friday, May 29, 2009
The Next Debt Landslide: Lessons from Andrew Carnegie / Interest-Rates / Credit Crisis 2009
By: Doug_Wakefield
Here we are, sitting in our homes or businesses reading commentary about the craziness of the world in which we live. While our collective response to rising markets has always been, “this is good,” never before have we been asked to trust so implicitly in ideas that are so far removed from the lessons of world history. While our political and financial leaders keep telling us that the capacity for debt production is eternal, Andrew Carnegie disagrees. If your friends don’t recognize that name, remind them that Carnegie had a little money in the 1800s. Carnegie Hall, Carnegie Mellon University, the Carnegie Endowment for International Peace, and the Carnegie Foundation for the Advancement of Education all bear his name.
Friday, May 29, 2009
Treasury Bond TLT ETF Rallying / Interest-Rates / US Bonds
By: Mike_Paulenoff
It is interesting that the iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT) is rallying with the commodity sector today. Yes, the TLTs are very oversold, so let’s not read too much into today’s strength. However, I am suspicious that the strength just might be a reflection of anticipated Fed activity and buying interest in the long end – to prevent a back-up in mortgage rates and/or a derailment of fledgling economic recovery regardless of an increase in inflationary perceptions.
Friday, May 29, 2009
Why Government Bonds Are No Longer A Safe Investment / Interest-Rates / International Bond Market
By: Money_Morning
Martin Hutchinson writes: With budget deficits on the rise and inflation almost certain to follow, it’s getting easier to see why British or U.S. government bonds are no longer a truly safe investment.
Friday, May 29, 2009
Which of these Global Bond Markets is the Most Bearish? / Interest-Rates / International Bond Market
By: Seven_Days_Ahead
The Technical Trader’s view:
TNotes:
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Thursday, May 28, 2009
Mortgage Market Locks Up as Interest Rates Soar / Interest-Rates / Mortgages
By: Mike_Shedlock
Yesterday 10 year treasury yields went soaring and the mortgage market literally seized up. Mark Hanson at the Field Check Group has this report that I can share.
Thursday, May 28, 2009
U.S. Treasury Bond Market Massacred; Yield Curve Steepest On Record / Interest-Rates / US Bonds
By: Mike_Shedlock
Bernanke cannot have his cake and eat it too. If the economy is recovering the yield curve should steepen. And steepen it has. The Yield Curve Is Steepest On Record.