Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Saturday, June 06, 2015
Greece’s Current Debt Problems / Interest-Rates / Eurozone Debt Crisis
By: Arkadiusz_Sieron
Greece is again on the brink. Hellas stood on the edge for the first time in spring 2010. In May 2010 the European Union and International Monetary Fund approved the first bailout worth €110 billion, under the condition of austerity measures. The first rescue package missed its targets as lenders’ economic forecasts for Greece were too optimistic. Therefore, in February 2012 the Troika (the Eurogroup, the European Central Bank and the International Monetary Fund) finalized the second rescue package worth a €173 billion (including money left over from the first bailout) provided by the newly created European Financial Stability Facility. Read full article... Read full article...
Friday, June 05, 2015
US Jobs Report Gives Green Light for a Interest Rate Hike? / Interest-Rates / US Bonds
By: Anthony_Cherniawski
Good Morning!
TNX is back in the news this morning with a huge spike in yields. The monthly Jobs Report came out much better than expected. Never mind that the vast bulk of those jobs was fictitious, AKA the CES Birth/Death Model. This gives the Fed the green light to hike rates, er…to follow what the market is already doing with the rates. This is an awfully tight corner for the Fed to be in.
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Friday, June 05, 2015
The Ugly Truth Behind the Fed's Quantitative Easing / Interest-Rates / Quantitative Easing
By: ...
MoneyMorning.com Shah Gilani writes: The growing income and wealth gap between the rich and poor, most of whom used to be called middle class, has many fathers. But behind the scenes one primary cause emerges. It's the greatest financial disruptor of modern times: Quantitative Easing (QE).
While the jury's out on whether QE will eventually be the step-ladder that lifts us out of the lingering Great Recession, as its proponents argue, the facts demand that the verdict on QE's egregious enrichment of the rich and subjugation of everyone else is: "guilty."
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Friday, June 05, 2015
Bernanke is Still Bubble Blind / Interest-Rates / US Federal Reserve Bank
By: Michael_Pento
Even though the former Chairman of the Federal Reserve is now getting paid privately for his economic and market prognostications, he is still unable to identify or acknowledge the monumental bubbles that central banks have engineered. Mr. Bernanke, who was recently interviewed in Korea, tried to assure investors that rate hikes (whenever they begin) would be good news for the U.S. economy. He was also very "optimistic" there would not be a hard landing in China. And, not surprisingly, the man who is now gainfully employed at the Brookings Institution, Pimco and hedge fund Citadel, is also "encouraged" by Japanese Premier Shinzo Abe's growth strategy. This is despite the fact that the thrust of Abenomics has been to depreciate the value of the Yen by 35 percent in the past two and a half years.
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Thursday, June 04, 2015
Japan’s Easy-Money Experiment and the Future / Interest-Rates / Quantitative Easing
By: MISES
Brendan Brown writes: The International Monetary Fund (IMF), once the conductor of a global dollar exchange standard based partially on gold convertibility, has mutated into the official platform for the 2 percent inflation standard launched surreptitiously by the Greenspan Fed in July 1996. The Federal Open Market Committee (FOMC) then approved a position paper by Professor Yellen that price stability should mean 2 percent inflation forever. Europe joined the standard in 1998, and Japan became the newest member in January 2013.
Thursday, June 04, 2015
Global Bond Market Rout - Draghi Says 'Get Used to Higher Volatility' / Interest-Rates / International Bond Market
By: Mike_Shedlock
Bond Rout in Pictures
German 10-year bonds hit a yield low of .048% on April 16. Since then it's been a pretty steep uphill climb in yield (down in price).
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Tuesday, June 02, 2015
The Coming Bond Market Collapse: Make a Killing – While Everyone Else Gets Killed / Interest-Rates / US Bonds
By: ...
MoneyMorning.com Shah Gilani writes: We’re hurtling toward the biggest bond bubble the world has ever seen.
It’s going to start leaking.
Then it’s going to pop.
Today I’m going to tell you what to look for – because I’m all over this.
I’m also going to share four handpicked recommendations that will soar when the bond bubble bursts.
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Monday, June 01, 2015
Bikers, Bonds, and Black Swans / Interest-Rates / International Bond Market
By: DeviantInvestor
A “black swan” event occurred at a gathering of outlaw bikers on Sunday, May 17 in Waco, Texas. According to news stories a fight broke out between several motorcycle gangs at the Twin Peaks restaurant. At least nine bikers are dead, another 17 were injured, and perhaps as many as 170 were detained or jailed.
Monday, June 01, 2015
Bond Bubble Bust Won’t Cause Great Rotation / Interest-Rates / Global Debt Crisis 2015
By: Michael_Pento
For the first time in its country’s history, Portugal sold 6 month T-bills at a negative yield. The 300 million euros ($333 million) worth of bills due in November 2015 sold at an average yield of minus 0.002%. A negative yield means investors buying these securities will get back less money from the government than they paid when the debt matures.
To put this in perspective, the 10 year note in Portugal now yields just 2.38%, down from 18% a mere three years ago. Back in 2012, creditors grew wary of the countries referred to as PIIG’s (Portugal, Ireland, Italy and Greece) and their ability to pay back the massive amounts of outstanding debt. Consequently, creditors drove interest rates dramatically higher to reflect the added risk of potential defaults.
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Monday, June 01, 2015
Dangerous Debt Trend And What It Could Do to Your Wealth / Interest-Rates / Global Financial System
By: Investment_U
Andrew Snyder writes: It is a fascinating trend - something every investor must be aware of. It’s yet another reason interest rates are likely to stay lower for far longer than most folks ever expected.
If rates rise, after all, countless governments are in big trouble.
Everywhere we look, return-desperate investors are turning to the debt market and its virtually free money. It’s one thing when companies use borrowed money to buy their own shares. It’s a victimless crime.
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Monday, June 01, 2015
Monetary Reform in Iceland: Maybe There is Still Hope? / Interest-Rates / Credit Crisis 2015
By: Submissions
Antonius Aquinas writes: Despite the barrage of catastrophic financial data throughout the Western world, there may be a glimmer of hope coming from the tiny Nordic island of Iceland.
It must not be forgotten that it was Iceland which was one of the first to feel the fallout of the financial crisis of 2007-08. Unlike most of the other nations, however, Iceland showed tremendous backbone and did not allow, for the most part, any of the NWO monetary agencies to intervene in its affairs. So, any Icelandic currency reform considerations must be taken seriously.
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Thursday, May 28, 2015
U.S. Fed Exported QE Travesty: Meet The BLICS Nations / Interest-Rates / Quantitative Easing
By: Jim_Willie_CB
The aggravated global financial situation is working toward a series of powerful climax events. The various USDollar platforms are either undergoing seizure or suffering from abandonment by primary players. The grand Reich Finance application is failing finally, with extraordinary lies, propaganda, market rigging, doctored statistics, and $trillion patches leaking. The Western banking system is being lashed at another level, after the multi-lateral lashing with derivatives tied the big Western banks all together following the Lehman killjob in 2008. A new global lashing has begun to show itself, yet another obscenity. Witness the export of QE globally by the USFed via the unlimited vast Dollar Swap facilities (massive slush funds). The new 5 BLICS nations under Western thumb are being used to purchase huge tracts of USTreasury Bonds, surely using Dollar Swap funds, on behalf of the USFed master criminal organization. One is left to wonder what the sweetener was for the five nations, like perhaps shared narcotics funds, or a promise of hidden banking system relief. The self-dealing using nations to buy USTBonds with free money has come to the fore, in another desperate attempt to save the system. It cannot be saved. It is cratering. It is rotting from the inside. It is fracturing. It will fail. The fiat paper currency system and its many attendant systems are seizing up, being rejected, and are failing in what has begun to be the grandest financial event in modern history.
Thursday, May 28, 2015
The ECB and the Negative-Interest-Rate Game / Interest-Rates / ECB Interest Rates
By: Frank_Hollenbeck
The ECB is now two months into its bond buying binge but the European Central Bank (ECB) never clearly explained the goal and purpose of its own version of quantitative easing. The deflation bogeyman was never a serious threat, nor was it based on any solid theoretical foundation.
A possible justification may have been to make the 1 percent much wealthier so that their extravagant lifestyles trickled benefits down to the average working stiff. Another possible reason may have been to lower the value of the euro to benefit exporters at the expense of the rest of European consumers, the middle class, and the poor. This would be a violation of the unwritten rule that monetary policy should not be targeting the value of the currency directly.
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Thursday, May 28, 2015
We're Now Frighteningly Vulnerable to a Bond Market Crash / Interest-Rates / US Bonds
By: ...
MoneyMorning.com Shah Gilani writes: Water doesn’t flow uphill.
It’s a lesson in physics so basic that even schoolkids know it.
In fact, everyone knows it…
Everyone except – apparently – the world’s central bankers.
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Tuesday, May 26, 2015
U.S. Fed Considers a More Seasoned Approach / Interest-Rates / US Interest Rates
By: Peter_Schiff
Just as the steady torrent of awful economic data, which began in the First Quarter and continued well into April and May, had forced many market analysts to grudgingly concede that 2015 would not see the robust economic growth that most had expected, the statisticians arrived on the scene like a cavalry charge and routed the forces of pessimism with a wave of their spreadsheets.
Monday, May 25, 2015
Janet Yellen is Right: She Can't Predict the Future / Interest-Rates / US Interest Rates
By: Dr_Ron_Paul
This week I found myself in rare agreement with Janet Yellen when she admitted that her economic predictions are likely to be wrong. Sadly, Yellen did not follow up her admission by handing in her resignation and joining efforts to end the Fed. An honest examination of the Federal Reserve's record over the past seven years clearly shows that the American people would be better off without it.
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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.
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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.
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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.
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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.
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