Category Archives: Bonds

QOTD: Druck On Distorted Interest Rates

…today we have settled to allowing the most important price of all, long-term interest rates, to be regularly distorted by public intervention. …If I were trying to create a deflationary bust, I would do exact exactly what the world’s central … Continue reading

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Italy’s North-South Economic Divide – France24

Italy 10-year closed at 1.88 percent today,  6.7 bps wider versus the 10-year bund for the week, but still 14 bps tighter year-to-date. The Italian 10-year government bond is 112 bps through the U.S. 10-year note yield, and the country … Continue reading

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Dimon Says Prepare for 4% Yields – Bloomberg

Wow!  It sounds like Jamie read our recent post,  Prepare For Much Higher Long-Term Rates.   Nah, we are just on the same page. He speculates the yield curve will not invert as it did in the last tightening cycle; long-term … Continue reading

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Prepare For Much Higher Long-Term Rates

There has been a huge drain of liquidity from the U.S. Treasury market over the past few years, and may signal a structural change to how the United States finances budget deficits. The government will always find a way to … Continue reading

Posted in Bonds, Charts, China, Credit, Geopolitical, Interest Rates, Sovereign Debt, Uncategorized | Tagged , , , | 36 Comments

Draghi’s Monetary Policy Statement

Apr.26 — European Central Bank President Mario Draghi speaks at a news conference in Frankfurt about the economy, monetary policy and inflation after the ECB maintained its pledge to move slowly in removing euro-area stimulus. (This is his opening statement.)  … Continue reading

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Cleveland Fed Dishes On Yield Curve Signal

Check out the latest from the Cleveland Fed president,  Loretta Mester: Mester advised that there is “no evidence” for thinking that a flatter curve signals a weaker economy at this time, Reuters reported. She added that “structural factors,” such as bond-buying by central … Continue reading

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Q1 in Review

Q1: Lake Placid To The Mavericks The markets closed out the quarter trying to recover from one of the biggest volatility shocks in history, which began in early February.   The question for Q2 is:  Was the v-shock a one-off or a … Continue reading

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Still No Relief From The Bond Market

Last week the S&P500 sold down 5.95 percent. We noted in an earlier post, Why This Correction Is Different, in that the current sell-off is different from all other corrections over the past 30 years (except a special case in … Continue reading

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Why This Correction Is Different

Those dreaded words you never want to hear as an investor, “this time is different.” Stock and Bond Correlation It does apply to the latest stock market correction, however. The sell-off that began on January 29th spanned ten trading days and … Continue reading

Posted in Bonds, Equities, Fed, Uncategorized | 30 Comments