Tag: fixed income

JGBs – How They Responded to Japan’s Eco Nuke

Japan’s yield curve has flattened since the central bank’s new governor, Haruhiko Kuroda, announced plans for unprecedented quantitative easing. Bloomberg’s Graph Curve Surface function shows the market’s response
to Kuroda’s plan and therefore the potential impact of similar programs in other countries.

There has been a good amount of talk related...

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A Quick Look at the 10-Year Treasury Yield

The yield on the 10-Year U.S. Treasury bond has made an impressive move over the past few weeks. After dropping 40% from the high in March it has risen 28% since the low in July. Perhaps “Operation Twist” is what is being expected from Bernanke in  Jackson Hole, on August...

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NASTY: 30 Year Bond Auction Is Not Pretty

Make any excuse you want, the fact is that there is a simple reason why there was a poor showing for the 30 year auction: Less people want the product at previously paid prices. Translating that is also rather simple: A downgrade of the credit rating of the U.S. along...

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When Bill Gross Speaks –> Frogs Panic

Recently, Bill Gross, Pimco’s bond market king, discussed why he is bearish on U.S. Treasuries. He also reported that he has recommended  selling most, if not all, U.S. long-term Treasuries and actually went short. You gotta love this guy….

We have been waiting for the markets to wake up and realize...

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Bond Bubble? Perhaps – Initiating Position in (TBT)

A speculative short of 5% or 10% synthetic position of the 2x Inverse of the Barclays Aggregate 20+ Year Bonds with ticker symbol (TBT) has been included in the portfolio.  We are currently seeing some of the highest bond prices and lowest yields since March of 2009 which is signaling...

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Bond Bull Bubble is Ending…

The WSJ Video put this out. I am not quite sure that it provides enough data to help us understand that there may be a bursting-bubble in our near future. Interesting though..
Bond investors enjoyed stellar gains for several years but that’s about to end, says Kurt Brouwer, chairman of...

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Foreign Treasuries Holders – Is China Selling?

Interesting report out yesterday on the foreign holders of U.S. Treasury securities. In the last TDI PODCAST, Mish and I spoke about the reasons why China needs to continue purchasing U.S. assets. In other words, the fear over China stopping purchases and/or significantly reducing their holdings is unrealistic…. or is...

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Treasury Yields Should be at 10% ?

Here is something that you do not hear too often. 10% for treasuries are the right yield in the middle of this mess. Hmmm. How does that work? Isn’t the whole point of bringing down yields to help with liquidity and spur on the consumer during a difficult economic downturn?...

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