Category Archives: Bonds

Turmoil In The Money Markets & Financing Burgeoning Budget Deficits

Sit up and listen, folks.  We may be in the midst of a Black Swan event. Nobody knows for certain what is creating the turmoil in the repo and money markets but we suspect much of it has to do … Continue reading

Posted in Bonds, Uncategorized | Tagged , | 2 Comments

Rent Control Issues Hit 7-year Bond Auction

At least, that is our view. We have worried out loud how global interest rate repression may cause ugly bond auctions. A problem that similarly arises in the rent-controlled housing market. …we are watching the Treasury auctions closely and suspect … Continue reading

Posted in Bonds, China, Credit, Uncategorized | Tagged , | 8 Comments

The Short-Term Heavy Treasury Curve

Before reading further we suggest you look at our latest post, The Perversion Of The Yield Curve Inversion, for some context.   Gravitational Pull Toward Curve Flattening And Inversions Note the structure of the Treasury curve in terms of the amount of … Continue reading

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The Perversion Of The Yield Curve Inversion

We should be on vacation but it never fails that volatility spikes as soon as we leave our desk.   It must be the Ides Of August. Wait, it is.  Et tu Brutal! Nevertheless, we can’t help ourselves and have to … Continue reading

Posted in Bonds, Fed, Uncategorized | Tagged , | 2 Comments

More Monetary Insanity & The Negative Yielding Bond Bubble

Had to get this last one in before we hit the surf. We like to look at the Cleveland Fed’s Median CPI calculation as it removes monthly outliers that can pull the averages up or down.  It hit a 10-year … Continue reading

Posted in Bonds, Inflation/Deflation, Uncategorized | Tagged , | 2 Comments

Negative Yields Versus Negative Coupon Rates

There is a big difference between a bond with a negative yield to maturity than a bond with a negative coupon rate.   Many in the market conflate the two. We are searching for bonds that pay a negative coupon rate.  … Continue reading

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“Rent Control” Problems Emerging In Bond Auctions

  Hat Tip: Gregory Mannarino  @GregMannarino The bid-to-cover ratio, indicative of the number of investors who put in offers to buy the debt and a gauge of demand, stood at 2.19. That is down from the 2.4 recorded in the last sale … Continue reading

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Can Treasury Issue An Additional $1 trn At These Fake Yields?

A question has been nagging us for some time.  If the current sovereign yields are repressed and fake, many of which are negative, can the borrowers issue any significant amount of new debt at these current yields?   Especially to long-term … Continue reading

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Greek 10-year Trades Through U.S. 10-year Treasury Yield

God, we love efficient markets.  Greece 10-years now trading through the U.S 10-year. What is the bond market telling us?  Pleaaaazeee… How much do you wanna bet the analysts, who were saying “Greece is still going to default” after the … Continue reading

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QOTD: Bund Dearth

QOTD: Quote of the Day Nice pithy quote, which thoroughly encapsulates our narrative of global markets that the major central banks have created a yuuuge shortage of risk-free assets tipping the world economy into a bizarro Twilight Zone, where, now … Continue reading

Posted in Bonds, Uncategorized, Weekly Eurozone Watch | 2 Comments