Category Archives: Bonds

Chart of the Day – Yield Seekers Go Parabolic

Posted on October 28, 2010 by macromon

“John Bull can stand many things, but he can’t stand two zero percent.” We have written about yield seeking capital flows, the currency wars, and zero interest rate, monetary policy, but nothing illustrates the issue better than this chart of … Continue reading →

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US Budget Deficit 9th Largest Economy in the World

Posted on October 26, 2010 by macromon

After falling to a low of 2.33 percent on October 8th, the 10-day Treasury has sold-off closing today at a yield of 2.64 percent.  The recent high is around 2.83 percent, which we will be watching closely. To get a … Continue reading →

Posted in Bonds, Commodities, Credit, Currency, Equities, Geopolitical, Gold, Monetary Policy, Policy | Tagged , , | 1 Comment

Fed creating “grave distortions” – Brazil Central Bank

Posted on October 18, 2010 by macromon

Brazil is considering additional measures to keep the Real from appreciating  any further.  We like the Economist’s Big Mac Index, which is based on the concept of purchasing-power parity, to get a sense of the over/undervaluation of a currency.  The … Continue reading →

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The Greatest Trade Ever?

Posted on October 15, 2010 by macromon

Check out Bespoke’s great table of Credit Default Swap (CDS) prices.   We don’t trade CDS, but doesn’t Long China/Short Japan,  straight up,  seem like the greatest trade ever? Or just outright short at 53 bps?   Japan’s public funding requirement is almost … Continue reading →

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Krugman’s Dangerous Misreading of the Bond Market

Posted on October 14, 2010 by macromon

During his Sunday appearance (click for interview) on This Week With Christiane Amanpour, Paul Krugman spoke the words that make us very uncomfortable. Responding to French finance minister Christine Lagarde’s fiscal austerity and Alan Greenspan’s caution about further stimulus, Krugman … Continue reading →

Posted in Bonds, Commodities, Credit, Currency, Equities, Gold, Policy, Politics, Sovereign Risk | Tagged , , , | 2 Comments

“All that liquidity ends up not where it is supposed to be…”

Posted on October 13, 2010 by macromon

Great CNBC interview (click for video) with British historian, Niall Ferguson.  It’s worth the 5 minutes of your time.  We’re amazed how well Ferguson understands the global economy and articulates the risks better than many trained economists.   Money quotes: “There … Continue reading →

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Rising Tide (of liquidity) Lifts All Boats

Posted on October 12, 2010 by macromon

Great chart from Active Trader of the S&P5oo correlation with other markets.  Have you noticed recently that all markets are moving together?  U.S. Treasuries, domestic and foreign stocks, Greek Bonds, EM Debt, commodities, and foreign currencies all in lockstep? This … Continue reading →

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Europe’s Ricardian Equivalence vs America’s Keynesianism

Posted on October 11, 2010 by macromon

We thought this to be the most interesting chart of the recently released World Economic Outlook from the IMF.  Japan’s 2011 public sector funding requirement is a stunning 60 percent of GDP, which includes the rollover of maturing debt equivalent … Continue reading →

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Let the year-end chase begin

Posted on October 11, 2010 by macromon

Great heat map of the ETF space YTD performance.   Precious metals, real estate, Hong Kong, India, and some selected Asian ETFs have been been on fire this year.  Rather than chasing the winners,  under invested capital will most likely be … Continue reading →

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The Store of Value Trade

Posted on October 8, 2010 by macromon

Commodity prices closed at two year highs.  Bloomberg writes, The Reuters/Jefferies CRB Index of 19 raw materials jumped as much as 2.7 percent to 295.17, the highest level since Oct. 15, 2008. Every price advanced. Wheat, soybeans and corn led … Continue reading →

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