Category Archives: Bonds

Negative Yields Versus Negative Coupon Rates

Posted on August 8, 2019 by macromon

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 →

Posted in Bonds, Uncategorized | Tagged , | 13 Comments

“Rent Control” Problems Emerging In Bond Auctions

Posted on August 8, 2019 by macromon

  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 →

Posted in Bonds, Uncategorized | Tagged | 4 Comments

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

Posted on August 6, 2019 by macromon

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 →

Posted in Bonds, Uncategorized | Tagged , | 6 Comments

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

Posted on July 23, 2019 by macromon

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

Posted on July 16, 2019 by macromon

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

The Bear On The Balcony At Bretton Woods

Posted on July 15, 2019 by macromon

Ursa Major waits patiently as she watches over,  in amazement, the yield chasing salmon in a panic buying frenzy over fears of NIRP, ZIRP. negative and near zero bond yields forever and ever. The Bear on the Balcony is giving, …them … Continue reading →

Posted in Bonds, Uncategorized | Tagged | 13 Comments

QOTD: Go Josh!

Posted on April 4, 2019 by macromon

QOTD:  Quote of the Day https://twitter.com/reformedbroker/status/1113784568421736449?s=12

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Beware Of Retrofitting Fundamentals To Price Action

Posted on April 1, 2019 by macromon

See our post, Newton’s Q1 Law Of Motion For The S&P,  by clicking here   The past few weeks were a classic exercise in how markets tend to “retrofit” price action to their expectations of economic fundamentals and illustrates the … Continue reading →

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

Happy St. Patrick’s (Maweyn Succat) Day!

Posted on March 17, 2019 by macromon

Another Blast From The Past (BFTP).  Hard to believe this was seven years ago. Happy St. Patrick’s (Maweyn Succat) Day! St. Patrick, Ireland, St. Patrick’s Day. Simple, right? The man wasn’t even Irish! He was actually born in Britain around the … Continue reading →

Posted in Bonds, General Interest, Picture of the Day, PIIGS | Tagged , , , , , , | 1 Comment

“Crowding Out” Caused The Q4 Stock Swoon

Posted on February 26, 2019 by macromon

In what we consider one of our best and most timely all-time posts, The Gathering Storm In The Treasury Market 2.0, a must-read tome on the structural changes taking place in the U.S. Treasury market, we warned at the end of last … Continue reading →

Posted in Bonds, Uncategorized | Tagged , | 8 Comments