Tag Archives: QE2

Week in Review: Happy Father’s Day!

After another testy week for the global markets the major U.S. equity indices currently sit right at support around their 200-day moving averages.  The NASDAQ pulled down by weakness in Apple and Google closed the week below its 200-day for … Continue reading

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The Great QE2 Flush Out

We’ve updated our Treasury flow charts with new data from today’s release of the Federal Reserve’s Flow of Funds Accounts.   The quarterly data are seasonally adjusted and annualized.    They reveal quite an interesting picture. In Q1 2011, the Fed’s … Continue reading

Posted in Bonds, Budget Deficit, Charts, Dollar, Equities, Monetary Policy, Sovereign Debt | Tagged , , , , | 4 Comments

Is This Why Bill Gross Dumped Treasuries?

A couple of revealing charts from the Fed’s Flow of Funds data.   Both show net flows into Treasuries by creditor type and the Federal Government’s borrowing during each quarter.   Note, the quarterly data is annualized. The first chart illustrates how … Continue reading

Posted in Bonds, Budget Deficit, Charts, Fiscal Policy, Monetary Policy | Tagged , , | 14 Comments

POMO Squeeze – Bonds Rally

The Fed really got its money worth today, buying $2 BN of bonds with maturities in the range of  08/15/2028 – 11/15/2040.    Long-term interest rates fell 10-20 bps.  Just another example of how bonds behave when the parents are home.  … Continue reading

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Fed Ownership of the U.S Treasury Curve

Here’s an interesting chart we threw together showing the Fed’s ownership of Treasury securities maturing in each year on the curve.  There are no bonds maturing in 2032-35 due to the temporary discontinuance of the 30-year earlier in the millennium, … Continue reading

Posted in Black Swan Watch, Bonds, Budget Deficit, Credit, Economics, Fiscal Policy, Monetary Policy, Policy, Politics, Sovereign Debt, Sovereign Risk | Tagged , , , , | 9 Comments

Republicans Pound Fed, “Lasso” Gold Rally

On September 30th we wrote (click here)  of the “hard money inclinations” of the Republicans and how a electoral victory may put pressure on the Federal Reserve to reign in their money printing.  On election night, we also posted the … Continue reading

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G20 Risk: “China says G20 should monitor US Fed” – SMH

Though the ugly bond auction got the headline, there’ s no doubt part of this afternoon’s reversal in many key stocks and commodities was partially caused by concern the G20 may turn into a fiasco as members use the occasion … Continue reading

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QE2, Trade Deficits, and the G20

Given next week is the G20 in Seoul and the U.S. is pressing to address trade balances,  we thought the following chart from the Congressional Research Service is quite timely.  Trade deficits are big drag on GDP (see chart below)  … Continue reading

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Gold and the QE War?

This is going to an interesting week for gold.  We expect some currency fireworks as the Bank of Japan draws a line in the sand for the Yen around the 80 level.  Will the Japanese respond to QE2 with more … Continue reading

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US Budget Deficit 9th Largest Economy in the World

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