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Keyword: treasuries

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  • Meet The Brand New, And Shocking, Third Largest Foreign Holder Of US Treasurys

    03/18/2014 10:31:37 AM PDT · by Errant · 10 replies
    Zero Hedge ^ | 18 March, 2014 | Tyler Durden
    Something hilarious, and at the same time pathetic, happened earlier today: at precisely 9 am the US Treasury released its delayed Treasury International Capital data (which was supposed to be released yesterday but was delayed because it snowed) which disclosed all the latest foreign Treasury holdings for the month of January. Among the key numbers tracked and disclosed, was that China's official holdings increased from $1.270 trillion to $1.284 trillion, that Japan holdings declined by a tiny $0.2 billion, that UK holdings increased by $7.8 billion to $171 billion, and that holdings of Caribbean Banking Centers, aka hedge funds, declined...
  • Obama & Putin - Trapped In Macho Game Of “Chicken” Over Ukraine - Whole World Could Pay The Price

    03/08/2014 12:25:04 PM PST · by Tolerance Sucks Rocks · 35 replies
    Freedom Outpost ^ | March 6, 2014 | Michael Snyder
    The U.S. government and the Russian government have both been forced into positions where neither one of them can afford to back down. If Barack Obama backs down, he will be greatly criticized for being "weak" and for having been beaten by Vladimir Putin once again. If Putin backs down, he will be greatly criticized for being "weak" and for abandoning the Russians that live in Crimea. In essence, Obama and Putin find themselves trapped in a macho game of "chicken" and critics on both sides stand ready to pounce on the one who backs down. But this is not...
  • China Starts To Make A Power Move Against The US Dollar

    02/21/2014 8:11:40 PM PST · by Tolerance Sucks Rocks · 38 replies
    Freedom Outpost ^ | February 21, 2014 | Michael Snyder
    In order for our current level of debt-fueled prosperity to continue, the rest of the world must continue to use our dollars to trade with one another and must continue to buy our debt at ridiculously low interest rates. Of course the number one foreign nation that we depend on to participate in our system is China. China accounts for more global trade than anyone else on the planet (including the United States), and most of that trade is conducted in U.S. dollars. This keeps demand for our dollars very high, and it ensures that we can import massive quantities...
  • Did the EU Bail Out the US in December?

    02/20/2014 8:44:51 PM PST · by Tolerance Sucks Rocks · 3 replies
    Last Resistance ^ | February 19, 2014 | Michael Minkoff
    It’s Wednesday. So it’s time for more bad news. If you’ve been paying attention, you will have already noticed that the United States is headed toward a cliff of imminent destruction at astonishing speeds. Our financial situation is dire, our political situation is dismal, our international situation is tenuous, and our cultural situation is pathetic. It’s sad. I didn’t think my generation would live to see this, but it looks like America is past the point of no return in its drive toward complete collapse.The most recent sign of doom in the financial sector is the alarming news that China...
  • Super Premium Treasuries and Janet Yellen

    10/08/2013 6:39:44 PM PDT · by whitedog57 · 8 replies
    Confounded Interest ^ | 10/08/2013 | Anthony B. Sanders
    Here is an interesting idea from UBS interest rate strategists Mike Schumacher and Boris Rjavinski. It is called “super premium Treasuries.” Here is how it works. 1. The U.S. government takes in $277 billion in tax revenues each month, and spends $452 billion each month, for a monthly deficit of around $175 billion. 2. It also has, on average, call it $100 billion of Treasury notes coming due each month. Instead of just rolling those Treasuries — paying them off at 100 cents on the dollar by issuing new Treasuries at 100 cents on the dollar — it should pay...
  • $3.39T: Fed Owns More Treasuries and MBS Than Public Debt Amassed From Washington Through Clinton

    09/22/2013 3:06:19 PM PDT · by Olog-hai · 23 replies
    Cybercast News Service ^ | September 22, 2013 - 3:47 PM | Terence P. Jeffrey
    The same day that the Federal Reserve’s Federal Open Market Committee announced last week that the Fed would continue to buy $40 billion in mortgage-backed securities (MBS) and $45 billion in U.S. Treasury securities per month, the Fed also released its latest weekly accounting sheet indicating that it had already accumulated more Treasuries and MBS than the total value of the publicly held U.S. government debt amassed by all U.S. presidents from George Washington though Bill Clinton. Since the beginning of September 2008, in fact, the Fed’s ownership of Treasury securities and MBS has increased sevenfold. As of the close...
  • 10yr Treasury Yield Highest Since July 28, 2011 As Jackson Hole Retreat Begins

    08/19/2013 7:38:56 AM PDT · by whitedog57
    Confounded Interest ^ | 08/19/2013 | Anthony B. Sanders
    Global sovereign yields are up across the board this morning. wbm081913 And the US Treasury 10 year yield is at its highest point since July 28, 2011 — the is over 2 years. ust10081913 Fed Chair Ben Bernanke will not be attending the retreat this year. The Federal Reserve began buying Treasuries as part of its outright purchase program. Here is a list of long-term bond purchase targets. Clearly, The Fed is hoping to push down the long-end of the curve. yc081913 Has The Fed run out of ammo? I think the answer is yes.
  • Fed Fears: Jobless Claims Fall, Treasury Yields Rise To 2 Year High, Dow Futures Down

    08/15/2013 5:54:18 AM PDT · by whitedog57 · 6 replies
    Confounded Interest ^ | 08/15/2013 | Anthony B. Sanders
    Initial jobless claims fell to 320,000 continuing a positive trend continuing a downward trend. ijc081513 The reaction in the 10 year Treasury yield? Up around 8.5 basis points. ust100813 Do I detect a trend since May 1, 2013? The 10 year yield has risen to the highest level in 2 years. ust10081513 Dow Jones Industrials futures down 113. But its only 8:41 in the morning. djiafut081513 So, good employment news scares the market that is concerned with Fed punch bowl removal.
  • Sovereign Yield Jumps on Today’s Part-time Jobs Report (US 10 Year Treasury Up 20 Basis Points)

    07/05/2013 10:37:00 AM PDT · by whitedog57
    Confounded Interest ^ | 07/05/2013 | Anthony B. Sanders
    Investors apparently liked today’s jobs report of +195,000 non-farm employment, despite full-time jobs falling by -240,000. wbm070513 And the US Treasury 10 year yield rose about 20 basis points. ust10070513 The Fannie Mae 4% MBS took a dive with the rise in Treasury yields. fn4pr And the duration of the Fannie Mae 4% MBS continues to climb. fn4dur All this does not bode well for mortgage rates. Let’s see how the Freddie Mac US Mortgage Market Survey 30 Year Homeowner Commitment rate does this week. fredconf The US dollar spot rate is up. usdollr070513 Commodities? Gold and silver way down,...
  • Stockton, CA bankrupt: Expect Cyprus like solution for bond holders

    04/02/2013 6:05:54 AM PDT · by outpostinmass2 · 20 replies
    It is not surprising that they quickly found the source of their pain, the bond holders; those money loving, rich old white guys who know nothing but greed. It is their fault that huge lifelong pensions and free healthcare for life, regardless of how long you worked for the city has not turned Stockton into the utopia it should have been. It is amazing how greedy some people are, they simply don’t care about their fellow man. In a case that will most likely go to the US Supreme Court, the municipal bondholders will be pitted against the California Public...
  • Are treasuries a way of avoiding the bank collapse?

    04/02/2013 6:39:00 AM PDT · by E. Pluribus Unum · 40 replies
    04/02/2013 | E. Pluribus Unum
    If I move my savings to a brokerage account and purchase 2-year treasuries (the shortest term available at my broker) would that at least protect me from having my money stolen by the banks?
  • China's Share of US Treasurys Quietly Falls (Shifting investments to hard assets)

    12/18/2012 8:31:59 AM PST · by SeekAndFind · 3 replies
    <p>We have Republican Rep. Michele Bachmann of Minnesota to thank for that bon mot—a play on the name of outgoing Chinese President Hu Jintao—about the country's massive holdings of U.S. Treasury debt. But, while America's dependence on the largess of foreigners is greater than ever, China's role is quietly receding.</p>
  • The Fiscal Cliff Is A Mole Hill Compared TAG Program Expiry

    11/12/2012 7:38:32 PM PST · by blam · 24 replies
    TMO ^ | 11-12-2012 | Shah Gilani - Money Morning
    The Fiscal Cliff Is A Mole Hill Compared TAG Program Expiry Stock-Markets / Credit Crisis 2012Nov 12, 2012 - 07:24 AM By: Money Morning Shah Gilani writes: Everyone is afraid of falling off the "fiscal cliff." But there's another dangerous countdown clock about hit to zero. And no one is talking about it, even though it will spell even more financial problems for us all. At midnight on December 31, 2012, the Transaction Account Guarantee (TAG) program will expire. The TAG program was initiated at the height of the credit crisis when depositors were fleeing banks for fear they would...
  • Destruction of the US Dollar

    10/15/2012 2:04:32 PM PDT · by Tolerance Sucks Rocks · 10 replies
    Patriot Action Network ^ | October 14, 2012 | Roger O'Daniel
    The picture below shows $15 trillion dollars worth of $100 bills on $10 million dollar pallets stacked on top of each other over an area that is one third larger than a regulation football field. An electronics van is parked between the stack and the Statue of Liberty. A single $100 million dollar pallet rests in front of the truck’s cab. See it?Recently, I reported that the Federal Reserve Bank (FED) secretly gave ten trillion dollars of interest-free loans to over a dozen European banks to shore up the Euro and keep them financially solvent. I later found out that...
  • Fannie Mae MBS Spread to 10 year Treasuries GOES NEGATIVE!

    09/26/2012 1:25:34 PM PDT · by whitedog57 · 16 replies
    Confounded Interest ^ | 09/26/2012 | Anthony B. Sanders
    QE3 certainly has wreaked havoc on the agency mortgage-backed securities market. The Fannie Mae 30 year current coupon (rate to MBS investors on new Fannie MBS) spread over 10 year Treasures has gone NEGATIVE! As in -3.65 basis points. But if we compare the Fannie 30 year current coupon to 5 year Treasury yields, we have a positive yield spread of about 100 basis points. Meanwhile, Fannie Mae 3.5 MBS duration just went negative! So, The Fed’s QInfinity has really done a number on MBS yields … and risk. MBS investors may be lining up to dump agency MBS on...
  • China And Russia Are Ruthlessly Cutting The Legs Out From Under The U.S. Dollar

    09/12/2012 9:19:48 PM PDT · by Tolerance Sucks Rocks · 33 replies
    The Economic Collapse ^ | September 11, 2012 | The Economic Collapse
    The mainstream media in the United States is almost totally ignoring one of the most important trends in global economics. This trend is going to cause the value of the U.S. dollar to fall dramatically and it is going to cause the cost of living in the United States to go way up. Right now, the U.S. dollar is the primary reserve currency of the world. Even though that status has been chipped away at in recent years, U.S. dollars still make up more than 60 percent of all foreign currency reserves in the world. Most international trade (including the...
  • Treasury Yields Hit New Record Lows

    07/23/2012 9:21:31 AM PDT · by Qbert · 10 replies
    WSJ ^ | July 23, 2012 | CYNTHIA LIN
    NEW YORK—The search for financial safety caused by deepening worries about Europe's debt crisis fired up demand for U.S. Treasurys, dragging yields on 10- and 30-year debt to new record lows. Benchmark 10-year notes yielded 1.409% as U.S. trading began, piercing below its previous intraday record of 1.437% set on June 1 on the back of a weak U.S. employment report. The 30-year ...
  • DYLAN GRICE: The Next Crisis Will Be Born Out Of The US Treasury Market

    07/01/2012 6:09:53 AM PDT · by blam · 14 replies
    TBI ^ | 7-1-2012 | Matthew Boesler
    DYLAN GRICE: The Next Crisis Will Be Born Out Of The US Treasury Market Matthew Boesler Jul. 1, 2012, 6:23 AM SocGen investment strategist Dylan Grice does not think "safe-haven" assets are very safe. In Grice's latest note to clients, he compares the illusion of safety created by faulty regulation before the 2008 financial crisis to the new, impending wave of financial regulation on the table like Dodd-Frank in the U.S. and Basel requirements on a global scale. Grice warns "madness is going on in the government bond markets" today, furnishing this long term chart of US Treasury yields going...
  • MARC FABER: US Treasuries Remind Me Of The Nasdaq In 1999--The Biggest Bubble Ever

    06/11/2012 1:11:36 PM PDT · by SteelToe · 2 replies
    Business Insider ^ | June 11, 2012 | Ben Duronio
    Marc Faber of the Gloom, Boom, and Doom report appeared on Bloomberg T.V. recently, discussing the current bull market around U.S. Treasuries. The host asked if U.S. Treasuries are "the biggest bubble ever." Faber's response was "yes." If you me asked about the Nasdaq in December 1999, I would have said this is the biggest bubble ever. And yet the Nasdaq continued to go up 30 percent until March 21 2000, and then what happened and how have these people faired since they invested in the Nasdaq in the final months of 1999 and early months of 2000? It's been...
  • U.S. Treasury Bond 10-Year Yield Is Heading Up Above 6%

    03/25/2012 12:11:35 PM PDT · by blam · 6 replies · 3+ views
    TMO ^ | 3-25-2012 | Andrew Butter
    U.S. Treasury Bond 10-Year Yield Is Heading Up Above 6% Interest-Rates / US Bonds Mar 25, 2012 - 06:18 AM By: Andrew Butter The last time the yield on the 10-Year US Treasury dipped below 2% was in 1941; just before (not just after), the Japanese attack on Pearl Harbor. Perhaps then the recent 1.8% low was not just because of Euro-refugees, perhaps we are on the cusp of another Black Swan tail-risk potentially as devastating as World War II? Or perhaps there is another explanation? This article is a continuation of a series started two years ago which correctly...
  • For The 1st Time In History, Fed Will Buy AND Sell Treasurys At The Same Time On Friday

    11/30/2011 1:09:25 PM PST · by tcrlaf · 7 replies
    Zerohedge ^ | 11-30-11 | Tyler Durden
    Following today's unprecedented POMO failure due to "system difficulties" (one would hope the Fed's POMO machine does not start and stop every time someone pulls the plug from the socket), Brian Sack's team (not to be confused with the PWG team of Eric Mindich) had to reschedule the literally failed auction. As it turns out, the first opportunity to sell $8-$8.75 billion in 2013 bonds is on December 2. And unlike the December 21 "reverse" POMO which is due to take place at 1:15pm, the rescheduled bond sale will instead occur at its usual time of 10:15-11:00am. Ironically, this is...
  • US Treasury considers new debt security

    10/23/2011 6:01:54 PM PDT · by MontaniSemperLiberi · 16 replies
    ft.com ^ | October 23, 2011 | Michael Mackenzie and Robin Harding
    The US Treasury and Wall Street dealers are set to discuss whether to introduce a new debt security to help finance the country’s mounting budget deficit in the coming years. Topping the agenda of a meeting on Friday between Treasury officials and dealers, who underwrite US government debt sales, is the possible introduction of floating-rate notes. In contrast to normal fixed-rate Treasuries, which pay the same coupon throughout their lifespan, the payment to investors from floating-rate notes would go up or down as the Federal Reserve changed short-term interest rates. That could make them attractive to investors who think that...
  • Prove market is manipulated - post stocks NOT falling hard today!

    09/22/2011 6:11:44 PM PDT · by MeneMeneTekelUpharsin · 31 replies
    22 Sep. 2011 | Mene Mene Tekel Upharsin
    Post stocks which didn't fall dramatically today.... if we were REALLY having a market crash, everything across the board would fall. Example... Auto Zone Inc. (AZO) -- only went down about $6 per share from $322...not much of a crash there...regular fluctuations. Must be hundreds of others just like it. The markets are nothing but pure manipulation.
  • Split Fed Likely To 'Twist': A '60s-Era Policy Flop

    09/21/2011 8:23:06 AM PDT · by Slyscribe · 4 replies
    Investor's Business Daily ^ | 9/20/2011 | Scott Stoddard
    A sharply divided Federal Reserve is expected to take modest steps Wednesday to bolster stagnant growth and hiring amid European debt woes. The efforts likely won't have a dramatic impact, analysts say. But inflation concerns may preclude stronger medicine, and in any case prior doses of shock-and-awe easing didn't result in a self-sustaining, robust recovery.
  • Bond markets signal 'Japanese' slump for US and Europe

    08/18/2011 4:56:17 PM PDT · by bruinbirdman · 6 replies
    The Telegraph ^ | 8/18/2011 | Ambrose Evans-Pritchard
    The global credit markets are braced for deflation and perhaps depression. Panic flight to safety has pushed the yield on 10-year US Treasuries below 2pc for the first time in American history, exceeding the extremes of the Lehman crisis and the banking crash of the 1930s. Investors scrambled to buy the bonds of strongest industrial states on Thursday on fears of a double-dip recession on both sides of the Atlantic and a European banking crash, driving down their returns to investors. German yields fell to 2.08pc and Switzerland's 3-month rates have turned deeply negative. Markets were stunned by a plunge...
  • China May Stop Buying Treasurys as Growth Slows: Roach

    08/17/2011 2:43:17 PM PDT · by Qbert · 10 replies
    CNBC ^ | 17 Aug 2011 | Margo D. Beller
    The weakness of the American consumer is having repercussions in China, which may stop buying more U.S. Treasurys as it focuses on internal consumption rather than exports, Stephen Roach, the non-executive chairman of Morgan Stanley Asia, told CNBC Wednesday That could result in "higher interest rates and/or a weaker dollar, and we’re not going to be able to fund ourselves on the terms we have been funding ourselves externally," he said. [Snip] "This is China’s wakeup call," he warned. China can "no longer afford to stay the course of export-led growth that is hooked on the bandwagon of the American...
  • The Real Economic Story

    08/08/2011 3:32:22 PM PDT · by Aria · 25 replies
    DickMorris.com ^ | August 8, 2011 | Dick Morris
    Harry Truman, frustrated by economists who couched their opinions by saying "On the one hand...but on the other hand," wanted a one-handed economist. I've got one. James Fitzgibbon, director of the Highlander Fund, has been spot on in predicting the course of economic events for the past three years. As each estimate of GDP growth came in, I would e mail him and he would explain that the growth rate was materially overstated and then explain that it would soon be adjusted downward. And it was. He has been accurate in predicting a long, long term recession with only a...
  • So Why Is The Initial Reaction Of The S&P Downgrade of our Debt For Treasury Prices To Go Up?

    08/08/2011 12:58:57 PM PDT · by SeekAndFind · 7 replies
    Zero Hedge ^ | 08/08/2011 | Tom McCormick of Frost National
    The S&P downgrade was not as much a comment on the numbers of credit service as a comment on the political process. The political process is about confronting the probability of a hyper-inflationary collapse of our currency if fiscal irresponsibility, entitlement spending and bank bailout mentality are not addressed. If the credit rating firms had continued the charade of AAA quality, it would merely enable the not sustainable march toward hyper-inflation. Ultimately, the S&P downgrade of Treasuries is a downgrade of all dollar denominated assets. If we can print dollars to pay Treasury debt, it is the currency that is...
  • After the downgrade: Rates on Treasuries stay low

    08/08/2011 6:44:54 AM PDT · by mlocher · 15 replies
    CNNMoney via Fidelity.com ^ | August 8, 2011 | Hibah Yousuf
    While a lower credit rating should increase the United States' borrowing costs, Treasury yields dropped Monday, the first day investors could react to Standard & Poor's downgrade of U.S. debt. That's because S&P's unprecedented move adds more uncertainty to the market, and greater uncertainty drives investors out of risky assets such as stocks and into perceived safe havens, including U.S. Treasuries. The yield on the benchmark 10-year Treasury note fell to 2.47% Monday morning from 2.56% late Friday. The yields on other Treasuries also retreated. "The U.S. Treasury sector remains the largest and most liquid fixed-income market in the world...
  • DID Standard & Poor Shoot Itself In The Foot By Downgrading The USA From AAA To AA+?

    08/07/2011 10:41:32 PM PDT · by Razzz42 · 23 replies
    www.martinarmstrong.org ^ | August 6, 2011 | Martin A. Armstrong
    ...Domestically, you are still better off with federal paper than state or municipals. The S&P is merely confirming the Sovereign Debt Crisis. There is no doubt that we have a serious Sovereign Debt Crisis. However, if that is the real reason for the S&P Downgrade, then it should apply to ALL countries and the real rating should be BELOW JUNK! Why? There is NO collateral! If a country defaults, you cannot go to court and seize property. You can’t run down to the National Art Gallery and start walking out with Renoirs. Illustrated above is a chart of the Total...
  • Geithner-U.S. Treasuries still safe after downgrade (Administration in complete denial)

    08/07/2011 5:17:05 PM PDT · by tobyhill · 44 replies
    reuters ^ | 8/7/2011 | reuters
    U.S. Treasury debt is as safe as it was before a Standard & Poor's rating downgrade of the United States and Congress' "damaging" debate over raising the country's debt limit, Treasury Secretary Timothy Geithner said on Sunday. Geithner, in an interview with NBC/CNBC television, also called on European leaders to ensure that there is an "unequivocal financial backstop" for euro zone governments facing fiscal and debt problems. He added that a double-dip recession was unlikely if governments and central banks made good decisions. Asked whether Treasuries were as safe now as they were last week, Geithner replied: "Absolutely. And the...
  • Rating downgrade: Did S&P get it right?

    08/07/2011 5:33:43 PM PDT · by mlocher · 35 replies
    CNNMoney.com via Fidelity.com ^ | August 7, 2011 | Jeanne Sahadi
    A credit rating is an informed opinion. Nothing more. Nothing less. That helps explain why one major credit rating agency -- Standard & Poor's -- has downgraded the United States, while another -- Moody's (Symbol : MCO Loading... ) -- has chosen to affirm its credit rating with caveats. Both agencies had the same essential set of facts about U.S. debt: There's a lot of it now. There's a lot more of it to come. And there's very little in the way of actual policy today that looks likely to seriously change that outlook. Where the agencies differ, however, is...
  • Dollar to drop on S&P move; safe-haven demand seen

    08/07/2011 3:57:34 AM PDT · by markomalley · 6 replies
    Reuters/Yahoo ^ | 8/7/11 | Saikat Chatterjee
    The U.S. dollar may weaken and Treasury yields rise when Asian markets reopen on Monday, though any selling in response to ratings agency S&P's downgrade of the United States is likely to be tempered by the escalating crisis in the euro zone. The S&P cut in the U.S. long-term credit rating by a notch to AA-plus is an unprecedented blow and results from concerns about the nation's budget deficits and climbing debt burden. It called the outlook "negative," signaling another downgrade is possible in the next 12 to 18 months. "The initial reaction will be a high degree of uncertainty...
  • The Truth About Chinese Threats To Dump US Debt (Not Gonna Happen Unless They're Suicidal)

    07/31/2011 12:18:03 PM PDT · by SeekAndFind · 31 replies
    Business Insider ^ | 07/31/2011 | Patrick Chovanec, An American Perspective From China
    With the political clash over the U.S. debt ceiling in full swing this week, I’ve been inundated with people asking variants of the same question: with U.S. in (temporary) danger of defaulting, will China, which holds at least $1.2 trillion worth of U.S. Treasuries, finally get fed up and dump its share of the U.S. national debt? It certainly sounded that way, with the official People’s Daily condemning Congress’ handling of the debt crisis as “irresponsible” and “immoral,” while Chinese diplomats urgently pressed their American counterparts for reassurance. In fact, as I pointed out in a National Public Radio (NPR)...
  • S&P, Moody's Irrelevant on US Treasurys (Given their poor record, take them with a grain of salt)

    07/27/2011 6:40:52 AM PDT · by SeekAndFind · 9 replies
    Smart Money ^ | 07/27/2011 | Jack Hough
    To hear politicians, the fate of modern finance is now being decided by perhaps a dozen Manhattan bond geeks. Their job at Standard & Poor's and Moody's is to paste letter grades on governments so bond buyers can decide which are good for the money. Even America's president fears them. "A six-month extension of the debt ceiling might not be enough to avoid a credit downgrade," he warned the nation in an address Monday night, having already listed some of the consequences: "Interest rates would skyrocket on credit cards, on mortgages and on car loans." Given that Treasury bonds have...
  • U.S. likely to lose top rating: economists

    07/26/2011 9:56:59 PM PDT · by mlocher · 13 replies
    Reuters via Fidelity.com ^ | July 26, 2011 | Pedro da Costa and Andy Bruce
    WASHINGTON/LONDON (Reuters) - The United States will lose its top-notch AAA credit rating from at least one major rating agency, according to a Reuters poll that also found wrangling over the debt ceiling has already damaged the economy. A small majority of economists -- 30 out of 53 -- surveyed over the past two days said the United States will lose its AAA credit rating from one of the three big ratings agencies -- Standard & Poor's, Moody's or Fitch. Respondents saw a 20 percent chance of a new recession over the next year, a prospect that some economists say...
  • The $1 Billion Armageddon Trade Placed Against The United States Bond Market

    07/25/2011 7:34:44 PM PDT · by blam · 61 replies
    TMO ^ | 7-25-2011 | Money Morning
    The $1 Billion Armageddon Trade Placed Against The United States Bond Market Interest-Rates / US Bonds Jul 25, 2011 By: Money Morning Jack Barnes writes : Someone dropped a bomb on the bond market Thursday - a $1 billion Armageddon trade betting the United States will lose its AAA credit rating. In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world. The massive trade wasn't placed in bonds themselves; it was placed in the futures market. The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03...
  • It Has Started: Wall Street Is Preparing For A Doomsday Scenario

    07/21/2011 7:26:09 AM PDT · by blam · 28 replies
    TBI ^ | 7-21-2011 | ya Wachtel
    It Has Started: Wall Street Is Preparing For A Doomsday Scenario Katya Wachtel Jul. 21, 2011, 9:15 AM If you're simply looking at their public statements, Wall Streeters seem to be alarmed about the debt crisis, but don't appear to be sliding into panic mode. In fact, they're just really good actors. Across the financial sector, many are preparing for a debt doomsday scenario, in which the U.S does in fact default, the New York Times reports. Firms are "taking steps to reduce the risk of holding Treasury bonds or angling for ways to make profits from any possible upheaval."...
  • Debt Downgrade Catastrophe Ahead?

    07/20/2011 6:52:33 PM PDT · by Pride_of_the_Bluegrass · 11 replies
    The Kudlow Report ^ | CNBC Video
    Video at Link
  • PIMCO's Bill Gross: Still Early/Wrong, And Now Even Earlier/Wronger. Bond Yields are Down.

    05/27/2011 6:32:39 AM PDT · by SeekAndFind
    Wall Street Journal ^ | 05/26/2011 | Mark Gongloff
    The yield on the 10-year Treasury note is now at 3.06%, its lowest of the year, well below its 200-day moving average and starting to worry the psychologically important 3% level, which it hasn’t broken since last December. It will not break that level any time soon, however, Pimco chieftain Bill Gross declared to Bloomberg TV today. He once again stood by his call that bond yields will rise once the Fed stops buying bonds under its QE2 program in June, a call he has been making since early March, while watching bond yields march steadily lower. Just two days...
  • No Buyers For Treasuries aka "Toxic Waste"

    05/02/2011 2:51:47 PM PDT · by blam · 6 replies
    TWS ^ | 5-2-2011 | Bob Chapman
    No Buyers For Treasuries aka "Toxic Waste" Bob ChapmanMay 2, 2011 We believe there will be something similar to a QE3 by another name and the Fed will probably have to create some $2.5 trillion to buy Treasuries, Agencies, and toxic waste and perhaps inject funds into the economy. Japan certainly won’t be a buyer and probably will be a seller. China has indicated that they won’t be purchasers in the future either. The question also arises concerning the continued purchase of these securities by countries in the oil producing Gulf States, which are in turmoil. The three countries make...
  • Treasury Yields Fall On U.S. Debt Warning? Don’t Blame Me, I Invested With Kodos

    04/18/2011 3:52:21 PM PDT · by Slyscribe · 1 replies
    IBD's Capital Hill ^ | 4/18/2011 | Ed Carson
    Has Treasury Secretary Geithner removed his mask, revealed himself to be Kang and mocked the alternatives: “What are you going to do, buy Japanese bonds and throw away your money? It’s a one-safe haven world.” America has been insulated from the consequences of its reckless fiscal policy because of the dollar’s reserve-currency status and Treasuries’ value as a safe haven. It’s in no one’s interest to see the U.S. collapse. But something that can’t go on forever, won’t.
  • PIMCO Officially Goes SHORT The US Treasury Market

    04/11/2011 8:52:38 AM PDT · by taildragger · 16 replies
    The Business Insider ^ | 04/11/2011 | Joe Weisenthal
    Last month bond giant PIMCO officially abandoned Treasuries completely.
  • When Will Fed-Created Melt-Up Turn Into a Meltdown?

    04/10/2011 6:30:38 AM PDT · by MontaniSemperLiberi · 24 replies
    minyanville.com ^ | Apr 08, 2011 | Russ Winter
    When does the meltup switch into a full-fledged meltdown of the global economy? In spite of all warning signs that the Fed has ignored over the past few months, the switchover is now transmitting at such a rapid pace that it could happen in either one great shock or in a series. In my view, the 320 level on the CRB was more than enough to trigger the switch, and it corresponds with the first riots in Tunisia and then Egypt. If the Fed continues its purchases, we can calculate that each new $100 billion of Treasury purchased will add...
  • Debt Problem: Who In The World Is Going To Buy the Billions Of Dollars Of Debt We Keep Pumping Out?

    03/19/2011 1:21:54 PM PDT · by SeekAndFind · 13 replies
    The Economic Collapse ^ | 03/18/2011 | Michael Snyder
    Is the U.S. government on the verge of a massive debt problem? For years, the U.S. government has been able to borrow all the money that it has wanted to at extremely low interest rates. But now many of the lending sources that the U.S. government has been depending on are drying up. Even before this recent crisis in Japan, a number of big players were moving away from U.S. Treasuries and the U.S. Federal Reserve was having to step in to pick up the slack. But now this debt crunch is about to get a whole lot worse....
  • Japanese Fallout May Hit US Treasuries. Fallout could spread further in the financial markets.

    03/19/2011 1:09:43 PM PDT · by SeekAndFind · 3 replies
    Euro Pacific Capital ^ | 03/18/2011 | John Browne
    Japan is facing two meltdowns in the wake of its devastating earthquake. The first, and more critical, is the meltdown at the Fukushima I Nuclear Plant, 150 miles north of Tokyo. Surely, this is the greater near-term threat. But long-term, another threat looms, having to do with the Japanese government’s response to the former. As the fourth largest economy in the world, behind the EU, US, and China, any major setback in Japan likely will have widespread repercussions. Japan is also the third largest holder of US Treasuries, behind the United States and China. While it is too early even...
  • Is this why Bill Gross dumped Treasuries?

    03/18/2011 7:16:35 AM PDT · by SeekAndFind · 4 replies
    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 QE2 flushed domestics out of Treasuries and effectively funded 63 percent of the budget deficit in Q4. The Treasury is prohibited from directly selling bonds to the central bank, but effectively finances the government through POMO.Given that a large portion of the Rest of World category are central banks recycling BOP surpluses, it’s likely that 90 percent of the U.S. budget...
  • Who Will Buy Treasuries After Fed Halts Printing Press?

    03/16/2011 7:57:46 AM PDT · by Slyscribe · 20 replies
    Investor's Business Daily ^ | 3/15/2011 | Jed Graham
    Without a word about Japan's disaster, the Federal Reserve on Tuesday signaled that the recovery and the timetable for stopping its money-printing press are on track. While the Fed was likely taking care not to fuel fears about a still-evolving crisis, economists said they expect the central bank to end its $600 billion in Treasury purchases by June 30 as planned.
  • Will Japan Dump US Bonds For Disaster Costs?

    03/13/2011 9:02:48 PM PDT · by The Magical Mischief Tour · 20 replies · 1+ views
    CNBC ^ | 03/13/2011 | CNBC
    Investors in the Treasury market will begin this week confronting the familiar specter of possible post-disaster selling of U.S. Treasurys by insurers, following the devastating earthquake in Japan on Friday. But not everyone in the market is convinced that worries over insurer selling are grounded in reality, and analysts pointed to a host of other issues that could drive Treasury price movements in the coming week. In Japan, worries that insurance companies would need to sell Treasurys to raise cash may give way to a flight to safety into U.S. government bonds if the threat of nuclear meltdown persists. Prime...
  • BILL GROSS: June 30, 2011 Will Be Viewed As America's New "D-Day"

    03/02/2011 8:06:16 AM PST · by blam · 34 replies
    The Business Insider ^ | 3-2-2011 | Joe Weisenthal
    BILL GROSS: June 30, 2011 Will Be Viewed As America's New "D-Day" Joe Weisenthal Mar. 2, 2011, 9:58 AM In his latest note, Bill Gross wonders who will buy Treasuries when the Fed stops. We posted his chart here on that. He ends with a big conclusion: Investors should view June 30th, 2011 not as political historians view November 11th, 1918 (Armistice Day – a day of reconciliation and healing) but more like June 6th, 1944 (D-Day – a day fraught with hope for victory, but fueled with immediate uncertainty and fear as to what would happen in the short...