Bonds Archive

Japan’s debt approaches 1 quadrillion yen

Debt approaching 1 quadrillion, and the highest as a % of GDP anywhere I know of, and still no bond vigilantes in sight! Who would have thought??? Not to mention decades of 0 rates, massive QE, and in general the BOJ trying as hard as it can to inflate. Maybe it’s not ...Read More

No ‘Massive Mark to Market’ Event for Bonds This Year: Friesen

No ‘Massive Mark to Market’ Event for Bonds This Year: Friesen By Madeleine Lim Jan. 23 (Bloomberg) — While “shortage of yield” will provide support for stocks, unlikely to see “great rotation” out of USTs and investment-grade bonds this year, III Associates principal and Co-CIO Garth Friesen said in interview yesterday. Growth ...Read More

Cliff notes

Jobless Claims Fell More Than Expected, Down by 25,000 to 370,000 I haven’t written much this week because I haven’t seen much to write about. Still looks like both the economy and the markets are discounting the cliff. And still looks to me like ex cliff GDP would be growing at about ...Read More

China hates QE

This was my suspicion back in maybe May, 2011 when Bernanke made his strong dollar speech after China had let their T bill portfolio run off after the Fed had begun QE1. Either China doesn’t understand QE or they are taking this position anyway, for further political purpose. And in any case, ...Read More

QE follow up

It’s been about a week, and the initial reactions are already wearing off and markets settling in. The lasting effects are those of the income lost to the economy as the Fed earns the interest on the securities it buys instead of the economy. This reduces the federal deficit and is a ...Read More

ECB to sterilize bond purchases

>    >   (email exchange) >    >   ”To sterilize the bond purchases, the ECB will remove from the system elsewhere the same >   amount of money it spends, ensuring the program has a neutral impact on the money >   supply.” >    >   blimey… >    ECB Plan Said to Pledge Unlimited, Sterilized Bond-Buying ...Read More

Asmussen statement

>    >   (email exchange) >    >   On Wed, Aug 22, 2012 at 3:02 AM, wrote: >    >   You are totally right about him, I sent you a word doc with his exact words >   (emphasis mine) >    Repeat: Asmussen: ECB Wants To Eliminate Doubts About Euro 2012-08-20 05:36:05.371 GMT –First Ran On Mainwire At 2257 GMT/1857 ...Read More

Mike Norman MMT video

You’re the best!! Still laughing!!! ...Read More

MMT on the immediate restoration of the US’s AAA rating

Not that it matters, of course, but all’s that’s needed is for the Fed to guarantee that all US obligations mature at 100. The Fed is fully authorized to buy US tsy securities and can certainly buy them at maturity value on their maturity date, simply by crediting the appropriate accounts. And ...Read More

ECB August Meeting

Not to forget this is the just the beginning of ‘doing what it takes’ to sustain the euro, and make it ‘safe’ for investors. That’s all inclusive, though not necessarily immediate. And ‘anchoring’ the short end ‘automatically’ goes a very long way towards anchoring the long end with regard to risk premium. ...Read More