Bonds 02 (Sep 10 - Aug 12)

[winston]

Weekly Review

Bonds. 1.96% versus 1.96% 10 year U.S. Treasury.

Bonds were basically flat on the session, and the 10 year was actually flat.

Bonds were higher and yields were lower on the week. That is the sovereign debt issue that was discussed on Friday in some other headlines.

Some headlines were saying that the German confidence was helping the markets. Others said that the ongoing European sovereign debt crisis was hurting markets in Europe and helping some markets in the U.S. while stalling out equity markets.

Even the headlines are contradictory, but of course you know that.

It can even be contradictory within the same news source.

There are different writers with different takes, and you are left scratching your head over a mishmash of opinions.

Bonds were up nicely on the week. There is no issue with respect to the allure of U.S. bonds thanks to the ongoing problems in Europe.

We had the big jump in bonds when we had one of those weaker bond auctions in Europe a couple of weeks ago. We supposedly had better bond auctions this past week from Spain and Italy.

But U.S. Treasuries are still holding their gains. Even though these bond auctions were termed successful, we saw interest rates on the continent continue to rise.

As they continue to rise, we see our interest rates fall because money is being moved into U.S. Treasuries.

We also see credit default swap rates on the rise in Europe. The spreads are widening, and that means risk. The market makers have to widen those spreads to hedge their bets.

In any event, bonds had a good week in the U.S., at least holding their gains from the moves higher two weeks back.

Source: Investment House

[winston]

Weekly Review

Bonds. 1.93% versus 1.95% 10 year U.S. Treasury.

Bonds managed a modest gain. Bonds were stronger.

Indeed, they were stronger intraday at 1.88% yield on the low. Perhaps bonds were a bit worried about the GDP number.

Maybe not that much, as they bounced down from their highs.


Source: Investment House

[kennynah]

hdb issued bonds last week

[winston]

Weekly Review

Bonds. 1.88% versus 1.93% 10 year U.S. Treasury.

Bonds surged on fear.

Last night I said that they could take off again based on the numbers, and it broke the 1.9 handle.

This is crazy. Things are supposed to be getting better here, and we see the bond yields racing higher.

If they break over the high from a couple of weeks back, then Katy, bar the door. They will be running, baby, and that is not good.

As we saw last year, when they run, that is not necessarily great for the U.S. economy and for the world. It is a fear factor.

Bonds should be selling and yields should be rising if the U.S. economy is better, which is not the case.

Big money is moving into bonds for safety, and big money from the continent is moving into our bonds for safety as well.


Source; Investment House

[winston]

Weekly Review

Bonds. 1.84% versus 1.88% 10 year U.S. Treasury.

Bonds rallied yet again. The 10 year is trying to break back to the upside.

There was Bernanke talking, the Fed talking, and then what happened here? All of a sudden Europe was a problem again.

There was a gap down, a gap up, and a little island reversal.

Bonds have been moving higher ever since. Not in a straight line, but they are moving higher.

Now they are matching some prior resistance levels. They look in good shape to continue upside because there is nothing to end the fear.

We have Greece hanging out there, and nothing will be resolved there until June.


Source: Investment House

[winston]

Weekly Review

Bonds. 1.71% versus 1.70% 10 year U.S. Treasury.

That money is going into bonds as well. The 10 year on Friday was down a bit. It does not really matter. That was a record 10 year low.

Bonds have surged. There was one of those false breakdowns in March. Then it gapped and has rallied sharply to the upside. It does not look as if bonds will slow down.

Indeed, if we look at bonds across the world, focusing on Europe, we know that there is a serious issue. It looks as if something nefarious is brewing, and that something nefarious may be ready to occur.

The US bonds have been running higher, of course, but the Germany bund, its 10 year, is at a record low at 1.43%. Greek 10 year bonds are over 29%. Spain is at 6.27%, running back up toward 7%.

Credit default swap spreads are rising even higher and higher. Credit default swaps are basically insurance policies, and when spreads widen that means uncertainty is growing.

We know how markets of any kind hold great disdain for uncertainty.


Source: Investment House

[winston]

How to Invest in Bonds Without Being Slaughtered by Steve McDonald

As I said, this doomsday outcome is avoidable and there are ways to invest in bonds using a number of loss limiting factors that can allow you to earn above market rates – double digit in many cases – without being crushed by the herd when rates move up.

Rules of the Road

Rule No. 1 to Survive the Coming Debacle: Buy Short Maturities

Rule No. 2: Limit Your Position Sizes

Rule No. 3: Stagger Your Maturities

http://www.investmentu.com/2012/May/how ... bonds.html

[winston]

Weekly Review

Bonds. 1.74% versus 1.77% 10 year U.S. Treasury.

Bonds had some big auctions this week. They were up modestly to end the week. It has been a back and forth session with bonds every day.

Up and down, but it has formed a nice pennant after a solid run to the upside. This is a bullish consolidation of a nice move.

We have a breakout and a run higher. Now it is setting up for a new break to the upside.

Bond markets around the world, particularly the United States and Germany, are screaming of some problems.


Source: Investment House

[winston]

Weekly Review

Bonds. 1.47% versus 1.57% 10 year U.S. Treasury.

Even though the dollar may be worried about the Fed printing more money, bonds were not.

Bonds still rocketed higher, and the 10 year hit another record. Huge moves on the week. There is money in flight to U.S. treasuries.

This appears to be a secular move that, as Gary Kaminsky said, may likely push the 10 year yield down to 1%. It is getting close, and it has dropped a long way in a short period of time. The U.S. may have its troubles, but money is flying to bonds from overseas and here in the U.S.

As I said last night, this is not a sign of health as some were saying. It is a sign of major trouble, and it was forecasting more weak economic data in the U.S. Bonds are exploding to the upside.

I do not see anything stopping it right now. There will be pullbacks, but the move was set up with this rally, pennant, and now an explosive gap. Not a good sign for the U.S. or the rest of the world economically.

Source: Investment House

[winston]

Is the UK About to Engage in a Stealth Default?

http://libertyblitzkrieg.com/2012/06/04 ... h-default/