Medium term trend, stable; longer term, up.
Posted by Don on Apr 13, 2010
Rates went down today as the preponderance of the news is stabilizing: Greece sold (on it’s own strength — albeit with the now-presumed backing of the EU) a surprisingly strong bond auction — at about 4.55% — significantly down from the market rate of 7% several days ago. Domestically, the prevailing feeling is that our own rates in the range of 4% are higher than...
Read MoreEarly (late) post.
Posted by Don on Apr 12, 2010
This is just a quick post with some overnight news. I’m up very late working on another project, and have an obligation in the morning tomorrow; and may not get a chance to post. So, I’ve done a quick look at the news, and post this with what’s happening at this hour that may be a market mover for anyone who sees this in the morning. The EU has agreed to a $61 billion dollar...
Read MoreMostly sideways on little news
Posted by Don on Apr 9, 2010
There is little news moving the bond market today, as no major governmental reports are due out, and the ongoing news of Greece seeming to predominate. Expectations are growing (today) that the EU assistance will be forthcoming — perhaps in the 4%-4.5% range. This will work to suppress bond prices (raise interest rates) as it’s lower than some investors had expected. But the market...
Read MoreStable; for now.
Posted by Don on Apr 8, 2010
Yesterday’s Bond Auction was surprisingly strong. Investors bid 3.72 times the amount of 10-year notes offered, the highest since 1994. This is a number that indicates the “demand” for the auction, and normally averages 2.87. All this means that demand was stronger than expected (good news, with such a large sale of US Bonds), and that this demand worked to raise prices (lower...
Read MoreStable; long term trend still higher.
Posted by Don on Apr 7, 2010
There are two significant and competing elements in today’s rates, both working against each other. Which one ultimately predominates and drives rates up or down is yet to be seen. You decide. Here’s the facts: The economic issues surrounding Greece have deteriorated overnight. Traders are increasingly concerned that the rescue plan may unravel. This causes “flight to debt of...
Read MoreMostly sideways at this point. Long term trend higher.
Posted by Don on Apr 6, 2010
Yesterday’s increase was significant enough to see a little bit of a pullback overnight. Plus the news is favorable today, such that a significant increase today isn’t anticipated. Overnight, Greece requested to amend the EU agreement on its bailout, citing too severe a set of restrictions, causing social unrest. This caused unrest in the Euro market, and money flowed into US...
Read MoreBeware, the Government-only Students Loans
Posted by Don on Apr 5, 2010
This is not to debate the political wisdom or not, of rolling Student Loans into a Government-only control (as has just happened under the new Health Care bill). This is just a quick, little blog to discuss something that I’ve not heard mentioned on this issue, to date. And those who are contemplating such loans would be prudent to keep this in consideration: Formerly, any neighborhood...
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