Sideways; but contemplate the red pill.
Posted by Don on Apr 14, 2010
With no major news, the market is trading relatively sideways. Several Fed members went on record, including Bernanke, and some traders were disappointed that he wasn’t more pointed discussion on the projection of interest rates — and the market responded with a slight bump in rates. Inflation concerns (currently) remained low, with consumer prices rising 0.1% in March — an...
Read MoreAn outstanding article!
Posted by Don on Apr 14, 2010
Wow. For anyone who wonders about the true state of the national (and global) economies, this article is outstanding! http://mises.org/daily/4218 It’s a bit long; and I had it open in my browser for a few days, reading a little bit here, and there. But most often these days, you can commonly read or hear something that’s popular, simply because it’s inflammatory or accusatory....
Read MoreMedium 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 More
