Sovereign debt yields have hit their lows.

cohodk

Just sayin'.

derryb

And the debts have hit new highs.

Treasury Secretary: US hits debt limit on March 16, needs to be raised ASAP

Got bonds?

StanTheManMusial

Yep, everything is just fine, ladies and gentlemen. There is nothing to see here, now please move along. ~The future is bright!~

jmski52

Pretty soon, the Treasury will be paying the Fed to buy their paper at no cost to the Fed. It's almost as if the private banking cartel will actually own the country. Whoops, did I say that?

cohodk

So the consensus (all 3 of you, LOL) thinks rising rates will be a bad thing?

Baley

Maybe strategy doesn't matter, and it all comes down to Luck?

Pokermandude

How can it be called a limit if it is always allowed to increase?

"The debt ceiling has been raised 74 times since March 1962"
http://en.wikipedia.org/wiki/History_of_United_States_debt_ceiling

derryb

it's a temporary limit.

wdrob

<< <i>So the consensus (all 3 of you, LOL) thinks rising rates will be a bad thing? >>



I am hoping the Fed does just that. Raise those rates based on fabricated economic indicators.

Smoke and mirrors.

Share buybacks, cheap money, an artificially buoyed market. And it all comes crashing down.

derryb

Rising interest rates is one of the few things that can save the long term economy. But it will come at a great short term cost. And we all know bankers and politicians only think in the short term. Higher rates normally result in lowered borrowing, but politically controlled debt is exempt from normal.

High rates have been proven to fight inflation. Lowering rates would probably have been a great tool for fighting deflation if the FED hadn't already emptied that bazooka.

Cheap money has fueled stock buybacks and stock buybacks have fueled stock prices. Regardless of what they say the FED will not allow rates to go higher at least for the rest of this year and likely for a long time. When and if the FED loses control of rates all economic hell will break lose.

jmski52

So the consensus (all 3 of you, LOL) thinks rising rates will be a bad thing?

I can't say that I think rates will be rising anytime soon.

Would it be a bad thing? Only for the people who actually want a job.

cohodk

Jmski, you are missing the relationship of rates and economies, and relativity.


For reference when this thread is brought back up...rates as of 3-11-15

France, 10-yr OAT: 0.50%
Germany, 10-yr Bund: 0.18%
Greece, 10-yr note:10.57%
Ireland, 10-yr note: 0.72%
Italy, 10-yr note: 1.17%
Portugal, 10-yr note: 1.68%
Spain, 10-yr Bono: 1.21%
U.K., 10-yr Gilt: 1.86%

US 10-yr: 2.14%



Read more: http://www.briefing.com/Platinum/InDepth/InPlayFull.htm#ixzz3U5rc5E8y

jmski52

Armstrong would be the one to observe that capital flows are heading to the US, while Europe is engaging in QE. Looks like the US can issue 10 yr bonds until hell freezes over. The problem happens first on the fringes, not in the core.

cohodk

<< <i>Armstrong would be the one to observe that capital flows are heading to the US, while Europe is engaging in QE. Looks like the US can issue 10 yr bonds until hell freezes over. The problem happens first on the fringes, not in the core. >>



Thats impossible!!! I've heard right here in this forum that countries all over the globe are shunning America and the dollar.

Your second sentence is spot on.

metalmeister

Pay no attention to the man behind the curtain.

jmski52

<< Armstrong would be the one to observe that capital flows are heading to the US, while Europe is engaging in QE. Looks like the US can issue 10 yr bonds until hell freezes over. The problem happens first on the fringes, not in the core. >>

That doesn't mean the core won't be drug into the wormhole. The debt numbers and the unfunded liabilities are pure math.

I've read that everything is interconnected. Not having intimate knowledge of every detail, and not having the analytical capabilities to distill it down into something actionable, I'm firmly in the camp of wanting something physical.

cohodk

I'm firmly in the camp of wanting something physical

As it should be in any diversified portfolio that is free of the grasp of manipulation and conspiracy theory, fear and greed, and contempt and disillusionment.

cohodk

<< <i>For reference when this thread is brought back up...rates as of 3-11-15

France, 10-yr OAT: 0.50%
Germany, 10-yr Bund: 0.18%
Greece, 10-yr note:10.57%
Ireland, 10-yr note: 0.72%
Italy, 10-yr note: 1.17%
Portugal, 10-yr note: 1.68%
Spain, 10-yr Bono: 1.21%
U.K., 10-yr Gilt: 1.86%

US 10-yr: 2.14%



Read more: http://www.briefing.com/Platinum/InDepth/InPlayFull.htm#ixzz3U5rc5E8y >>




5-1-15

France, 10-yr OAT: +3 bps to 0.60%
Germany, 10-yr Bund: +3 bps to 0.32%
Greece, 10-yr note: -25 bps to 10.98%
Italy, 10-yr BTP: -2 bps to 1.47%
Portugal, 10-yr note: -4 bps to 2.07%
Spain, 10-yr Bono: unch at 1.45%
U.K., 10-yr Gilt: -3 bps to 1.83%

US 10-year--2.11%

cohodk

A blog relative to this discussion. I have no affiliation with the author.

Remove the hyphen (-) in the word chart-watchers, copy and paste.. http://stockcharts.com/articles/chart-watchers/2015/05/are-bonds-about-to-take-a-major-dive.html