bonds,

Businesses warn investors they can’t pass on costs; “growth concerns” loom this fall. Fed rate cuts could harm stocks, accelerating shift to bonds and imploding the carry trade.

Of course Julian Emanuel (Sr Director of Derivatives) wants everyone to stay fully invested. He fails to explain derivatives speculation in small caps while mega caps sell off is always how the market finishes the economic cycle right before collapse.https://t.co/C0RiBmR3J6 — Financelot (@FinanceLancelot) July 31, 2024 I'm shocked people think rates will go down instead …

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Norinchukin Bank plans to liquidate $63 billion in US and European bonds.

Japan’s Norinchukin Bank indeed plans to liquidate $63 billion in US and European treasuries to mitigate unrealized losses. Here are the key points: Liquidation Plan: Norinchukin Bank, a major Japanese bank with $681.6 billion in total assets, intends to sell approximately 10 trillion yen (equivalent to $63 billion) worth of US and European sovereign bonds. The …

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What do bonds know?

What do bonds know? pic.twitter.com/hfPPz08i8s — Lawrence McDonald (@Convertbond) June 21, 2024 The US Consumer – How is the bottom 60% doing? pic.twitter.com/LS55ctBeZ5 — Lawrence McDonald (@Convertbond) June 21, 2024 Another indicator back to ‘COVID lows’ pic.twitter.com/iwlNAoUUDb — Don Johnson (@DonMiami3) June 21, 2024 Housing starts and building permits have dropped to the lowest since …

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Could be a domino: Japan Banking Giant Norinchukin To Liquidate $63 Billion In Treasuries & European Bonds

Last October, when the wounds from the March 2023 bank failures – which surpassed the global financial crisis in total assets and which sparked the latest Fed intervention, setting the market’s nadir over the past 16 months – were still fresh, we made a non-consensus prediction: we said that since the Fed has once again backstopped the US financial …

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French Government Bonds Face Trouble as Elections Loom

As France heads towards snap elections at the end of June, French government bonds could slide further, having already taken a major hit from the weekend’s European parliamentary elections, pushing their yields even higher, analysts said. https://www.wsj.com/world/europe/french-government-bonds-face-trouble-as-elections-loom-aef03ead?mod=RSSMSN French right-wing parties were mired by infighting Thursday as campaigning intensified for snap elections called by President Emmanuel …

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The Bank of Japan is facing enormous losses on its holdings of Japanese Government Bonds

via notayesmanseconomics The last few days have brought something rather significant in the financial economy of Japan. It was highlighted this morning by the Ministry of Finance issuing some ten-year Japanese Government Bonds at a yield of 1.05% on average. So Japan has issued a decent tranche of benchmark ten-year bonds (2.6 trillion Yen) at …

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China dumps $50B US bonds, buys $25B gold annually; reserves flip by 2026. Gold re-emerges in global finance.

China sold $50B of US bonds last quarter.Officially, they buy $25B of gold per year.At that rate, they’ll flip reserves by 2026.They will hold more gold than Treasuries. https://t.co/lZ8D253KoL — Balaji (@balajis) June 2, 2024 Chinese state media is explicit about their goal: reduce dependence on US debt and acquire gold instead[1]. The math on …

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Japan’s bond yields rise, pressuring USD/JPY and US bonds; Interest payments soar to 3.8% of GDP in Q1, highest since 1998

Rising government bond yields in Japan usually correlates with lower USD/JPY exchange rate. It should also put a selling pressure on long-term US government bonds as Japanese bonds become more attractive and Japan own $1.2 trillion US bonds. Source: Apollo pic.twitter.com/gpdwPLMowL — Global Markets Investor (@GlobalMktObserv) June 2, 2024 Spiking Interest Payments on the Ballooning …

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Why people were buying 10 year bonds „yielding“ negative 0.50% just few years ago?

Can someone please explain why people were buying 10 year bonds „yielding“ negative 0,50% just few years ago? pic.twitter.com/yJJjILUylb — Michael A. Arouet (@MichaelAArouet) May 30, 2024 Nominal vs. Real Rates: When you see a bond yield, such as the yield on a 10-year U.S. Treasury bond, that’s typically a “nominal” rate. It represents the …

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Can’t blame them: China sold a record amount of Treasury and US agency bonds to buy gold in the first quarter

Smart considering how much US #credit there is already, and how much more will need to be created to fund all those wars, politician slush funds, rising interest expenses, roll over of maturing debt, and never mind the great state of the Union, versus physical #gold.#Gold is… — Jaime E. Carrasco (@IJCarrasco) May 16, 2024 …

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Bonds about to teach the Fed a lesson in humility. Yields setting up for an EPIC week

Correct. Bond vigilantes notice consumer inflation expectations rising. Fed handcuffed pic.twitter.com/xSGblzdW59 — Jim Benson (@JimDBenson) May 10, 2024 Yields setting up for an EPIC week ✍️📖 CPI AND PPI , hot 🔥 numbers would unleash carnage across the board . Below depicts readiness . Vigilance required . ⚠️ pic.twitter.com/KINLcqCAEt — The Great Martis (@great_martis) May …

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CCC-rated bonds are decoupling from the rest of the market

CCC-rated bonds are decoupling from the rest of the market pic.twitter.com/aaVv40RaFm — Win Smart, CFA (@WinfieldSmart) May 3, 2024 This refers to a situation where bonds with CCC ratings, signifying very low credit quality and high risk of default, are exhibiting different behavior compared to other bonds in the market. In financial markets, bonds are …

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Treasury announces new inflation protected bonds paying 4.28 percent.

Series I bonds, an inflation-protected and nearly risk-free asset, will pay 4.28% through October 2024, the U.S. Department of the Treasury announced Tuesday. The latest I bond rate is down from the 5.27% yield offered since November. Short-term investors have more competitive options for cash. But the fixed rate could still appeal to long-term investors, …

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DAVID HAGGITH: All major banks rumbling, Fed tightening beyond all expectations, Magnificent-Seven stocks tumbling, fears of Volmageddon 2.0, junk bonds getting junkier, war blowing inflation upward.

BY DAVID HAGGITH Photo by Charlotte Harrison on Unsplash Today’s news is so flooded with stories that show the trends I’ve teen warning about that I can’t even begin to cover them all in the time I have to read through the news, organize it and then write an editorial. So, I’m going to go through them in …

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TBAC-O Road? Treasury Announces Big Cut In Borrowing (Despite Skyrocketing Deficits) But Shifting Towards More Expensive, Higher Duration Coupon Bonds

by confoundedinterest17 Constitution Avenue in Washington DC is actually becoming Tobacco Road. No, not the dysfunctional family of Georgia sharecroppers during the Great Depression, but the Treasury Borrowing Advisory Committee (TBAC). On Monday, after we got the first part of the Treasury’s Quarterly Refunding Announcement (QRA), in which the Treasury unexpectedly announced a big drop in its borrowing …

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Gloomy Outlook for Chinese Assets… Investors Wary of Yuan and Bonds Amidst Bearish Sentiment.

The atmosphere surrounding Chinese assets is getting gloomier, extending beyond the realm of battered stocks. Investors are now expressing skepticism not just about stocks but also anticipating underperformance in the yuan and government bonds. Ken Cheung, the chief Asian currency strategist at Mizuho Bank Ltd. in Hong Kong, reflects this sentiment, stating, “We expect the …

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Investors favor bonds over commodities, but historical disparity hints at potential commodity resurgence; Inflation drop echoes 1960s, warning of potential final wave.

Indeed, that's a key point. Additionally, the coming commodity super cycle is going to be driven by the supply crunch of essential commodities such as copper and silver. Contributing to their growing scarcity… pic.twitter.com/Kc06kclh6G — Phoenix Capital (@PhoenixCapitalH) December 23, 2023 Equities are expensive. Commodities are generationally cheap Do with this as you wish. pic.twitter.com/SpHmqL6eKk …

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Big Chill Coming – Stocks and bonds and gold have all been on a tear, but there is a cold wind a comin’

by DAVID HAGGITH I just made my first major economic prediction for 2024 in my latest “Deeper Dive,” available to my paying subscribers, and let me summarize that we’re headed for a “year of chaos.” The article gives the particulars that form near mathematical certainty to the cause, laying out why it will bring what it will bring. We’re …

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Stagnating Bonds and Market Zombiefication: The Lingering Effects of a Zero Interest Rate Environment in the US

by 21plankton Germany financial sector facing dark clouds, Bundesbank warns FRANKFURT, Nov 23 (Reuters) – Germany’s financial firms may be well capitalised now but face challenges ranging from rising interest expenditure and weak loan demand to unrealised losses, Bundesbank Vice President Claudia Buch said on Wednesday. Interest rates have risen at the fastest pace on …

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Fed Faces Staggering Losses: Trillions in Treasury and Mortgage Bonds Bought Over the Decade Now Valued at $6.4 Trillion, Sparking Concerns of Further Bank Bailouts

In an unprecedented development, the Federal Reserve’s urgent crisis escalates as its decade-long bond-buying spree, valued at $7.7 trillion, reveals a shocking loss, with unrealized losses on the balance sheet surpassing $1.3 trillion for the first time ever. The amortized cost now stands at 20.4% more than the mark-to-market price, presenting an alarming financial discrepancy. …

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Stocks Plunge, Bonds Bust Some More

by DAVID HAGGITH Photo by Maxim Hopman on Unsplash Stocks and bonds continued their race downhill today (bond prices down/yields up) with the S&P busting down and holding below 4200 for the first time since last spring, and the NASDAQ jolting down 2.4% in its worst day since February (meaning even worse than any of the days during …

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