Silver as an investment

Category Archives: yield

An Insane Bond Market In 4 Charts: “Italian Junk Bonds Yield Less Than US Treasurys”

In our “WTF Chart of the day” from last Friday, we showed something stunning: European junk bonds yields were the same, and in some cases lower, than comparable-maturity 10Y US Treasurys. In other words, the distortion unleashed by Mario Draghi’s CSPP, or corporate bond buying program unveiled last March, has made European junk bonds “safer” […]

Gold Erases Flash-Crash Losses As Dollar, Bond Yields Slide After Dismal ISM Data

When even the 'soft' survey data is disappointing – catching down to collapsing 'hard' data – it seems markets can't ignore reality any longer. While stocks are marginally lower following the collapse in ISM Services, Bond yields and the dollar are tumbling as gold lifts… The Dolar Index is testing yesterday's lows (and cycle lows)… […]

Bank of America: “Tick Tock”

The drums of doom from BofA’s Michael Hartnett (most notorious for his recent prediction of when “the Fed will crash the market“, and warning that “The Most Dangerous Moment For Markets Will Come In 3 Or 4 Months“) are beating louder, and in his latest Flow Show report titled “Tick Tock”, he doubles down on […]

3-Month Treasury-Bill Auction Prices At Highest Yield Since Lehman On Debt-Ceiling Concerns

It seems Morgan Stanely was right when they said "the debt ceiling worries us most," as today's 3-month T-Bill auction surprised the market with its highest yield since the fall of 2008, as investors continue to price concerns that the U.S. government will exhaust its borrowing authority around mid-October. As SMRA details: The 3-month bill […]

David Rosenberg: “This Is The Single Most Important Thing For The Market Over The Next Decade”

Several years ago, Gluskin Sheff’s superstar economist (previously at Merrill), David Rosenberg (in)famously flipped from bear to bull, predicting what amounts to a victory for the Fed: a jump in (wage) inflation, a burst in economic growth, and an overall selloff in that most deflation-dependent asset, the US Treasury. None of those happened, and while […]

“What If”: Citi Models A World Where The Fed Hikes All The Way To 3%

It is becoming increasingly apparent that the Fed, now data-independent, has just one mandate: keep hiking interest rates until markets break. That is the conclusion of Citi’s Jeremy Hale, who writes that the FOMC minutes pointed to a view that financial conditions had eased despite the previous Fed hikes because equities had rallied and corporate […]

Gundlach: Bond Wipeout Is Just Beginning

It was already a jittery day for fixed income investors, with a bond rout which started after today’s French auction was poorly received, unleashing a selling scramble and sending Bund yields above 0.50% for the first time since January 2016, and breaking out above a key support level, then crossing the ocean and slamming both […]

Treasury Yields Spike Amid A Burst In Early Volume

Following the previously noted ongoing rise in yields around the globe on the back of this week’s unexpected and coordinated central bank hawkish jawboning which sent 10Y Bunds as high as 0.43%, double where they were earlier in the week… … the fixed income sell-off continued in early NY orders with US yields leading the […]

Warning: the Oil Crash Is Just Days Away From Triggering a Debt Crisis

The Oil collapse is about to trigger a crisis in junk bonds. Oil has been going straight down for weeks now. As we write this, black gold is below $43 a barrel, down 16% from its levels a month ago. “So what?” you might ask, “Oil experiences similar drops all the time. Why is this […]

SocGen: The Fed Is Raising Rates Too Slowly To Contain Asset Bubbles

Yesterday, when looking at the divergence between the slowing US economy and the Fed’s insistence on hiking rates, Bank of America’s David Woo asked if there is a different motive behind the Fed’s tightening intentions, namely is the Fed trying to pop the market asset bubble: “Can it be the case that its hawkishness was […]