Tag Archives: Bond

20 Reasons Why a Wall Street Panic May Be Close

US Muni bond indices collapsing US State bankruptcy procedures being seriously discussed, indicating bankruptcies are imminent the 7 day SHIBOR (and repo rate) surging to new multi-year highs and has literally exploded from 2.5% to 7.3% in a few short … Continue reading

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Why Low P/E Comes With High Interest Rates

By Hui Zhong If we look back the history of the stock market and bond market, we may find a very interesting correlation between the P/E and bond yields.  That is when the stock market bottoms the bond yield also peaks.  In … Continue reading

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The Big Picture of U.S. 30 Years Treasure Bond

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The Bond Bubble Bursted?

This is on the background of QE2 that is anticipated to push down the yields and reduce the borrowing costs.  The market seems to say no to Bernanke.

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Europe’s financial crisis spreads to Italy and Belgium

10-year bond yields for Italy and Belgium — year preceding November 30, 2010 (Bloomberg)

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CDS Implied and S&P Rating Divergence

10-year bond yields for Spain, Portugal, Ireland and Greece — year preceding November 26, 2010 (Bloomberg)

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Market Is On The Edge of Crash.

Next 4-5 weeks will be very interesting.  First of all, the plunge of the CMI index from July to August suggests the economic activities will crash down in next 5 weeks. Second, the bond market looks topped already and the bond … Continue reading

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Bond Market Looks Topped Already

When dumb money have finished entering the bond market, it is the time for the bond bubble to be broken.  With the QE2 by the Fed announced last Wednesday, the trend of decline of the bond prices accelerates.  The bond market has topped.

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Fed Sets to Buy 850 Billions Bonds in Its QE2

Fed announced today it will buy long-term U.S. treasure up to 600 billions and reinvest 250 billions by the end of the first half of 2011 according the statement released by Fed.  The oil price makes 3-months high after the … Continue reading

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The Yield of 10-Year Treasure Looks Bottomed

TNX bottomed at early October, then breaks the 50 day moving average and finds it as support.  This looks like a long-term bottom, a breaking point of bond bubble.

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