Posts Tagged ‘2-year note’
November 21, 2011
****WARNING: TRADING IN HOLIDAY THINNED MARKETS DURING TURBULENT TIMES CAN BE DANGEROUS TO YOUR WEALTH****
Today’s 2-YEAR NOTE auction in the U.S. received a 4.07 bid to cover ratio, the highest in records dating back to 1992. The rate NOTE BUYERS received was a meager 28 basis points. (Yes, thank you sir, may I have another?) There are those on the FED who are concerned that inflation is a threat and feel that the FED is too easy to meet its stable price mandate. The question becomes: Which financial geniuses are purchasing a TAXABLE INSTRUMENT AT A LOWER RETURN THAN THE INFLATION RATE?
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Tags:2-year note, CPI, Deutsche Bank, Dollar/Yen, fear, Fed, Japan exports, leverage, Richard Dennis, Simon Johnson, Slower Fool Theory, yen appreciation
Posted in Debt Market, Europe, Japan | 8 Comments »
May 4, 2011
The market’s attention turns to the ECB and BOE rate decisions. Any rate change would be a surprise as the U.K.‘s data has been weak of late as the austerity budget is beginning to be a drag on the British economy. The policy makers in England are content to let rates stay on hold as it helps to weaken the POUND against the EURO. It will be more interesting to hear from the ECB through Trichet to see if the Europeans are content with the present inflation situation, especially as the EURO has made new highs for the last 18 months. The recent strength of the EURO is a problem for the debt-stressed countries and with the U.S. on hold for an “extended period” any move by the ECB would put more upward pressure on the EURO currency. Let’s see if Trichet surprises us by discussing the recent strength of the EURO. The post-meeting press conference will be waiting to hear if Trichet loses the vigilant language.
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Tags:2-year note, 2/10 spread, ADP, Alan Beattie, Bill Gross, BOE, bonds, Dollar, ECB, euro. Trichet, Gold, Mexican Central Bank, Montezuma's Revenge, notes, PIMCO, Pound, silver, U.K.
Posted in Commodities, Currency, ECB, Europe | 3 Comments »
May 1, 2011
Elections are tomorrow in Canada. The polls are tight as the surprise is coming from the gains in the polls for the New Democratic Party (NDP), a party led by Jack Layton and is further left than the Liberal party that moved to start the NO-CONFIDENCE VOTE, which forced the early election. It seems that the TORIES will hold their numbers but the desire by Prime Minister Harper to become an outright majority party will not be realized. The political situation in Canada can become very confused as the LIBERALS/NDP may be able to forge a government if the most current polls are accurate. The markets have paid little attention to the polls as the Canadian Dollar closed the week and month out almost on its recent highs–another statement about the U.S. DOLLAR.
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Tags:2-year note, 2/10 spread, Canada, China, CME, Fed Funds Rate, Gold, Greece, Harper, Hunt Brothers, Jack Layton, Loonie, NDP, silver, Spain, Tories, U.S. Dollar, unemployment
Posted in Canada, Commodities, Currency, Debt Market, Europe, Gold | 8 Comments »