RSS feedbond yields
’Lower — and flatter — for longer
And the bond band played on. Wednesday’s instalment — the US yield curve flattening below 200 bps between the 2-year and 10-year:
That’s for the first time since April 2009, as Reuters notes.
Perhaps outdone,
Survivor’s gilt, again
This one’s dedicated to George.
We aren’t absolutely sure, but it looks like the 10-year gilt on Tuesday plunged to a 50-year low — well below March 2009 levels, anyway:
We blame Dr Martin Weale.
RBS go low, see 10-year bund yields at 1%
RBS rates strategist Andrew Roberts is only talking in quotes — and not the stock kind either.
His latest European Rates Weekly is chock-full of bond market soundbites, all of which would be music to a bond bull’s ears,
Bond switching in the eurozone
The 10 year German/Irish bond-yield spread appeared on Monday to be racing back towards the levels last seen in May — before the European Union’s €750bn bailout package for troubled sovereigns was announced.
The Big Pfffft and the Euro-peripherals
There’s a bluntness about this one that we kind of like.
Barclays Capital’s AAA Investor note looks at the problems posed by the rally in long-term bonds (sub specie deflationitatis) on Thursday:
These developments pose a problem to most yield-driven real money investors,
The bond-stock decoupling is quite the Conundrum, Citi says
Bond yields are falling, falling, falling . . . but global equity markets simply don’t seem to care:
Global stock prices have rallied 6 per cent over the past six weeks, while global bond yields have fallen a collective 25 basis points,
Corporate cash piles & bond yields
Here’s an interesting snippet from CFO magazine, which may — or may not — explain the recent plunge in top-quality bond yields:
Over the past year, treasurers and CFOs have increasingly pursued the corporate equivalent of putting their money under the mattress:
Credit Suisse’s Garthwaite does QEII
Credit Suisse equity strategist Andrew Garthwaite is on hand to answer all your questions about a possible second round of unconventional measures in the US — the possibility of which has provoked a fire-storm of speculation ahead of the Federal Open Market Committee meeting later this Tuesday.
Fed’s asset purchase aftermaths aren’t all-American
Or, more evidence that the Federal Reserve’s unconventional monetary policy affects everything.
In a new St Louis Fed working paper, Christopher J. Neely makes a case for the international effects of the Fed’s large-scale asset purchases (LSAPs).
European SPV, meet Russian playwright
Reflection time on Europe’s sovereign debt crisis: we now have a European Financial Stability Facility. So will we see it used?
Er… pass for now, says Barclays Capital’s Aziz Sunderji and team:
There is not enough clarity in government bond markets to be able to credibly answer this question.
The Treasury non-conundrum, or why yields are trading below 3.6%
SocGen economist Aneta Markowska affects bemusement at the benign bond yield environment in the US. As she put it in a recent note (any emphasis/links FT Alphaville’s):
Sovereign debt concerns have rocked many economies in recent months.
In Europa We Trust
Now here’s a bravely contrarian Goldman Sachs research headline:
The European Rescue: Stability and sanity restored!
Which comes from the bank’s chief European economist Erik Nielsen.
As European markets end their first week of life under the Great Rescue Package,
The Greek tragedy, recapped
By way of context and explanation for Thursday’s Greek carnage in the debt and derivatives markets — in which Greek-bund spreads and Greek credit default swaps spiked to fresh highs — FT Alphaville presents a round-up of its recent Greece posts:
‘No chance of Greece going bankrupt’
With markets being spooked left, right and centre due to Greece’s ongoing debt travails, it’s good to see the Greek government providing some reassuring commentary to soothe concerns.
As Reuters quoted a Greek government spokesman saying on Thursday (emphasis ours):
A spectre is mildly haunting Europe
…Because European bond yield spreads really were on tenterhooks on Tuesday, after a Fitch analyst commented on the continent’s shaky AAA sovereigns.
As Reuters flashed at the time:
RTRS-RPT-GREEK/GERMAN
When G7 bond yields tell you nothing
UBS draws attention on Monday to the fact that widening G7 sovereign CDS spreads are as yet not being mirrored by rising bond yields.
That’s not to say that CDS are being mis-priced. There just happen to be other extenuating circumstances keeping yields low,