This tutorial provides information to the investor about Fixed Income. Also known as a Government Security, treasuries are a debt obligation of a local national government. Because they are backed by the credit and taxing power of a country they are regarded as having little or no risk of default....
Market Folly submits: Essentially, U.S. Treasuries are setting up to be a great short opportunity. Last week, I laid out a basic thesis for shorting treasuries. We may be early in this call, but present and future actions are sending us signals we simply cannot ignore. The presently increasing and...
SEOUL AFP — South Korea's pension fund will no longer buy low-yield US Treasuries because it wants to diversity its portfolio and boost returns, an official said Thursday. The world's fifth largest pension fund will consider buying European government debt or other higher-yielding assets, a manager at the National...
Investors are getting more confident. Since late July, the All-Share has risen 11 per cent, and the sentiment-driven Nasdaq index has risen even more. But investors have also gotten more depressed. US Treasuries, gold and the Swiss franc have also risen, suggesting that investors are piling...
Eddy Elfenbein submits: One aspect of this market that I find fascinating is the dramatic yield spreads between short-term Treasury yields [^IRX] and just about everything else. Short-term Treasuries have one major benefit over all other securities and that is their safety. No matter what happens, an investor can...
Jan 01, 2003 (The Australian Financial Review - ABIX via COMTEX) For the past three years, US treasuries have outperformed stocks, but this is unlikely to continue in 2003. In fact, Paul O'Brien at Morgan Stanley Investment Management says that it is likely that returns...
Michael Shedlock submits: Here is an interesting theory stipulating that foreign central banks are behind the rally in treasuries and that in turn is causing a rally in the dollar. Please consider Foreign Central Banks Behind Rally In US Treasuries. The huge amount of US Treasury purchases which has...
U.S. Treasuries may fall on speculation Federal Reserve Chairman Alan Greenspan will suggest in his testimony to Congress this week that the economy is growing fast enough to justify raising interest rates. Greenspan will likely use his semi-annual monetary policy report to end any lingering notions that the...
Jun 25, 2007 (The Australian Financial Review - ABIX via COMTEX) -- The Bank for International Settlements has warned that the US dollar could weaken if overseas demand for treasuries slumps. Foreign purchases of treasuries have helped to bolster the currency in recent years, while the...
U.S. Treasuries are poised to fall for a sixth straight week, the longest slump this year, on concern a strengthening economy will prompt the Federal Reserve to extend interest-rate increases into 2006. Goldman, Sachs & Co. Chief U.S. Economist William Dudley, whose 4.5 percent estimate for the federal...
Bond markets are not yet signaling that we are out of the woods in terms of the credit crisis and the broader economic recession. While there have been signs of improvement in the U.S. stock market since mid-July, action in the bond market has been characterized by increasing credit spreads...
Government bond fund managers navigate bear market As is the case for realtors, the three most important rules for government bond portfolio managers are: structure, structure and structure. That was especially true in 1999, when bonds suffered one of the worst bear markets since 1994--the year when the...
BEIJING, AFP ? China will not retaliate in a developing trade spat with the United States by dumping US Treasuries, state media reported, citing the agency in charge of the country's ballooning forex reserves. "The nature of our agency is to manage the national forex assets well," an unnamed...
Count on fairly steady interest rates over the next few months... Both long and short term. Yields on 30-year Treasuries, near 5[fraction three-quarters]%, just below current levels. 30-year fixed-rate mortgages, a tad above 7%. 3-month Treasuries, near 5%. One-year CDs, 5%. Prime, staying at...
Market Folly submits: Gregor Macdonald has a great post on his blog, called "Debt-ology," which details an issue I've been mulling over myself: the flooding of the market with supply of treasuries. I put this up as food for thought, as well as providing a possible way to play this impending...
TED DAVID, CNBC ANCHOR: Treasury bonds are rallying today, proving the naysayers wrong once gain. Consuelo Mack has more in today`s "Strategy Session" -- Consuelo. CONSUELO MACK, CNBC CORRESPONDENT: Thank you, Ted. Well, if you had been listening to today`s "Strategy Session"...
Mike Steinhardt submits: Most people say “flight to safety.” I just don’t think Treasuries are the definition of “safety.” Some people say “flight to quality.” I just don’t think Treasuries are the definition of “quality” when they represent the financial condition of this country with its deteriorating tax base,...
The main highlight of this article is bond index funds. The first bond index fund was in the early conceptual stages in 1985. Some of its advantages include: consistent performance, Index funds enjoy lower operating expenses, tough to beat the market in bonds, diversification. However, it suffers from severe limitations....
NEW YORK -- Wal-Mart Stores Inc. is selling $3 billion of global notes in two parts, a spokesman for co-lead manager Lehman Brothers said. To have been completed at the end of July, the Bentonville, Ark.-based retailer's sale includes $1.5 billion of two-year notes yielding about 0.53 percentage points more...