Archive for the 'Fixed Income' Category
The First Sign Of Interest Rate Hikes
0 Comments Published December 3rd, 2009 in Trading, Fixed IncomeThe S&P 500 index has been struggling at the 1110 level for a few weeks. This shouldn’t be surprising to readers of this blog since we looked at several technical reasons why further gains were difficult as recently as late October and in November.
Stock prices have barely eked out 3% further gains since I […]
Treasury 3 Month Bill Yields Fall To Negative
2 Comments Published November 19th, 2009 in Fixed IncomeThe big new development today was the huge drop in short term Treasury bond yields. The benchmark 90 day T-Bill rate dropped to 0.005%. These are levels which we last saw just a few months ago when we were in the thick of the credit crisis:
The 30 day T-Bill rate 0.03% which is slightly higher […]
What If Retail Investors Are Smart To Ignore This Rally?
6 Comments Published November 12th, 2009 in Sentiment, Fixed IncomeAt the start of the week we contrasted the strange pessimism that has gripped the US retail investor to the levitation act of Wall Street. It is almost as if Wall Street threw a party and other than institutional investors, a few day traders and algo quant jocks jamming high frequency trades, no one else […]
Banks Hoard Cash, Support Government Bond Market
0 Comments Published October 27th, 2009 in Fixed IncomeThe US financial system was resuscitated by the largess of the taxpayer. Without any real quid pro quo, transparency nor discussion, they were made whole. Their losses made public while their profits were guaranteed to remain private (as the recent obscene bonuses attest).
So now that the US economy is still on the ropes, fighting […]
Bloomberg Financial Conditions Index: Back To Normal
2 Comments Published September 28th, 2009 in Fixed IncomeThe is an aggregate measure of the risks within the financial system. It incorporates yield spreads from money market, bond and equity markets. In one single number, it indicates the relative position of the current financial condition via the number of standard deviations from the average.
Similar to the TED spread, it peaked late last […]


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