U.S. Treasuries Are Offering a Lesson in Supply and Demand.

U.S. Treasuries Are Offering a Lesson in Supply and Demand.

Last week, the U.S. Treasury auctioned $258 billion in bonds. Treasury auctions are the way the United States government finances its debt. The Treasury sells short-, intermediate-, and long-term IOUs, known as bills, notes, and bonds. When investors and governments...
Once upon a time, five blind men discovered an elephant…

Once upon a time, five blind men discovered an elephant…

Once upon a time, five blind men discovered an elephant. Each man examined a different part of the elephant and formed a unique impression about the animal. One believed an elephant was like a pillar, while another decided an elephant was like a snake. In recent...
Stock Markets, Bonds & Commodities… Oh My

Stock Markets, Bonds & Commodities… Oh My

A Weekly Perspective on Markets As the “dog days” of summer drag on, trading continues to be relatively light. Oil prices fell at the beginning of last week amid rumors that Iraq may up its oil exports, prompting stocks to retreat. While stocks rallied...
From Abstract To Reality: The Potential Effects of Rising Rates

From Abstract To Reality: The Potential Effects of Rising Rates

  Potential Effects of Rising Rates When the economic data align, and the Federal Reserve pulls the trigger on tighter monetary policy, rising interest rates may affect everything from mortgage rates to bond yields to economic growth. Here are a few of the possible...
Three Economic Puzzles Are Resolving

Three Economic Puzzles Are Resolving

Greg Ip, Chief Economics Commentator at The Wall Street Journal, was blogging about business cycles. He wrote, “After a perplexing start to the year, the economy is starting to make sense…[Recently released data] has begun to help solve three puzzles that have hung...
How ‘Should’ Bonds Act?

How ‘Should’ Bonds Act?

If it looks like a bond, and it acts like a bond…oh…that’s the problem. Government bonds aren’t acting the way investors expect. Last week, 10-year U.S. Treasuries – which, typically, are thought to be safe and stable investments – suffered the biggest one-week sell...