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...
Are Higher Interest Rates Ahead?

Are Higher Interest Rates Ahead?

Things you may want to know… Last Friday, Financial Times (FT) published, ‘Five markets charts that matter for investors.’ Among the issues addressed in the charts were: The bond market bear watch. The yield on 10-year German Bunds (Germany’s government bonds) reached...
Inflation and Higher Interest Rates

Inflation and Higher Interest Rates

We are flirting with higher interest rates. Last week, yields on 10-year Treasury bonds rose to a 17-month high of 2.44 percent, reported The Wall Street Journal, before retreating to finish the week at about 2.4 percent. As we’ve mentioned previously, some experts...
The FED Effects Sentiment

The FED Effects Sentiment

Everyone makes mistakes. Some people learn from them. In GMO’s March 2016 white paper, James Montier and Philip Pilkington continued to explore the Federal Reserve’s influence – The FED Effects – on the stock market. It was a process they’d begun in 2015...
Negative Interest Rates

Negative Interest Rates

How low can rates go? The Bank of Japan (BOJ) dove into the negative interest rate rabbit hole last week when it dropped its benchmark interest rate to minus 0.1 percent. If you’ve been following Japan’s story, then you know the country has been struggling...
When Will The Fed Raise Rates?

When Will The Fed Raise Rates?

When Will The Fed Raise Rates? So, when exactly is the Federal Reserve going to increase the rate for overnight borrowing that they have held at the zero bound for 5 years (and counting)? It’s a question that has plagued bond investors throughout the first quarter of...