Archive for October, 2013

Monday Morning Musings

Monday, October 28th, 2013

Good morning. Bond markets were quiescent over night and the US Treasury marketing is manifesting very little price change. Dealers report mixed client flows in the overnight session. Asian clients sold 2 year through 5 year paper while real money was a better buyer of 10 year paper. In the ...

Own the Wheelbarrow Concession

Sunday, October 27th, 2013

The New York Times is carrying a story today on the benefits of inflation. The story reports on concerns at the Federal Reserve and academia that too low inflation for too long will transform America into an updated version of Japan with an economy mired in a low growth environment ...

ObamaCare Deferred ?

Wednesday, October 23rd, 2013

CNBC reports that the Obama Administration will delay implementation of the individual mandate by as much as six weeks. http://www.cnbc.com/id/101128776?__source=ft&par=ft

America Critiqued

Friday, October 18th, 2013

The Organization for Economic Cooperation and Developed expressed disdain for the deal which ended the government shutdown and avoided default.That organization has one extremely broad mission as it's website says its mission is to "is to promote policies that will improve the economic and social well-being of people around the ...

Liquidity

Friday, October 18th, 2013

This is an interesting link to the blog of the Federal Reserve Bank Of New York, Liberty Street Economics, which discusses the liquidity and balance sheet constraints during the May/July sell off. (With a hat tip to a fully paid up subscriber who pointed the way in a comment on ...

And the Beat Goes On

Friday, October 18th, 2013

The march to lower yields continues and the 10 year note has breached resistance at 2.55. That is the lowest yield on the issue since late June and the charts suggest a run to the 2.47 percent level. I am not a technician and do not pretend to be but ...

Hilsenrath Story: Not alot of There There

Thursday, October 17th, 2013

The WSJ is carrying a story by Hilsenrath which states the obvious case that the FOMC is unlikely to taper at its upcoming meeting. The story recounts forecast changes as many economists have reduced estimates of Q4 GDP. He notes also that there is a data dearth and that data ...

ObamaCare Roll Out

Thursday, October 17th, 2013

I recently found this blog authored by Bob Laszewski who in the interest of full disclosure operates a consulting firm whose principal clients are insurance companies. He previously worked for an insurance company himself. So he would seem to have a bias in favor of those who employ him.However, ...

Treasury Market: “En Fuego”

Thursday, October 17th, 2013

The Treasury market is "en fuego" today as the drama which played out in Washington dissolved into a quick denouement. That resolution has brought buyers to the Treasury market and the principal beneficiary is the belly of the Treasury curve. Yields on 5s,7s and 10s and 30s are 5 ...

Pimco’s Gross: Dont be Wrong,get Long

Thursday, October 17th, 2013

PIMCO ‏@PIMCO 1m Gross: DÉJÀ VU in Feb? Argues for NO quick taper and steady yields. Be fully invested in bonds and stocks.