TOKYO, March 3- Japanese government bond prices sagged on Tuesday, weighed down by lukewarm demand at a 10- year debt sale and overnight retreat by U.S. The Bank of Japan's extensive debt purchases as part of its monetary easing drove the 10- year yield to a record low of 0.195 percent in January but has also sucked up liquidity and made the market volatile, sending...» Read More
There is another problem building, and some fear it could lead to a much more widespread crisis in financial assets.
Money market rates continued to decline to punishingly low levels in the latest week, pressured downward by a further increase in the monetary base, which is resulting from the Federal Reserve’s asset-purchase program.
Financial markets have quickly moved from worrying about things like Middle East oil supplies to whether the global economy is healthy enough to support demand for all sorts of assets.
"The fear factor here is going to be palpable. People who own munis tend to own them for the tax benefit and they tend to own most of their assets, if not all of their assets, in the muni asset class. So when they get to fall, they get nervous," Gundlach said.
Treasuries caught a bid in recent days as Mideast turmoil and rising crude pushed investors into the safety trade.
Perhaps the greatest mystery in the world of finance and economics is why Fed Chairman Ben Bernanke refuses to acknowledge that paper money creation by central banks produced the “global savings glut.”
Putting together comments made today by Fed Chairman Ben Bernanke and Pimco bond guru Bill Gross offers the following critical suggestion to Congress: It would be a really good idea to put a deficit plan together before the Fed finishes its quantitative easing program in June.
The S&P is now up 6.8 percent for the year, and analysts and traders keep watching for the pullback that just doesn't seem to come. Turmoil in the Middle East, recurring sovereign debt concerns in Europe and now the idea of inflation all hang over markets.
As investors fret about a default of Greece’s $300 billion debt bill, consider this: at $10.2 trillion, the Japanese bond market is the largest government debt market on the planet. And Hedge fund manager Kyle Bass, who made his first fortune betting against subprime mortgages, is now wagering that this market will collapse—soon.
Savvy investors are looking at the muni market and the state debt crisis a little differently. Iinstead of looking at the number as a whole, they break it down into its pieces and see both a far more manageable problem than is seen by those who gross up the problem and opportunities.
A spike in yields and a desire to diversify portfolios is prompting some unusual investors to jump into the municipal bond market, say traders and analysts.
It is important to recognize the idea that the U.S. bond market is in the latter stages of a 30-year journey during which a “duration tailwind” pushed down market interest rates and boosted returns.
Shorts rates in the U.S. and around the world have created a flow of funds into commercial real estate that's not necessarily natural, Barry Sternlicht, chairman and CEO of Starwood Capital Group, told CNBC on Thursday.
The negative press has created many buying opportunities. Roughly $25 billion has flowed out of mutual funds that manage municipal bonds in the last few months. Investors appear to be selling municipal bonds in an indiscriminate fashion.
China, the biggest buyer of U.S. Treasury securities, reduced its holdings in November after four months of gains.
Rates on fixed mortgages dipped for the second straight week as Treasury yields fell.
The European Central Bank increased its intervention in government bond markets last week, indicating that the euro’s monetary guardian remained wary of an escalation of the eurozone debt crisis, reports the Financial Times.
As the Federal Reserve debates whether to scale back, continue or expand its $600 billion effort to nurse the economic recovery, four men will have a newly prominent role in influencing the central bank’s path, the New York Times reports.
With investor sentiment bubbling at levels comparable to just before the market's historic highs in 2007, now may be the time to pull back some before the froth gets out of hand.
The Federal Reserve’s $600 billion stimulus program has done little to lower interest rates and or improve unemployment, though it has boosted stock and commodity prices, a CNBC survey says.