Negative Treasury Yields on Inflation Protected Securities, a First (New York Times) It's a red letter date in economic history: TIPS (Treasury Inflation Protected Securities) sold at auction today at a yield of -0.55%. This is the first time ever treasury securities have sold at a negative yield. Investors are willing to price the inflation indexed bonds at yields of less than zero because they are seeking protection from future inflation in real dollars. Analysts attribute this to concerns over future rounds of quantitative easing.
Weak Dollar Rally Nearing an End?(CNBC.com)CNBC's Jeff Cox discusses how the weak dollar has lead to a rally in all asset classes — stocks, bond, commodities — and why the bulls cannot run on dollar devaluation indefinitely
Brits & Swiss Cut a Deal on Banking Secrecy, Tax Revenue (Financial Times)In exchange for a beefed up withholding tax on Brits, the Swiss will retain their fabled anonymity for account holders in the U.K., according to published accounts of a new deal between Bern and London. A similar deal is expected to be announced between the Swiss and Germans.
Fund manager Ray Dalio reports 38% return YTD: No data reported on yogic flight (BusinessInsider)Courtney Comstock at Clusterstock details the connection between eleven digit hedge funds and new age philosophy.
FDIC Chief Gets: Foreclosure Triage May Be Needed (Wall Street Journal) "'Ultimately foreclosure is a necessary piece of this,' Bair said at a housing finance seminar sponsored by the FDIC and Federal Reserve. She cautioned that foreclosure is an expensive process and said it should be a last resort, but it remains necessary to stabilize the market."
Mortgage Modifications Drop in September (New York Times)This as more delinquent homeowners fail than succeed to modify their loans.
Loan Mod Program Failing (MarketWatch)A watchdog report out Monday critical of federal program.