The bond bubble still has room to grow
As long as central banks keep rates low, the bond market has room to keep growing.
As long as central banks keep rates low, the bond market has room to keep growing.
The United States lost its pristine AAA credit rating a year ago today, but you wouldn’t know it by looking at the Treasury market.
A small New York-based bank has filed a class action suit against 16 of the world’s largest banks, charging that it was hurt by their alleged manipulation of the Libor interest rate.
Caught up in the Libor scandal, the star investment banker and American CEO of the British bank was forced to resign. His departure represents the end of an era for big banks.
Escalating fears about Spain’s debt problems sent investors rushing to safe haven investments Monday, including governments bonds in the United States, Germany and the United Kingdom.
Treasury Secretary Timothy Geithner defended his 2008 response to the Libor-fixing scandal that continues to unfold, and stressed that more reforms and enforcement actions are on the way.
Foreign investors bought a total of $45.9 billion of U.S. Treasury bonds and notes in May, compared with net purchases of $38.7 billion in April. Overall, China, the U.S. government’s top creditor, remains the largest holder of U.S. Treasury securities.
Concerns about slowing economic growth led more investors to the safety of Treasury bonds. And rates may still have room to fall.
Banks implicated in the Libor-fixing scandal will likely take billions more in losses as a result of pending litigation and regulatory penalties, according to industry analysts at Morgan Stanley.
The scandal is another sign of banks doing what they want, making a lot of money and not really getting in all that much trouble (not yet, anyway).
Bond yields are twisting much like they did last fall following the Federal Reserve’s announcement Wednesday that it is extending its so-called Operation Twist program — a widely anticipated move.
Spain’s borrowing costs continued to rise Tuesday, with the yield on the 10-year bond hitting another record high above 7%.
As the political crisis in Greece slowly moves toward a resolution, Spain continues to lose credibility in the bond market.
Spain just can’t catch a break. The yield on the 10-year bond topped 7% early Thursday, just one day after Spain’s credit rating was slashed by Moodys.
Spanish bond yields rose 6.789% Tuesday as investors remain worried about the link between Spanish banks and the government.
Spain plans to auction up to 2 billion euros worth of bonds Thursday in what could be an important test of the government’s ability to raise money from investors.
Spain’s Treasury minister appealed to European leaders for financial support Tuesday, saying the country’s credit markets are seizing up.
Extreme fear gripped investors around the world Friday, sending them fleeing for the safety of U.S., German and U.K. bonds.
If you’re looking for a sign that the economy may be on the mend, look no further than the Treasury yield curve — a closely monitored harbinger of the economy.