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17. May 2012 by Jim Sutliff.
The yield on 10 year Treasury Inflation Protected Securities (TIPS) fell into negative territory for only the third time in history. A recent U.S. government sale of $13 billion in 10 year TIPS sold at a negative yield of 0.391%. The safety of US Treasuries and the possibility of another round of quantitative easing drew investors. Yields rose for ten year bonds from Spain and Italy. Ten year yields for Spain touched 6.288% in trading and Italian yields rose to slightly over 5.8%.
To read a related Wall Street Journal, please click here:
http://online.wsj.com/article/BT-CO-20120517-711941.html
James Sutliff
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7. May 2012 by Jim Sutliff.
Elections in France and Greece may impact the Euro in the near term. France elected Francois Hollande of the Socialist party by a slim margin over President Nicholas Sarkozy. Hollande is not expected to support austerity measures. Hollande is the first Socialist President elected in France in 17 years. Francois Mitterand was the last Socialist President and he served from 1981-1995.
To read a related Wall Street Journal article, please click here:
http://online.wsj.com/article/BT-CO-20120507-705469.html
Jim Sutliff
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26. April 2012 by Jim Sutliff.
Standard & Poor’s lowered the credit rating of Spain to BBB+ from A. The two notch downgrade is partially due to the risks associated with the government debt. In addition, Standard & Poor’s discusses concerns relating to budget projections and the banking sector. The ratings downgrade also mentions scenarios that could lower the ratings or improve the outlook.
To visit the Standard & Poor’s site, please click here:
http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245332673209
Jim Sutliff
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3. April 2012 by Jim Sutliff.
Federal Open Market Committee minutes indicated that a third round of quantitative easing may not happen in the near term. The Fed minutes sent Treasury prices lower and yields higher. Yields on the 10 year Treasury went to 2.28%.
To read a related Wall Street Journal article, please click here:
Jim Sutliff
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3. March 2012 by Jim Sutliff.
The U.S. Treasury may start to offer negative yield auctions. The safety and security of U.S. Treasuries have already led to them being traded at negative yields on secondary markets. According to Reuters, the one month Treasury bill traded on a secondary market at a negative yield in December. The Treasury Departments systems would have to be modified to handle the trading of Treasuries at a premium.
To read a related Fox Business article, please click here:
http://www.foxbusiness.com/investing/2012/02/01/treasury-may-let-investors-pay-to-hold-us-debt/
Jim Sutliff
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27. February 2012 by Jim Sutliff.
Germany voted to support a second Greek bailout of approximately $174 billion. The Finland parliament is expected to vote on the Greek bailout this week. Also, European leaders will discuss the Euro zone bailout fund at their next meeting in Brussels on March 1st and 2nd.
To read a related Bloomberg article, please click here:
Jim Sutliff
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21. February 2012 by Jim Sutliff.
Gold prices rose to over $1,755 an ounce after European Union finance ministers agreed to another Greek bailout. The second Greek bailout provided by the Euro zone is approximately $172 billion. In Tuesday trading, gold hit the highest mark since February 3rd. Silver also traded higher and rose to $34.13 an ounce.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2012/02/21/us-markets-precious-idUSTRE80T1QZ20120221
James Sutliff
Posted in Metals, Options & Futures, Trading, Investments, General, Bonds, Economic News, Banking | No Comments »
9. February 2012 by Jim Sutliff.
Greek leaders agreed to terms for a second bailout of approximately $172 billion dollars. The Greek parliament stills need to ratify the agreement as well as major reductions in spending. European Union finance ministers would than have to provide final approval for the deal.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2012/02/09/us-greece-idUSTRE8120HI20120209
James Sutliff
Posted in Investments, Euro, General, Economic News, Currency, Bonds | No Comments »
27. January 2012 by Jim Sutliff.
Fitch lowered the credit ratings for the sovereign debt of five Euro region nations. The five nations included Italy, Spain, Belgium, Cyprus, and Slovenia. The credit rating for Italy was cut to A- and the rating for Spain fell to A. Italy has the third largest European Union economy.
To read a related Bloomberg article, please click here:
James Sutliff
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14. January 2012 by Jim Sutliff.
Standard & Poor’s downgraded the sovereign debt of nine European nations on Friday. France and Austria lost their AAA ratings and were lowered to AA+. In addition, the sovereign debt was downgraded for Spain, Italy, and Portugal. Four European nations that still have a AAA rating are Germany. Finland, Luxembourg, and the Netherlands. Borrowing costs could rise for the nations that had their sovereign debt downgraded. U.S. Treasuries rose in trading on Friday and forced yields down to 1.87%.
To read a related Wall Street Journal article, please click here:
Jim Sutliff
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4. January 2012 by Jim Sutliff.
The Federal Reserve has announced that they will release their forecasts for the Federal funds rate. The move will increase transparency at the Federal Reserve at may help with financial planning for businesses and investors. Monetary policy expectations should be released at the next meeting on January 24th and 25th. The Fed funds rate is expected to remain low for the remainder of 2012.
To read a related Bloomberg article, please click here:
James Sutliff
Posted in Stocks, Interest Rates, Federal Reserve, Treasury, Regulatory, Investments, Bonds, Economic News, General, Banking | No Comments »
16. December 2011 by Jim Sutliff.
Fitch Ratings indicated that they may downgrade the sovereign debt of seven European nations. France is one of the European nations facing a downgrade from Fitch. The six other nations are Belgium, Cyprus, Ireland, Italy, Slovenia, and Spain.
To read a related Bloomberg article, please click here:
James Sutliff
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14. December 2011 by Jim Sutliff.
On Wednesday, Federal Reserve Chairman Ben Bernanke met with Republican Senators to discuss the European Union sovereign debt crisis. According to GOP Senators, Bernanke indicated that the European debt crisis could significantly impact the American economy. The Euro fell below $1.30 in afternoon trading.
To read a related CNN Money article, please click here:
http://money.cnn.com/2011/12/14/news/economy/bernanke_europe_senate_gop/index.htm
Jim Sutliff
Posted in Interest Rates, Democrat, Republican, Trading, Federal Reserve, Euro, Treasury, Regulatory, Political News, Currency, Bonds, Economic News, General, Investments, Infrastructure, Banking | No Comments »
12. December 2011 by Jim Sutliff.
The Euro fell on news that Moody’s is considering a downgrade of European Union sovereign debt. The inability to end the debt crisis is one factor in the Moody’s decision. In currency trading, the Euro fell to $1.3184 which is the lowest mark since October 4th. Also, Italian bonds declined in trading.
To read a related Bloomberg article, please click here:
James Sutliff
Posted in Stocks, Interest Rates, Trading, Euro, Regulatory, Investments, Bonds, Currency, Economic News, General, Banking | No Comments »
10. December 2011 by Jim Sutliff.
European leaders reached an agreement on centralized fiscal policy. The agreement is supported by all 17 euro zone countries as well as the 9 countries seeking to join the union. England did not approve the fiscal plan. Stock markets reacted positively with the Dow Jones rising 163.44 points.
To read a related Fox Business article, please click here:
http://www.foxbusiness.com/markets/2011/12/09/european-leaders-give-markets-what-wanted/
Jim Sutliff
Posted in Political News, Trading, Euro, Investments, General, Bonds, Currency, Economic News, Banking | No Comments »