Info

You are currently browsing the archives for the Treasury category.

May 2012
M T W T F S S
« Apr    
 123456
78910111213
14151617181920
21222324252627
28293031  

Archive for the Treasury Category

Yield Falls On Ten Year TIPS -

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

Treasury Prices Fall -

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:

http://online.wsj.com/article/SB10001424052702303816504577321452332344214.html?mod=WSJ_markets_liveupdate

Jim Sutliff

Treasuries Rise -

The yield on 10 year Treasures fell 7 basis points in afternoon trading on Tuesday.  The demand for Treasuries increased after there were declines in homes prices and consumer confidence.  There was also higher demand for the sale of $35 billion of 2 year securities.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-03-27/treasuries-rise-as-u-s-sells-35-billion-of-two-year-notes.html

James Sutliff

Natural Gas Inventories Build -

Natural gas inventories rose 11 billion cubic feet to 2.380 trillion cubic feet.  The increase in natural gas inventories was the first of the year and was driven by warmer than normal winter weather.  The rise in inventories sent natural gas prices lower at most major markets.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/03/22/markets-natgas-spot-idUSL1E8EM87W20120322

Jim Sutliff

Gold Continues Decline -

Gold continued to slide and fell to the lowest level since January 25th.  Traders weighed Federal Reserve statements on the economy and gold fell almost 2 percent.  Gold traded near $1,670 an ounce and continued to decline in electronic trading.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-03-13/gold-advances-with-equities-before-federal-reserve-meeting-greek-bailout.html

James Sutliff

Negative Yield Treasury Auctions -

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

Nine European Nations Downgraded -

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:

http://online.wsj.com/article/SB10001424052970204542404577158561838264378.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

Federal Reserve To Release Forecasts -

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:

http://www.bloomberg.com/news/2012-01-03/fed-officials-will-make-public-own-forecasts-for-key-rate-at-next-meeting.html

James Sutliff

Fitch May Downgrade France -

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:

http://www.bloomberg.com/news/2011-12-16/euro-advances-as-juncker-signals-eu-to-meet-imf-loan-deadline-yen-falls.html

James Sutliff

Bernanke Meets With Republican Senators -

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

Federal Reserve QE3 -

The Federal Reserve may provide another round of quantitative easing.  The breakdown of the budget negotiations between Republicans and Democrats are one factor that could lead to QE3.  Quantitative easing may lower long term interest rates and help with the recovery of the housing market.

To read a related Fox Business article, please click here:

http://www.foxbusiness.com/politics/2011/11/23/washington-gridlock-could-push-fed-to-act-on-economy-with-qe3/

James Sutliff

Fed Economists: Europe Could Trigger Recession -

A paper released by the Federal Reserve Bank of San Francisco indicates that the crisis in Europe could trigger a 2012 recession in America.  According to the paper, the chances of a recession in the first six months of 2012 have increased to 50%.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-14/fed-economists-say-odds-of-2012-u-s-recession-exceed-50-on-europe-crisis.html

Jim Sutliff

Economic News Sends Gold Higher -

Gold broke the $1,760 an ounce mark in trading this week.  The precious metal rose on the possibility of slower domestic economic growth and another round of monetary stimulus.  Recently, Federal Reserve Chairman Ben Bernanke indicated that additional monetary stimulus may be in the works to lower unemployment.  The lingering European debt crisis is also increasing demand for gold.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-04/gold-traders-more-bullish-as-debt-crisis-u-s-economy-spur-bets-on-gains.html

James Sutliff

Money Market Fund Regulations -

In a recent speech, former Federal Reserve Chairman Paul Volcker discussed regulatory control of money market funds  and the role of the government in the mortgage market.  Capital requirements and deposit insurance protection are two of the measures mentioned in the speech.

To read a related reuters article, please click here:

http://www.reuters.com/article/2011/10/23/volcker-regulations-idUSN1E79M03Q20111023

Jim Sutliff

IMF Plan Opposed -

The United States opposed a plan to almost double the size of the International Monetary Fund.  Currently, the fund has $380 billion in resources.  Shareholders opposed to the plan included Japan, China, Germany, Canada, and Australia.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/10/14/us-g-idUSTRE79C74G20111014

Jim Sutliff