<Click on graphic for larger image> Bloomberg.com – China’s Selling Tons of U.S. Debt. Americans Couldn’t Care Less. For all the dire warnings over China’s retreat from U.S. government debt, there’s one simple fact that is being overlooked: American demand is as robust as ever. Not only are domestic mutual funds buying record amounts of… Continue reading China Sells U.S. Debt
<Click on chart for larger image> The Wall Street Journal – China Economic Growth Falls Below 7% for First Time Since 2009 China’s once-world-beating economy sputtered further in the third quarter, decelerating to its slowest pace since the global financial crisis and adding to concerns about the world economic outlook. The 6.9% growth rate for… Continue reading Chinese GDP Growth Now Under 7%
<Click on graphic for larger image> The Wall Street Journal – Roger Lwenstein: Why Americans Don’t Trust the Fed Antipathy to the central bank is a uniquely American tradition. No federal agency, except the Internal Revenue Service, is held in lower regard than the Federal Reserve, according to public opinion surveys. The left accuses the… Continue reading The Fed Has Trust Issues
The Wall Street Journal – Debt Ceiling Standoff Hits Bond Market Concerns that the U.S. could run out of money next month rippled through the bond market Friday, marking a return to the worries of previous debt-ceiling standoffs. The yield on the U.S. Treasury bill maturing on Nov. 12 rose to 0.036% Friday, the highest… Continue reading Treasury Bills Finally Take Note Of Debt Ceiling Concerns
<Click on graphic for larger image> The Wall Street Journal – Debt, Growth Concerns Rain on Deficit Parade The U.S. budget deficit is lower than before the 2008 financial crisis. But the good news is tempered by concerns on two fronts, one about the nation’s debt load and the other about the economy. Deficit hawks… Continue reading Debt To GDP On The Rise
<Click on chart for larger image> The Financial Times – Hedge fund performance fees decline sharply The income hedge funds receive from performance fees has fallen drastically this year, dropping more in the first half of 2015 than in the previous seven years combined. The fear is the drop in performance fees, coupled with weak… Continue reading More Trouble For Hedge Funds
MoneyBeat (WSJ Blog) – Will Treasury Ever Go Negative? As the U.S. government has auctioned off a string of short-term debt at a yield of zero lately, one question is bubbling up in the bond world: Is time ripe for the Treasury to allow bill auctions sold at negative interest rates?…But many analysts are skeptical… Continue reading Auctioning Bills At Negative Rates?
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Comment Yesterday we hosted a conference call titled The Fed, Earnings, The Economy and Commodities Over The Next Several Months. The webcast, mp3 and handout are below. We discussed: * The Fed (we see no hike for several months, if at all) * Earnings (another disappointing quarter coming?) * The Economy (more of the same,… Continue reading The Fed, Earnings, The Economy and Commodities Over The Next Several Months
CNNmoney – Debt ceiling deadline is now 18 days away Treasury Secretary Jack Lew said Thursday he now estimates that “no later than” November 3, Treasury is likely to exhaust special accounting measures that are keeping the country’s debt below its legal limit. Earlier this month, he had said the alarm would start to go… Continue reading The Market Is Not Concerned About The Debt Ceiling
<Click on chart for larger image> The Financial Times – Investors lurch backwards on US rate rise expectations The US economy may be slowing, a top Federal Reserve policymaker conceded, as investors have ratcheted back bets on when the US central bank will finally begin to tighten monetary policy. William Dudley, president of the New… Continue reading More Fed Talk
<Click on graphic for larger image> The Wall Street Journal – Trading Hits Goldman Sachs Hardest Clients headed to sidelines as markets swooned, exposing firm’s vulnerability Wall Street traders took a thumping during the summer, and no firm was left with deeper bruises than Goldman Sachs Group Inc. Goldman delivered a disappointing earnings report that… Continue reading Struggling Banks