Newsclips
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November 17, 2010
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The Wall Street Journal – Bond Market Defies Fed Bucking the Federal Reserve’s efforts to push interest rates lower, investors are selling off U.S. government debt, driving rates in many cases to their highest levels in more than three months. The Fed’s $600 billion program to buy Treasury bonds began late last week and is… Continue reading Why Are Yields Rising In The Face Of QE2?
The Wall Street Journal – Fed’s Yellen Defends Bond-Purchase Plan Janet Yellen, the Federal Reserve’s new vice chairwoman, said in an interview that the central bank isn’t trying to drive down the dollar’s value or push inflation above 2%, defending the Fed against the strong backlash that followed its Nov. 3 decision to purchase $600… Continue reading Defending & Attacking QE2
<Click on chart for larger image> The Wall Street Journal – Build America Bonds Need Tearing Down Temporary government programs hatched during a crisis can take on a life of their own, even when markets have calmed. That is the danger now with Build America Bonds. Started in early 2009, the program offered state and… Continue reading Build America Bonds
<Click on chart for larger image> The Wall Street Journal – For Europe’s sake, take the money Ireland’s day of reckoning has arrived. When Brian Lenihan meets his fellow European Union finance ministers in Brussels Tuesday, he will find himself in the surreal position of being begged to accept a European Union bailout, despite the… Continue reading All Eyes On Ireland
Real Time Economics (WSJ Blog) – GOP’s Pence Calls for Fed to Drop Focus on Employment Rep. Mike Pence of Indiana, a top House Republican, said he plans to introduce legislation Tuesday to end the Federal Reserve’s dual mandate, which requires the central bank to balance both employment and inflation concerns in its monetary policy.… Continue reading Is The Federal Reserve’s Dual Mandate Under Attack?
Comment As we suggested last week, there is a belief creeping in the markets that all the QE2 criticism will prompt the Federal Reserve to end the program early. This could be hurting markets as the “printed money” many expected may not actually materialize. This is an interesting belief in that the Federal Reserve rarely… Continue reading More Federal Reserve Bashing Over QE2
<Click on table for larger image> Zero Hedge (blog) – Is QE2 A Stealthy $90 Billion Gifting Scheme To The Primary Dealers? We have previously discussed how due to the inability to know at what price (par or market) the Fed is buying back bonds from the Primary Dealers, there is a distinct possibility that… Continue reading Is POMO An Earnings Windfall For The Primary Dealers?
<Click on table for larger image> Zero Hedge (blog) – David Tepper Dumps 20% Of Financial Holdings During Quarter Of Infamous CNBC Speech Guess who, after on September 24 David Tepper almost screamed that he was “balls to the wall long” and EVERYTHING was about to go up on QE2, you were very likely buying… Continue reading Apparently QE2 Doesn’t Apply To Financials
The Wall Street Journal – Credit Fears, QE2, Elections Prompt Muni Selloff Investors sold off long-term municipal bonds in the past week, sending a shiver through a normally stable market. On Friday, yields on consulting firm Municipal Market Advisors’ index of AAA-rated 30-year municipals were up 15 basis points—or 0.15 percentage point—from the prior week.… Continue reading Trouble In Muni-Land
<Click on chart for larger image> The Financial Times – Low yields lure blue chips to US corporate bond market Companies from UPS to Time Warner Cable have rushed to lock in the low interest rates still available in the US bond markets, using the money to plug pension fund gaps, buy back shares or… Continue reading Corporate Bond Issuance