Skip to main content

Selling heap load US bonds

During yesterday's MacroTwits discussion on Stocktwits, Gregor Macdonald wondered aloud about the upcoming flood of US Treasury bond issuance, set for $235 billion in govt. bills and notes this week.

More on that from MarketWatch:

"Treasury prices declined Monday, pushing yields up for the third session in four, after the government received record-high interest from investors for its first longer-term debt sale of the week.

Bonds remained in the red as traders eyed the rest of a record $235 billion in government bills and notes up for sale this week...

...The government will sell $42 billion in two-year notes on Tuesday, followed by $39 billion in five-year notes on Wednesday and $28 billion in seven-year notes on Thursday. The amount of 2-year, 5-year and 7-year notes will all be the largest-ever auctions on record.

Tuesday will also bring $27 billion in 52-week bills and $30 billion in 4-week bills ."

You might have also noticed a related clutch of articles on the Seeking Alpha home page today under the heading, "The Great Bond Sale". We'll highlight some of those stories in our related posts section below.

In the meantime, here's one more related piece from Bloomberg that we tweeted last night. China has come to Washington for talks with the US and it seems they are kind of curious about the strength of the US dollar and "the stability of US policy", especially since they are such large holders of our national debt.

Of course, the Chinese may have worries of their own to face as Edward Chancellor at GMO warns that China's economy seems "dangerously unbalanced and very likely to come unhinged in the next few quarters", but that's another story altogether.

Keep an eye on news of the China-US talks for more economic developments, and see our related posts section below for more on the US govt. bond sales.

Related articles and posts:

1. Govt. to sell $205 billion in bonds this week - Seeking Alpha.

2. Bond expert: Monday wrap - Seeking Alpha.

3. Bonds: dropping real yields indicate inflation - Seeking Alpha.

Labels:

Popular posts from this blog

Lessons from Hedge Fund Market Wizards: Scott Ramsey

Today we continue our series, "Lessons from Hedge Fund Market Wizards" , with a look at Jack Schwager's interview with Scott Ramsey of Denali Asset Management.  Ramsey, a futures trader and CTA who works on the island of St. Croix, spoke to Schwager about his first foray into the markets, his evolution as a trader, and the process he stands by to protect and grow his clients' money. 1) . Ramsey started trading in college. He was roped into the OTC metals market via a broker's ad in the Wall St. Journal. The broker charged customers a flat fee to buy and sell as much as they wanted in a particular market for six month. At the time, Scott was a novice and didn't know about futures, so he traded metals in this fashion through the inflationary run-up of the late 1970s. 2) . Scott had to rethink his trading strategy after he bought silver at $50 an oz., only to watch it collapse to $26 following a long string of limit-down days. He sold as soon as the market...
Read more

How to "Pull the Trigger" on Your Trading Ideas

In our last post, I quoted hedge fund manager, Jim Leitner on the importance of following up on your investment ideas.  Today I'd like to follow up and share some thoughts on how you can learn to consistently "pull the trigger" on your best trading setups and investing ideas. In order to help you do that, we'll take from the best and offer up key insights from interviews with top traders and trading psychologists like Alan Farley, Brett Steenbarger, and Doug Hirschhorn .  Now before we get to their key insights on overcoming trading anxiety and pulling the trigger on your trading ideas, let's remember what Jim Leitner said in his interview: "Learn to love to listen to people and when you hear something interesting, follow up on it. Don't just think, "Well that's an interesting idea" only to find out a year later that the company you could've bought shares in is now up 500-fold. You never want to say woulda, coulda, shoulda...
Read more

Moneyball: How the Red Sox Win Championships

Welcome, readers . T o get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter .   The Boston Red Sox won their fourth World Series title of t he 21st century this we ek. Having won their first Se ries in 86 years back in 200 4, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it? Quick background: in late 2002, team own er and hedge fund manager, John W. Henry (with his partners ) bought the Boston Red Sox and its historic Fenway Park for a reported sum of $ 695 million. Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship. This brings us to one of my fav orite scenes from the 2011 film , Moneyball , in which John W. Henry (played by Ar liss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pi...
Read more