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.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To 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 titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, 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 owner 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 favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…