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Archive for the Bonds Category

Gold Rises On Greek Bailout -

Gold prices rose to over $1,755 an ounce after European Union finance ministers agreed to another Greek bailout.  The second Greek bailout provided by the Euro zone is approximately $172 billion.  In Tuesday trading, gold hit the highest mark since February 3rd.  Silver also traded higher and rose to $34.13 an ounce.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/02/21/us-markets-precious-idUSTRE80T1QZ20120221

James Sutliff

Greece Agrees To Bailout -

Greek leaders agreed to terms for a second bailout of approximately $172 billion dollars.  The Greek parliament stills need to ratify the agreement as well as major reductions in spending.  European Union finance ministers would than have to provide final approval for the deal.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/02/09/us-greece-idUSTRE8120HI20120209

James Sutliff

Fitch Cuts Credit Ratings -

Fitch lowered the credit ratings for the sovereign debt of five Euro region nations.  The five nations included Italy, Spain, Belgium, Cyprus, and Slovenia.  The credit rating for Italy was cut to A- and the rating for Spain fell to A.  Italy has the third largest European Union economy.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-27/italy-spain-are-among-five-euro-zone-nations-downgraded-by-fitch-ratings.html

James 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

Euro Trades Lower -

 The Euro fell on news that Moody’s is considering a downgrade of European Union sovereign debt.  The inability to end the debt crisis is one factor in the Moody’s decision.  In currency trading, the Euro fell to $1.3184 which is the lowest mark since October 4th.  Also, Italian bonds declined in trading.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-11/euro-weakens-before-german-investor-confidence-data-italy-s-bill-auction.html

James Sutliff

Eurozone Leaders Reach Agreement -

European leaders reached an agreement on centralized fiscal policy.  The agreement is supported by all 17 euro zone countries as well as the 9 countries seeking to join the union.  England did not approve the fiscal plan.  Stock markets reacted positively with the Dow Jones rising 163.44 points.

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

http://www.foxbusiness.com/markets/2011/12/09/european-leaders-give-markets-what-wanted/

Jim Sutliff

Asia Markets Fall; Gold Rises -

Stock markets across Asia fell with Japan’s Nikkei dropping 1.6% and Korea’s Kospi Composite falling 1.9%.  New Zealand and Australian markets were also lower in trading.  European debt crisis concerns were the driving force in the markets.  The Euro fell to $1.3345 against the Dollar and gold rose $7.40 to $1,713.20 an ounce.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970203413304577087082679599936.html?mod=WSJ_hp_LEFTWhatsNewsCollection

James Sutliff

Data Sends Crude Oil Lower -

European and Chinese manufacturing numbers came in weak and that helped to send crude oil lower.  Crude oil settled at slightly higher than $100 dollars a barrel on Thursday.  This is the first time since February 2009 that Chinese manufacturing has contracted.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-01/oil-fluctuates-on-u-s-jobless-claims-rally-in-spanish-french-bonds.html

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

Euro Falls On Debt Yields -

Yields for European sovereign debt continue to drive the Euro lower in trading.  The Euro fell against most major currencies and settled at $1.3525.  In trading against the Yen, the Euro fell to 104 Yen and had the biggest weekly drop since late September.  Cross currency rates improved slightly for the Euro against the New Zealand Kiwi and the South African Rand.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-19/euro-loses-most-against-yen-since-september-as-debt-yields-surge-in-crisis.html#

Jim 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

Smaller Euro Zone -

The Euro zone debt crisis continues to spread and yields on Italian debt broke the 7% mark today.  As a result, the Dow Jones Industrial Average fell almost 400 points in trading on Wednesday.  Speculation of a smaller Euro zone with deeper integration has increased over the last week.  In a recent speech, French President Nicholas Sarkozy mentioned a two-speed Euro zone which would be smaller than the current European Union.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/09/us-eurozone-future-sarkozy-idUSTRE7A85VV20111109

James Sutliff