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OnlyMe

Bonds: U.s. Debt Sales Are Facing Bear Market

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30-year bonds make their re-appearance, first time since the whole market was skewed to create the lowest short term rates in generations.

Whats the betting that over their duration 30-year bondholders will be taken to the woodshed?

http://www.iht.com/articles/2006/01/16/business/bxbond.php

NEW YORK Treasury yields are expected to rise in the coming weeks as the U.S. government overwhelms investors with $100 billion of debt sale

.....

According to futures trading on interest rates, yields are too low. Such activity shows that traders expect the U.S. Federal Reserve to raise interest rates by a quarter of a percentage point at its next two meetings, Ake of Mizuho said. Economists surveyed by Bloomberg say policy makers will raise borrowing costs to 4.5 percent from 4.25 percent when they meet on Jan. 31.

"We are at a tipping point now, where people may decide yields should go higher and more supply may increase the chances of that," Christopher Mahony of J&W Seligman said.

According to futures trading on interest rates, yields are too low. Such activity shows that traders expect the U.S. Federal Reserve to raise interest rates by a quarter of a percentage point at its next two meetings, Ake of Mizuho said. Economists surveyed by Bloomberg say policy makers will raise borrowing costs to 4.5 percent from 4.25 percent when they meet on Jan. 31.

U.S. government sales in the next month include 20-year Treasury inflation-protected securities on Tuesday and two-year notes on Wednesday.

The government holds its quarterly securities sale during the week of Feb. 6 when it sells 3-year notes, 10-year bonds and, for the first time since 2001, 30-year bonds. The amount of those sales will be set Feb. 1.

Edited by OnlyMe

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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