The Future of Interest Rates

Posted by Jack Crooks - Dennis Gartman comment

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Bond Trend August 2010

A BOND MARKET  BUBBLE? WE THINK NOT:  There is much talk almost everywhere that the bond market’s a Bubble. We suspect 
instead that the trend remains rather clearly upward and that support along the bigger line drawn here shall indeed be formidable.

Bond Trend August 2010


“He who controls others may be powerful, but he who has mastered himself is mightier still” – Lao Tzu

Forex Trading – The word of the day is debt

Japan is doing a hefty amount of buying of US debt. China’s recent reduction, according to reported TIC data, in its US Treasury holdings has been getting most of the attention as it marks the second month in a row. But Japan’s buying in the most recent month has mostly counteracted China’s move. 

It’s common knowledge that Japanese companies (the current primary source of demand for Japan’s 14 straight weeks of overseas bond purchases) typically park money in Japanese Government Bonds. But in seeking returns combined with safety, Japan is soaking up record amounts of Treasuries, according to the weekly numbers on capital flows put out by Japan’s Ministry of Finance.

US Yield Curve vs Japan Yield Curve

… pages 2 – 3 HERE