General Bonds

The surrender on the yardstick 10-year Treasury note has been dropped to a low record on Friday as anxiety about European debt, a weak U.S. economy and anticipation of measurable reduction improved the appeal of the Treasuries. As the price of the Treasury ascended, the 10-year yield tripped to 1.89% from 1.99% on Thursday. The head of Treasury trading at MF Global, Richard Bryant said that a triple setback of fear had a bad effect on the market leading yields to hit new lows. Bryant said that the debt situation and weakness of the Europeans has brought talks in the marketplace about Greece’s financial condition and the situation could increase more in the weekend. In spite of the comments of Fed Chairman Ben Bernanke and Obama’s much-predictable address about the jobs on Thursday, the investors are not influenced that the economy is trying to recover itself. It was said by Bryant that the market was expecting for amplification about the new jobs...

Welcome to 2011, the year of the Long-Term Evolution (LTE), A.K.A., G4 wireless connectivity. Only Verizon Wireless is offering it as I write this, but only through USB Modems. Smartphones will be out later this year; so it’s here but just not available now to change your life.   The promised upgrade in broadband, whether we want it or can afford it, is a perfect metaphor for the upcoming collision between economic reality and political machinations. One of three things will happen as the 112th Congress is sworn in; a) it will continue business as usual, b) it will change spending in Washington DC, or c) our creditors will take away our charge card. America is unprepared for all three. Choice b would be not to raise the federal debt – much easier said than done. Choice a will debase the Dollar and cause inflation before the second leg of the 2008 Depression starts (Oh, and you thought we were pass that...

Bonds were crushed today while equity markets moved higher today in response to better than expected news on the employment front with the ADP December index showing a gain of 279,000 versus 92,000 previously and the December ISM at 57.1 versus 55 prior.   The FOMC meeting showed the Fed sticking to their QE2 plans while world food prices spiked to a record high and now stand at levels that triggered riots in the emerging world in 2008.   Interest continued their recent rise and the dolllar strengthened, causing an ongoing selloff in precious metals and commodities.   The new Congress began their work and the discussion is already turning to the Federal debt ceiling and how/when/how much to raise/not raise it.   Daily Moves for Major ETFs: Dow Jones Industrials: (NYSEArca: DIA) +0.34% Russell 2000: (NYSEArca: IWM)                  +1.17% NASDAQ 100: (NasdaqGM: QQQQ)               +0.86% S&P 500 Index: (NYSEArca: SPY)                +0.50% MSCI Emerging Markets:(NYSEArca: EEM) -0.25% MSCI China (NYSEArca: FXI)                            +0.08% Gold (NYSEArca: GLD)                                          -0.28% 7-10 Year Treasuries: (NYSEArca: IEF)        -1.08% 20+ Year Treasuries: (NYSEArca: TLT)         -2.20% VIX                                                                                 -2.07% U.S.  Dollar (NYSE:Arca: UUP                             +1.01%   The major indexes remain overvalued and...

By Kirsten Donovan LONDON, Nov 30 (Reuters) - Spanish and Italian government bond yields hit euro lifetime highs on Tuesday, hammered by concerns about the euro zone's debt crisis, after an 85 billion Irish rescue deal failed to stop the rot in peripheral bonds. With the market focused on which peripheral country may be next to seek help, Spanish and Italian bonds continued Monday's sell-off, which saw 10-year yields post their biggest daily rises in more than a decade. "It's very worrying because Spain is almost too big to be bailed out ... whereas Italy is too big to be bailed out," said Everett Brown, European bond strategist at IDEAglobal. "There's not much more that officials could do at the moment, so if spreads keep widening, it raises the small risk of the euro zone breaking down. After the past few years we can't rule anything out ... It's a bit ominous." Italian 10-year yields

Overview: As was the case yesterday, stocks, commodities, risk forex all retreating thus far today and generally down since Friday on a combination of serious bearish fundamentals that include: uncertainty about the coming Ireland bailout, soaring Portuguese and Spanish bond yields that threaten to force these nations to seek EU/IMF funds, which are insufficient to aid Spain. This rather obvious point had lead many EU officials to favor an expanded aid fund to cover Spain, calm markets, and stop a potential crisis before it really gets going and becomes even more expensive to fix. German officials, however, prefer to play politics while Europe burns, and reject the idea. After a coalition breakdown in Hamburg this past weekend, Germany faces at least 7 state elections in early 2011, making German leaders especially sensitive to their voters’ frustration at being billed for further aid to their neighbors. Still, they are unlikely to have a choice in the end and thus the German refusal to...

Likely Market Movers To Watch This Week   Speculation About A Bigger Bailout Fund To Cover Spain: Many EU officials want it in order to kill off speculative attack on to-big-to-bail Spain, but Germany is thus far resisting the idea and thus helping keep anxiety high about spreading contagion to Portugal and Spain. One Or More Wildcards EU sovereign debt/banking crisis: In addition to possible settling of an Ireland bailout deal and expanded bailout fund, watch for: Portuguese and Spanish bond auctions ECB press conference expected to announce a continuation of asset purchases, tossing aside any remaining hope EUR bulls had for an exit US banking/housing crisis: Housing data is expected to be poor, new revelations on the insider trading probe? News on ‘Black Friday’ US and EU retail spending as an initial gauge of the critical US holiday consumer spending season – a make or break season for US retailers, in which many generate 25%-50% of annual sales. Expectations are modest for the US, glowing for Germany....

BERLIN (Reuters) - German government sources denied on Saturday a magazine report that Berlin might agree to issuing joint euro zone bonds in response to the current debt crisis affecting some nations in the 16-member currency union. Focus magazine cited an unnamed official saying Berlin might drop its objections to an idea championed by Eurogroup President Jean-Claude Juncker, who believes it would help troubled euro zone countries like Greece, Ireland and Portugal. But two German government sources said Berlin was still firmly opposed to the idea. It worries that the proposal would imply taking responsibility for the debts of other, weaker economies in the euro zone.

LONDON, Nov 18 (Reuters) - Following is a selection of comments from analysts on important technical developments in the bond and interest rate markets. ** LEVELS (continuous contract basis) Bund 128.07 (-0.38) Euribor 98.930 (+0.005) Gilt 121.33 (-0.36) Short stg 99.230 (-0.010) T-bond 126-26/32 (-08/32) Eurodollar 99.685 (+0.003) ** FABIEN MANAC'H, SOCIETE GENERALE BUNDS: "After a short-lived intra-day recovery yesterday, the Bund headed south again. So the short-term bias remains to the downside. The Bund is likely to break below Tuesday's low of 127.98 and dip to the 127.12/37 support area -- June and July lows. It should then attempt to reverse upwards." ** RICHARD ADCOCK, UBS BUNDS: "Tuesday's low and rally point in Bunds at 127.98 is the first support focus today and the risk is that a break below here will be seen to trigger further downside. Trades under 127.98 will see an acceleration in the decline down to the 38 percent retracement of the year-to-date range at 127.26." SCHATZ: "For today, Schatz are bearish while they...

By Emelia Sithole-Matarise LONDON (Reuters) - Irish government bond yields fell on Friday, easing pressure on other peripheral euro zone issuers on reports Dublin was in talks to get European Union aid and that there would not be any debt restructuring tied to it. The improved tone in the euro zone's weakling sovereign issuers stemmed the flight to safe-haven German bonds, driving the Bund future FGBLc1 more than one percentage point down on the day to its lowest in almost two weeks. But Irish bonds remained under heavy pressure, with 10-year yields IE10YT=TWEB only back around Wednesday's levels near 8.5 percent as the European Union and Ireland's finance ministry denied news reports a bailout was being hammered out. German Chancellor Angela Merkel, speaking at the G20 summit in Seoul, said the European Union was ready to deal with all scenarios in the Irish financial crisis and, in an attempt to reassure investors, leaders said new rules concerning writedowns would only apply to future bond...

By Shinichi Saoshiro TOKYO, Nov 11 (Reuters) - Japanese government bonds slipped on Thursday, with a well-received five-year auction unable to stop the benchmark yield from rising to a seven-week high as resurgent Tokyo stocks kept debt buyers on the back foot. The new five-year JGBs attracted steady demand from domestic financial institutions looking for a place to park their surplus funds under the Bank of Japan's near zero rate policy, market players said. But as with the 10-year offering last week and the 40-year auction earlier this week, Thursday's 2.4 trillion yen ($29 billion) five-year sale failed to spark a market bounce. "A pattern is developing in which each auction attracts good demand but the market keeps declining regardless," said Akito Fukunaga, chief rates strategist at RBS Securities in Tokyo. "Expectations placed on the Federal Reserve's quantitative easing turned out to be excessive and some sellers are looking to unwind longs at each opportunity. This could continue until Treasuries bounce convincingly." The benchmark 10-year yield...