bonds

Bill Gross was on CNBC yesterday talking about the debt ceiling deal. His first thoughts were about jobs. "There are no jobs in terms of growth. There are no wages in terms of increase… This is a classic de-levering cycle.”

The Telegraph is reporting that the euro zone sovereign debt crisis has reached such a critical flash point that Italy has called an emergency meeting. In Spain, the Prime Minister has delayed his summer holidays to deal with the fallout.

Here’s a Bloomberg chart of the yield on 10-year German bonds since reunification. The overall trend is down, most precipitously since 2009.

Is the PBoC going to stop buying US treasuries? The debt ceiling debate and a potential default have brought this question back into the spotlight. The theoretical and the real world answer to concerns about China and US debt is the same:…

Almost everything that happened last week is irrelevant given what looks like a U.S. debt deal. What we’re watching is how the relief rally holds and whether the Friday’s poor GDP data was a game changer. Looking under the surface of the…

The signal we’re extracting from the weekly move of the Four Horsemen is that though concern and the lack of confidence in the U.S. over the debt ceiling issue has increased, other factors, such as the deflationary consequences of a large…

The Chinese will be pleased. Holders of other government liabilities, not so much. If it comes to this, expect it to be negative for economic growth.

A stalemate could mean selective default. However, my sense is that the bonds themselves will be paid first. Other government expenditures will not get paid and that means a hardship for those who expect the money, whether companies doing…

Treasuries are more expensive to use as collateral for the borrowing that banks do in the ordinary course of business.

No, but stocks and bonds are down. Global equity markets are down and safe havens like gold and the Swiss Franc are up. Stan Collender thinks the likelihood of a deal is less than many believe.