Who's Buying Corporate Bonds, And Why Did The Household Sector, Contrary To Expectations, End Up Dumping $130 Billion In Bonds In Q3?

 

Weekly Perma-Rosiness From Erik Nielsen

In the News

Posted: Dec 12 2010     By: Jim Sinclair      Post Edited: December 12, 2010 at 4:38 pm
Filed under: In The News

Jim Sinclair’s Commentary
What has become of Western Financial Society that it needs to be run by secret cabals?
What has become of the people that this can be discussed in the light of day and nobody really cares.

A Secretive Banking Elite Rules Trading in Derivatives
By LOUISE STORY
Published: December 11, 2010
On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.
The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.
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Dear Jim,
Payday is arriving soon enough.
CIGA BJS

Global bond rout deepens on US fiscal worries
Agreement in Washington on a fresh fiscal package has set off dramatic rise in yields of US Treasuries and bonds across the world, threatening to short-circuit any benefits of stimulus. The bond rout raises concerns that the US authorities may be losing control over events
By Ambrose Evans-Pritchard 8:03PM GMT 08 Dec 2010
The yield on 10-year Treasuries – the benchmark price of money worldwide and the key driver of US mortgages rates – has rocketed to 3.3pc, up 35 basis points since President Barack Obama agreed on Monday to compromise with Senate Republicans on tax cuts.
The Treasury sell-off has ricocheted through the global system, triggering bond sell-offs in Asia, Europe and Latin America. Japan’s finance ministry braced as borrowing costs on seven-year debt jumped by a sixth in one trading session, while German Bunds punched through 3pc.
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Jim,
The turn in bonds will be a process.  This is hardly a screaming buy signal, but it certainly points toward protecting some profits soon.
CIGA Eric

Jim Sinclair’s Commentary
This is the last and extremely important Pillar for the price of gold at $1650 and above.
That means hang on, here we go, very soon.

Market alarm as US fails to control biggest debt in history
Sunday 12 December 2010
Liam Halligan
US Treasuries last week suffered their biggest two-day sell-off since the collapse of Lehman Brothers in September 2008. The borrowing costs of the government of the world’s largest economy have now risen by a quarter over the past four weeks.
Such a sharp rise in US benchmark market interest rates matters a lot – and it matters way beyond America. The US government is now servicing $13.8 trillion (£8.7 trilion) in declared liabilities – making it, by a long way, the world’s largest debtor. Around $414bn of US taxpayers’ money went on sovereign interest payments last year – around 4.5 times the budget of America’s Department of Education.
Debt service costs have reached such astronomical levels even though, over the past year and more, yields have been kept historically and artificially low by “quantitative easing (QE)” – in other words, Federal Reserve Chairman Ben Bernanke’s virtual printing press. Now borrowing costs are 28pc higher than a month ago, with the 10-year Treasury yield reaching 3.33pc last week, an already eye-watering debt service burden can only go up.
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