Wednesday, June 15, 2011

investment advisor : U.S. bonds

investment advisor : U.S. bonds
U. S. Treasury prices plummet at the end of the market on Wednesday (May 27). Push 10-year bond yield 3.71% at the highest level in six months from November last year on Tuesday with the return to normal was 3.51%. Bond prices move in opposite directions always returns.
         
U. S. Treasury is selling. When the news that the U.S. government is about to issue new bonds on Wednesday, another period of 5 years from 3.5 billion in bond deals, the government continued to spend a lot of economic recovery. On Tuesday, the U.S. government has sold bonds for two years to four billion dollars. And on Thursday it expects to have another bond in seven years has sold $ 2.6 billion. And the week I bonds to total 1.01 trillion dollars.
          
In general, foreign countries will be major players for the S. U. Treasury, but now has begun to concern about the reliability of S. U. Treasury. Government printing more dollars continue.
         
Week. Rating company S & P is sufficient to send the signal redistribution of the British government from "stable" to "negative," saying that there are some concerns about the national debt up to 100% of GDP, and investors are worried that this will happen. the U.S. government.
         
However, Moody's Investors Service, another rating company. Have recently confirmed the AAA rating with the U.S. government yesterday (May 27). With reason. Strong economic fundamentals of the United States. United States will recover without damage.
         
Analysts said. "There are risks to impress for the long-term debt securities of U.S. government contracts, while the economic recovery. Both the news is bad news on bond prices."
         
News monthly consumer confidence in May, which came in the last six years, and the stock market jumped more than 30% from its low pressure at the rate of return on bonds rises.
         
At the end of the market on Wednesday (May 27). 30-year bond yield increased from 4.49% to 4.6%, 2-year bond yield increased from 0.91% to 0.97% while the lending rates between banks in the United Kingdom, or Libor 3 months increased slightly from 0.66% to 0.67%.
         
Libor The London Interbank Offered Rate or the average interest rate of 16 banks in the United Kingdom. The idea of ​​lending to each other. Libor rate has been used in the calculation of credit around the world. With assets of approximately U.S. $ 350 billion. Ties to the interest rate of Libor.
         
The image shows the 10-year bond yields in the first round last year.

         
Moreover, the early days of economic crisis. Investors are selling shares. then proceeds to take refuge in bonds. The surge in bond prices. Press the 10-year bond yields at 2%.
         
The days when investors have more confidence. Therefore, the sale of securities outside. To invest in risky assets. To go back again, and 10-year U.S. bond interest is an important reference with the direct interest of every country in the world

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