America s Bond Market Blues

Bond market vigilantes already have taken aim at Greece, Spain, Portugal, the United Kingdom, Ireland, and Iceland, pushing government bond yields higher.

How Scary Is the Bond Market?

Creating a euro zone government bond market would bring immediate benefits, in addition to correcting a structural deficiency.

Hence, the Fed s intervention in the housing market is really an intervention in the government bond market the purported switch from buying mortgages to buying government bonds is of little significance.

And the environment might be things like the stock market or the bond market or the commodities market.

Indeed, the bond market channel is unlikely to boost growth.

Bond market crashes have actually been relatively rare and mild.

At the end of the term of the bond, the government repays the bond, plus interest, and the bond is destroyed.

Surprisingly, the bond market still seems almost oblivious to this risk.

The government is now seeking to decontrol domestic interest rates, create a more robust domestic bond market, and finally remove capital controls.

I have been thinking about the bond market for a long time.

For a while, the government dodged trouble by turning to an improved local bond market, which helped reduce borrowing from the central bank.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity. Hence, the Fed s intervention in the housing market is really an intervention in the government bond market the purported switch from buying mortgages to buying government bonds is of little significance.

Economists like to subtract the nominal government bond yield from the inflation indexed bond yield of the same maturity to get a market estimate of the inflation rate from now to that maturity date.

Where the market price of bond is less than its face value (par value), the bond is selling at a discount.

The euro zone s bond and bill markets would complement but not replace individual states existing government bond markets.

But it probably will have little to do with a bond market crash.

In the private bond market In euro, issuance volumes have quadrupled since 1998.

Furthermore, reducing local government financing vehicles exposures is essential. China needs to build its municipal bond market to generate more sustainable funding for infrastructure projects.

European governments debt may all be denominated in euro, but German and Italian debt are hardly the same thing, so the government euro bond market lacks the depth and liquidity of the US Treasury Bill market.

The Japanese 20 year government bond yielded just 0.87 on January 20.

Encouraging participation by foreign investors is a quick way to jump start local bond market activity.

My name is Bond, Jamal Bond.

Let's say they bond here, they bond here, and they bond here.

Bond

Bond

Bond

Bond.

In this context, interest rates would remain capped, mitigating the risk of a disorderly bond market sell off.

Creates a bond, creates a bond of respect.

Bond Street? To Bond Street for a ring.

Economists like to subtract the nominal government bond yield from the inflation indexed bond yield of the same maturity to get a market estimate of the inflation rate from now to that maturity date. But such forecasts of implied inflation can be wild, if not absurd.

To allay anxiety about government profligacy, the ECB built conditionality into its bond purchase program.

They dominated the new government bond markets and branched into other banks and industrial concerns.

Of course, the discipline of the market is not perfect the bond market does not see implicit future liabilities (like promised pension payments) to any great degree.

When that happens, inflationary expectations will mount, long term government bond yields will rise, mortgage rates and private market rates will increase, and one would end up with stagflation (inflation and recession).

Bond offering

Bond Labels

Bond number

Bond order

Bond Radius

Bond Order

Bond Length

Bond Angle