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Sunday 24 May 2015

INVESTORS INSIGHTS - Beware Liquidity Drying Up Global Bond Markets

Liquidity Mirage Causes Volatility

In Government Bonds




At the moment, volatility in the government bond market continues to be a huge theme in the market and one that investors need to consider and address.  Whatever the initial causes of the adjustment in relative and absolute yield curves and there are plenty of potential culprits – Federal Reserve rate expectations, European Central Bank quantitative easing, inflation forecasts etc. – the subsequent severe volatility has been without doubt exacerbated by the lack of liquidity.




What is particularly worrying is that this lack of liquidity is occurring in global government bond markets, which are deemed to be the most-liquid fixed-income sectors.  To highlight this issue, Bloomberg reported that on ICAP's  BrokerTec  platform's (an electronic trading system for FI markets) April volumes fell 14 per cent from a year ago and were the lowest in six years. Read More.


INVESTORS' INSIGHTS  - "Today's Edge



Sooner or later the bond market will run out of bigger fools as inflation is much higher than reported by governments while investors are losing principal with negative real returns. In essence we are seeing a global debasement of all currencies under present policies.

When the bonds crash they will bring down the markets too. Time has come to unload those highflyers that have no earning because they can drop like a stone from dollars to pennies, all in the blink of young girl's eyes.


May 19, 2015 

Saturday 16 May 2015

#SPROTT MONEY - Volatile Bond Markets

SPROTT MONEY
Weekly Wrap-up
May 16, 2015





BONDS STILL 
VOLATILE 

Listen to Eric Sprott shares his views on the status of the economy, volatility in the bond markets, the launch of BitGold this week, Indian gold demand, and movement in the precious metals market. Tune-in to the Weekly Wrap Up

 http://www.sprottmoney.com/sprott-money-weekly-wrap-up




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Earth In Trouble