The Treasury Department raised the fixed rate on their Series I Savings Bond from May 2008′s unprecedented ZERO percent fixed rate to a more enticing rate of 0.70%. Combined with the new inflation rate of 4.92%, November 2008′s I Bond total earnings rate is now 5.64%. According to TreasuryDirect: The earnings rate for Series I [...]
Category Archives: Bond Market
I.O.U.S.A. the Movie
Wake up, America! We’re on the brink of a financial meltdown. Got your attention yet? That’s the outlook for supporters of the soon-to-be released documentary entitled: I.O.U.S.A.: One Nation. Under Stress. In Debt., which centers on the shape and impact of the United States national debt. As described on their website, this documentary boldly examines the [...]
Junk Bonds as Market Indicator
I’ve been in a 100% cash position with my retirement portfolio for a while now and I’ve been asked a “couple” of times (I don’t get a lot of readership), how will I know when it’s time to “get back in”? Of course, I don’t have the precise answer people are looking for, or even [...]
One-Year T-Bill Auction
With all of the economic data due this week that could affect the direction of stock market, we tend to forget about issues involving the bond market. Tuesday marks the debut return of the One-Year T-Bills (pdf). The degree of success the Fed has in selling these new issues will determine the fate of all [...]
Fed Bailout Consequences
Speaking of Warren Buffett.. According to the Reuter’s article “Buffett says Fed avoided chaos in Bear bailout”, WB is to have said: “I think the Fed did the right thing in stepping in on Bear Stearns,” Buffett said at the annual meeting of his Berkshire Hathaway, Inc. insurance and investment company. “Just imagine the thousands [...]
High Yield, HighTailed
With all of the flight to quality lately, the phrase “junk bond” doesn’t conjure up any warm and fuzzy feelings. As a matter of fact, it does just the opposite. The junk bond (high yield) sector has been hit hard this past month, and investors have been “hightailing it” in droves. I watch The Vanguard [...]