U.S. Bonds Cheapest
Since ’90 Versus Bunds Counter Buffett Pity
The longest decline in Treasuries this year has left U.S.
government debt the cheapest since March 2011 when measured by real yields and
the best relative value compared with German bunds in more than two decades.
After inflation, 10-year U.S. notes yielded 0.91 percent last week, or 1.77
percentage points more than real yields on U.K. gilts, the widest spread in 25
months. Versus Germany, the securities are the least costly in 23 years when
adjusted for the recent record-low interest rates around the world that
distorted the normal relationship, according to FTN Financial. Federal Reserve
Chairman
China ‘hard-landing’
trades revisited
A string of banks trimming their Chinese growth forecasts
last week does not have alarm bells sounding yet. But as well as reviewing
China’s misfiring economy, it is probably time to revisit some “China
hard-landing” trades. So far this year, the principal China story has been one
of growth and policy disappointments, leading to a steady de-rating of Chinese
equities. A key debate has been the extent to which we are witnessing a
cyclical downturn or a harder-to-fix structural one. The former used to hold no
fear — the expectation being that Beijing had the financial resources in
reserve to backstop
http://www.financialjuice.com/News/108212/China-hard-landing-trades-revisited.aspx [19]
QE Halt Would Be 'Too
Violent' for Market: Fed's Fisher
The Federal Reserve should go from "wild turkey"
monetary policy to "cold turkey" overnight, Dallas Fed President
Richard Fisher told CNBC on Monday, saying that when the dial back is the key
because stopping would be "too violent for the market." Fed Chairman
Ben Bernanke's principle concern is the efficacy of the central bank's $85
billion a month bond-buying program, Fisher said in a "Squawk Box"
interview.
http://www.financialjuice.com/News/108209/QE-Halt-Would-Be-Too-Violent-for-Market-Feds-Fisher.aspx [20]
No Love for Precious
Metals – Silver Gets Slammed
First it was gold, and now it's silver. The metal fell
victim to heavy selling on Monday, dragging gold down with it, on U.S. dollar
strength and as investors turned more cautious on precious metals as an
alternate investment, said experts. "We feel silver weakness has been a
liquidation trade as investors grow increasingly wary of precious metals and
traders are forced to close positions to meet margin calls elsewhere,"
said Stan Shamu, strategist at trading firm IG Markets.
http://www.financialjuice.com/News/108181/No-Love-for-Precious-Metals--Silver-Gets-Slammed.aspx [21]
Hedge Fund Owner Gets
Subpoena to Testify
Steven A. Cohen has received a subpoena to testify before a
grand jury in the government's insider trading investigation into his hedge
fund, SAC Capital Advisors, a development that signals a newly aggressive phase
in the multiyear inquiry, according to lawyers and executives briefed on the
case. Issued last week, the grand jury subpoena came as part of a broader round
of requests from criminal authorities. Other SAC executives were also named in
the subpoenas, the lawyers and executives said, and the fund itself received
requests for information about its activities.
http://www.financialjuice.com/News/108214/Hedge-Fund-Owner-Gets-Subpoena-to-Testify.aspx [22]
USD/JPY retreats on
comments from Amari
The USD/JPY has held the spotlight overnight, as the move
towards 103.00 was slowed after comments made by Japan’s Economy Minister Akira
Amari. He stated concern over the recent depreciation of the Japanese currency
http://www.financialjuice.com/News/108168/USDJPY-retreats-on-comments-from-Amari.aspx [23]
End of Gold’s Dead
Cat Bounce
May 20, 2013 – Gold (daily chart) has approached an end to
its “dead cat bounce” that brought the precious metal up to an early May high
of 1488, which was also right at the 61.8% Fibonacci retracement of the prior
plunge
http://www.financialjuice.com/News/108204/End-of-Golds-Dead-Cat-Bounce.aspx [24]
EU law key to ending
'too big to fail' banks: BoE's Tucker
A European Union law up for a vote on Monday will only fully
shield taxpayers from bailing out troubled banks if there is a global framework
as well, a top UK regulator said on Monday
Gulf wealth funds
raising private equity investments: study
Sovereign wealth funds in the Gulf Arab region are raising
their allocations to private equity investments at a faster rate than other
types of investment, U.S. fund manager Invesco says in a new study
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