Budget Deficit

Oil Bear Market Sends Global Stocks, Yields Sliding; Chinese MSCI Addition Fizzles

In an eventful overnight session which saw a historic transition in Saudi Arabia, an unexpeted Republican victory in the Georgia Special Election, China's inclusion in the MSCI EM index and Travis Kalanick's resignation, S&P futures continued to fall, alongside stock markets in Asia and Europe, while oil prices extended their drop despite a larger than expected draw reported by API on Tuesday.

Argentina Unexpectedly Announces Sale Of 100-Year Bonds

One year after Argentina emerged from its latest sovereign bankruptcy, and at a time when the Latin American nation grapples with a surging budget deficit, Argentina surprised markets by announcing its intention to sell its first 100-year bond, taking advantage of a world starved for yield.

One Trader's Advice To Bond Bears: "Come Up With Something New"

"U.S. Treasury bears haven’t come up with a compelling new argument in months, nor a reason why any of the old, stale logic will suddenly become valid now.... if current yields are supposedly unsustainable, then all the evidence points to the fact that they need to come lower if anything."

Paul Singer Warns "All Hell Will Break Loose"

"Given groupthink and the determination of policy makers to do ‘whatever it takes’ to prevent the next market ‘crash,’ we think that the low-volatility levitation magic act of stocks and bonds will exist until the disenchanting moment when it does not. And then all hell will break loose." - Paul Singer

Economists Puzzled By Unexpected Plunge In Saudi Foreign Reserves

Saudi Arabia's reserves inexplicably tumbled below $500 billion in April for the first time since 2011 even after accounting for the first ever Islamic bond sale, fueling speculation it’s triggered by capital flight and the costs of the kingdom’s war in Yemen.

...And Now For The Bad News

This is the most important thing to understand about US federal government spending: the built-in costs are so extreme that they can’t possibly make ends meet. And the problem becomes worse each year...