Bond Market

  • Citibank tells judge: Let Argentina pay bondholders interest Associated Press - 12 hours ago

    A Citibank lawyer warned a judge on Tuesday that its Argentina branch will be in "great danger" if he refuses to let the South American nation pay interest to bondholders. Attorney Karen Wagner ...

  • US court demands info on new Argentina bond issue AFP - Thu, Feb 26, 2015 8:24 PM AEDT
    US court demands info on new Argentina bond issue

    The New York judge in charge of Argentina's debt dispute with two large hedge funds demanded information Thursday on a new $2 billion bond issue by the country. New York federal district court judge Thomas Griesa told Deutsche Bank and JPMorgan Chase, reported to be assisting in the bond sale, to immediately provide information on the bonds to NML Capital, one of the two hedge funds. Bloomberg News reported earlier that the country, currently in default on some of its international debt, is seeking to raise funds to pay $6.3 billion it owes creditors in October. The bonds are being marketed privately, and could be issued under Argentina local law, rather than US or European law like most of the country's foreign debt.

  • Aust bond prices rally on Yellen testimony AAP - Wed, Feb 25, 2015 5:16 PM AEDT

    Australian bond futures prices have rallied after the head of the US Federal Reserve gave no indication on whether the central bank would start hiking rates in June. At 1630 AEDT on Wednesday, the March 2015 10-year bond futures contract was trading at 97.540 (implying a yield of 2.460 per cent), up from 97.495 (2.505 per cent) on Tuesday. The March 2015 three-year bond futures contract was at 98.160 (1.840 per cent), up from 98.140 (1.860 per cent).

  • NY lawyer: Argentina not responding to negotiation requests Associated Press - Fri, Feb 20, 2015 10:54 AM AEDT

    A lawyer appointed to lead negotiations between U.S. bondholders and Argentina over unpaid debts said Thursday the South American nation is not responding to requests to negotiate. Special Master Daniel ...

  • Bond futures prices lower AAP - Mon, Feb 16, 2015 5:00 PM AEDT

    Bond futures prices are lower amid optimism about the eurozone economy and Greek debt negotiations. Stronger than expected eurozone economic growth figures have boosted risk appetite, with investors abandoning ...

  • Aust bonds fimer despite early fall AAP - Fri, Feb 13, 2015 5:03 PM AEDT

    The bond market is firmer despite initially falling on the back of positive comments about the economy by the Reserve Bank governor. UBS interest rate strategist Matthew Johnson said there was a move out of shorter dated bonds when Glenn Stevens appeared upbeat about the strength of the labour market in testimony to parliament. Bond futures prices received some support later in the day after a $600 million Commonwealth government bond auction, but the main reason for the late rally was buying ahead of the weekend, Mr Johnson said. "It was a good (bond auction) result but not enough to cause the size of he rally that we've seen," he said.

  • Aust bonds regain overnight losses AAP - Tue, Feb 10, 2015 4:52 PM AEDT

    The Australian bond market gave up some ground overnight but has since pared back its losses thanks to continuing overseas demand for triple-A rated Commonwealth government securities. Nomura head of macro products Jon Linton said Australian bond futures have been tracking overseas bonds in recent overnight sessions only to gain ground during the local session. "What we're seeing again today is a reasonable level of support for Australian government bonds, they've pared back some of the losses made overnight, so we're off the lowest levels which we reached this morning," he said. Mr Linton said expectations that the Reserve Bank's cash rate will fall to at least two per cent are also giving three year bond futures yields support when they reach that level.

  • Why you should care what bonds, foreign bonds, are doing Associated Press - Fri, Feb 6, 2015 7:36 AM AEDT

    It would be nice -- and so, so easy -- to ignore what bond markets are doing in Germany, Japan and Zambia. But you shouldn't. If you own a bond mutual fund or have a 401(k) account, there's a good chance ...

  • Aust bond futures prices surge AAP - Thu, Feb 5, 2015 9:19 AM AEDT

    Australian bond futures prices are higher as falling oil prices dampen risk appetite. Bond prices were initially weaker overnight following encouraging economic data out of Europe and the US, and a stimulus ...

  • Greece pays higher rate in new govt's first bond sale AFP - Wed, Feb 4, 2015 11:41 AM AEDT
    Greece pays higher rate in new govt's first bond sale

    The new Greek government held its first bond auction since taking office on Wednesday, raising 812.5 million euros in six-month treasury bills on a higher rate than last month. The sale, which is being closely watched as an indication of investor confidence in the new Athens government, attracted less interest than previously. Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis are this week visiting EU leaders and officials at the European Central Bank to seek support for their bid to renegotiate Greece's mountain of debt and end austerity.

  • Has 'Japanification' hit German bunds? CNBC - Wed, Feb 4, 2015 2:18 AM AEDT
    Has 'Japanification' hit German bunds?

    The yield on Japan's benchmark bond has risen above its German equivalent for the first time, sparking fears that Europe was stick in slow growth.

  • Greece gets creative in bid to ease debt burden AFP - Tue, Feb 3, 2015 7:41 PM AEDT
    Greece gets creative in bid to ease debt burden

    "If we need to use euphemisms and tools of financial mechanisms to get Greece out of its debt-slavery, we will do it," Finance Minister Yanis Varoufakis said Tuesday. According to an interview with the Financial Times published Tuesday, Varoufakis proposes to replace 25 billion euros in Greek bonds owned by the European Central Bank (ECB) with "perpetual bonds", which have no set maturity or expiration date. Under the scheme, the central bank in Frankfurt would neither suffer losses on its Greek debt, nor have to declare Athens in default -- avoiding dramatic market turbulence that would erupt if Greece were unable to honour matured bonds.

  • S&P to pay $1.37 bn to resolve mortgage crisis lawsuits AFP - Tue, Feb 3, 2015 2:56 PM AEDT
    S&P to pay $1.37 bn to resolve mortgage crisis lawsuits

    US rating firm Standard & Poor's said Tuesday it had agreed to pay $1.37 billion to settle lawsuits that it overrated mortgage bonds at the heart of the "subprime" housing crisis. S&P said it had not admitted to any legal violations in the settlements, which resolve 2013 lawsuits filed by the US Department of Justice, 19 states and the District of Columbia. Under a separate settlement with California pension fund CalPERS over mortgage deals, the company will pay $125 million. S&P said it would pay $687.5 million to the Justice Department and $687.5 million to the states and Washington, DC.

  • Why Treasury yields can't arrest the freefall CNBC - Mon, Feb 2, 2015 10:40 AM AEDT
    Why Treasury yields can't arrest the freefall

    The fall in longer term U.S. Treasury yields is a side effect of funds fleeing low yields elsewhere, say analysts.

  • Power Play: Betting on bonds CNBC - Fri, Jan 30, 2015 5:03 AM AEDT
    Power Play: Betting on bonds

    Two market strategists betting on bonds in a volatile stock market.

  • Record bond prices as RBA expected to cut AAP - Thu, Jan 29, 2015 4:58 PM AEDT

    Australian bond prices have hit record highs amid growing expectations that the Reserve Bank will cut the cash rate to a new record low next week. The market is now pricing in a two in three chance that the RBA will cut the cash rate from 2.5 per cent to a new low on February 3. "Bonds are all the rage at the moment," UBS interest rate strategist Andrew Lilley said. "These are the lowest yields on most bonds across the curve since Australia established its bond market.

  • 8 Tips for Bond Investors Watching Rising Rates US News - Sat, Jan 24, 2015 5:24 AM AEDT

    Interest rates will rise. As the economy improves, the Federal Reserve gets closer to raising interest rates. U.S. News contributors and Smarter Investor bloggers share their tips on how to rebalance your bond portfolio in preparation for rising rates. Consider buying a bond fund.

  • Treasury prices whipsaw after ECB announcement CNBC - Fri, Jan 23, 2015 6:25 AM AEDT

    US yields fell in volatile trading on Thursday after the European Central Bank unveiled a more aggressive than expected bond-buying program.

  • Are Europe's low bond yields a bargain? CNBC - Thu, Jan 22, 2015 9:43 AM AEDT
    Are Europe's low bond yields a bargain?

    With quantitative easing on the cards, Europe's already low interest rates are set to fall further, but some fund managers believe the continent will offer the best bond returns.

  • Bonds firm on stimulus hopes AAP - Thu, Jan 22, 2015 9:34 AM AEDT

    St George senior economist Janu Chan said overseas equities and local bond futures were strengthened by reports the European Central Bank's new bond buying programs could be as large as $US50 billion euros ($A61.7 billion) per month. "Additionally, the Bank of Canada surprised markets by cutting rates by 25 basis points, indicating that central banks around the world are still turning on the monetary stimulus taps," she said. At 0830 AEDT on Thursday, the March 2015 10-year bond futures contract was trading at 97.465 (implying a yield of 2.535 per cent), up from 97.440 (2.560 per cent) on Wednesday. The March 2015 three-year bond futures contract was at 97.970 (2.030 per cent), up from 97.920 (2.080 per cent).

  • Long bond prices gain, ECB meeting in focus CNBC - Thu, Jan 22, 2015 2:14 AM AEDT

    U.S. government debt prices climbed on Tuesday as investors waited to see if the ECB will announce a stimulus package on Thursday.

  • Dominican Republic issues a record $2.5 billion in bonds Associated Press - Thu, Jan 22, 2015 1:30 AM AEDT

    The Dominican Republic has issued $2.5 billion in bonds, the largest amount in the country's history. The administration of President Danilo Medina said in a statement late Tuesday that the bonds also ...

  • Fitch Affirms Guam's Business Privilege Tax Revs at 'A-'; Outlook Stable Business Wire - Wed, Jan 21, 2015 8:37 AM AEDT

    The bonds are special limited obligations of the government of Guam secured by a lien on 3% of the 4% BPT levied on goods and services. STRUCTURE PROTECTS BONDHOLDERS: The rating reflects a structure and revenue pledge that insulates the bonds from Guam's somewhat weak general fund operations. Bonds have a first lien on pledged BPT revenues, there is strong non-impairment language, and Guam cannot file for bankruptcy protection. Pledged revenues in fiscal 2014 provide 6.1x coverage of maximum annual debt service (MADS) and bondholders are protected by an additional bonds test requiring 3x MADS coverage.

  • How to get your bonds ready for a Fed rate hike CNBC - Tue, Jan 20, 2015 11:17 PM AEDT
    How to get your bonds ready for a Fed rate hike

    There are ways investors can diversify holdings in preparation for rising bond yields later this year. Options include floating-rate and value funds.

  • Better China data weigh on Aust bonds AAP - Tue, Jan 20, 2015 5:10 PM AEDT

    Australian bond futures prices are lower following better than expected Chinese data and a switch back to risky assets in the wake of last week's Swiss central bank announcement. Bonds were also weaker in the wake of the Swiss National Bank's decision to end its three-year bid to artificially hold down the value of its currency against the euro. "Post the SNB panic, people are going back to risky assets and that helps bonds to sell off," he said. At 1630 AEDT on Tuesday, the March 2015 10-year bond futures contract was trading at 97.375 (implying a yield of 2.625 per cent), down from 97.405 (2.595 per cent) on Monday.

  • Forget US bonds, this is the play now: Pimco CIO CNBC - Sat, Jan 17, 2015 8:22 AM AEDT
    Forget US bonds, this is the play now: Pimco CIO

    As economic trends indicate the 10-year and other U.S. Treasurys could tank even lower, Pimco has shied away from U.S. bonds.

  • Analysts divided over ECB's need to act AAP - Fri, Jan 16, 2015 9:01 AM AEDT

    With the eurozone facing the possibility of years-long economic stagnation, its central bank is expected to soon announce its biggest stimulus measure yet. They question the merits - and even see dangers - in the new stimulus program, which would involve the large-scale buying of government bonds. European Central Bank president Mario Draghi is facing unusually outspoken opposition from a minority on his 25-member board ahead of what's expected to be a showdown policy meeting January 22. Under the new stimulus being considered, the central bank would buy governments bonds from banks with newly created money.

  • $39M lawsuit stemming from failed sweetener plant settled Associated Press - Thu, Jan 15, 2015 7:21 AM AEDT

    Attorneys said an investment firm settled a federal class-action lawsuit Wednesday that accused it of bilking investors across the United States out of $39 million in bonds in a botched plan to build an ...

  • EU court opinion eases way for more eurozone stimulus Associated Press - Thu, Jan 15, 2015 12:54 AM AEDT
    EU court opinion eases way for more eurozone stimulus

    FRANKFURT, Germany (AP) โ€” A legal opinion issued Wednesday by an adviser to the European Union's top court helps clear the way for bigger stimulus measures from the European Central Bank, analysts said.

  • European court adviser: bond-buying stimulus is legal Associated Press - Wed, Jan 14, 2015 10:17 PM AEDT

    An adviser to the European Court of Justice says the European Central Bank's offer to purchase government bonds of troubled countries โ€” a key backstop in Europe's struggle against its debt crisis โ€” is ...

  • Aust bonds firm ahead US jobs data AAP - Fri, Jan 9, 2015 4:42 PM AEDT

    Australian bond futures prices are firm ahead of the release of important US jobs data. There has been little movement in prices as investors prepare to take on more risk. RBC Capital markets fixed income ...

  • Risk appetite weighs on Aust bond prices AAP - Thu, Jan 8, 2015 9:22 AM AEDT

    Australian bond futures prices are mixed following a resurgence of risk appetite overnight. Better-than-expected US economic figures and stronger share markets were weighing on bond prices following their ...

  • Why some bond investors don't mind losing money CNBC - Thu, Jan 8, 2015 4:43 AM AEDT
    Why some bond investors don't mind losing money

    Demand for German bonds is so strong that some investors are willing to pay to own them. That's not the way a bond is supposed to work.

  • 5 Bond Myths Investors Should Know US News - Tue, Jan 6, 2015 1:23 AM AEDT
    5 Bond Myths Investors Should Know

    Investing is often made more complicated than necessary by the financial media and the self-styled "experts" featured in its coverage. So maybe it's not surprising that, for many investors, bonds ...

  • German, French bond yields at record low on Greek fears AFP - Tue, Dec 30, 2014 4:40 PM AEDT
    German, French bond yields at record low on Greek fears

    The borrowing costs of Germany, France, Spain and Italy hit new record lows on Tuesday as investors piled in to relatively safe-haven bonds amid uncertainty over Greece's political crisis. The yield on ...