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US Bond Market 2016

US Bond Market 2016 In light of the failure of Congress and President Obama once again breaking the deadlock in the situation regarding the limits of religion, «Wall Street», Washington and directed their attention to an important question, which is: How long them to Centument Software investors? Said William Daily, White House chief of staff in «Face The Nation» Sunday morning program on Channel «CBS»: «probably be in front of us a few days of tension for the market and the world and Americans». And it indicates the initial reaction to the crisis to concern in global markets as the dollar lost strength against other currencies and the decline in futures in the US capital markets and the high price of gold, which is a store of value during times of doubt and uncertainty.

US Stocks
US Stocks

But nonetheless I enjoyed US Treasury bonds, which are long-time market more safer havens, which are resorted to in the world, relative stability of Centument Software
Fred Dickson, chief strategist in the company «Davidson Kambynaz» brokerage and money management in Montana says: «it is not surprising to see little response from global acts on the lack of any indication of near reaching an agreement. Maybe sale of bonds of 1 to 2 per cent. » It’s too early to know the impact of the impasse on the markets during the week and whether the sale of the bond rate will increase or not.

She told the Treasury Department that the government must reach an agreement by the second of August, otherwise you’ll run the risk of failing to meet its obligations such as interest on debt or social security or pay the salaries of federal employees for a temporary period.

Some investors believe that the United States will back down from its position on the private debt. Analysts have pointed out that the government is about to reach an important financial agreements in the past without a major collapse in the market. But the biggest concern in the markets remain represented in the loss of confidence of investors in Treasury bonds and the trend toward selling them, which would reduce the value and increase the interest rates on them. Said John Canavan, Centument Reviews market analyst at the company «Land Stone McCarthy Research» Research in Princeton, New Jersey, said he believed that some investors may sell US Treasuries to buy German bonds, or assets in Asia and in emerging countries with economies markets. He pointed out that foreign investors own a large share of the US debt than was the case several decades ago. Canavan and adds: «They do not have those bonds out of the national feeling, so it will dispose of them if they feel that kept them represents a threat». Canavan replied without hesitation when asked how long investors will become more nervous and tense, saying: «now. There is an exception in the case of whether reached a deal, but given the failure witnessed this week, I think that the confidence of the market back down ».

There was no strong reaction in Asian markets on Monday, as it dropped all of the indices «nee Kay 225» in Japan and «Straits Times» in Singapore by 0.8 per cent. The decline «Standard & Poor’s» index in Australia increased by 1.6 per cent, while «Shanghai Composite» index decline in the Chinese stock market by 3 per cent, with investors selling the shares of infrastructure after the collision of a massive train crash in eastern China last weekend.
Gold prices rose to a maximum nominal rates, as the price above $ 1 622 an ounce and the price of $ 1617 traded by the afternoon in Asia. And it decreased index futures «Standard & Poor’s 500 stock» by about 1 per cent.

European stock markets fell by 1 per cent or less, while swing the dollar exchange rate against other currencies. But he came back to rise against the euro and the British pound, but fell again against the yen fell to its lowest level against the Swiss franc, which is usually seen as a safe store of value. It is often difficult to determine the moment of the beginning of panic, the financial crisis in 2008, for example, go back to the summer of 2007, but it did not lead to total chaos in the Centument Review market for more than a year. He said a lot of government officials during that period that the situation is under control.

It includes the situation in the United States some of the classic ingredients for disorders of the sales process in the words of financial historians. Panic sometimes happens when uncertainty surrounds one of the assets that are seen as extremely safe. It includes other cases of financial turmoil speculation amounts in a particular investment, which is often a very safe and sometimes include low interest rates. Some financial historians believe that the markets have become more prone to panic than previously because of pumping a large amount of money in short-term investments such as money market funds. See David Moss, professor of economic policy at the Faculty of Business Administration at Harvard University, that the current situation is unusual, though in a manner that is important. He explained that the Treasury Binary Options ATM Review bonds a safe store of value during times of panic, so maybe people do not escape them. Moss added that the result may be «crazy rush» away from Treasuries or «not to take a position because of uncertainty».
Treasuries have been the cause pivotal to panic in the United States before, but Richard said Sylla, finance professor at the Stern School of Business at New York University, that American history provides examples of this, as in 1792 when a trader Treasuries suffered from problems, led that a sharp rise in bond market lost 25 per cent of its value.
After that hundred years the Congress was forced to convene an emergency session due to lack of gold reserves in the Treasury Department with foreign investors abandon the dollar versus gold in the words of Sila. He explained: «Now we can talk about that can happen if China sold all of its holdings of US Treasury bonds. In 1893, foreign investors do exactly this. » Sylla’s initial estimate of the current situation is «they are playing with fire in Washington, DC now.» Said Kevin Flanagan, head of fixed income at «Morgan Stanley Smith Barney», about it: «When you are in the area of ​​the bond be thinking in defaults like material Binary Options ATM that weaken Superman, so it is not the word you want to hear it». But perhaps because no one wants to talk seriously about panic, Moss and Silas and Flanagan said they do not believe in Washington’s ability to reach an agreement before the second of August (August) next. This will avoid technical default on short-term payment defaults and non-permanent default which could happen if the government was forced to postpone the payment of some financial obligations on a temporary basis, at the time of the budget to reach a special agreement.
In addition to monitoring market indicators such as the interest rate on Treasury prices. Traders said they were eager to see whether the Treasury will announce on Monday cut the size of new bond auction this week or not. The ministry has reduced the size of the Centument bonds offered in the auction over the last month to allow more flexibility in the case not to increase the debt limit next week.

Moss said he did not believe that many people who thought that the state may turn to the risk of a full default on its debt and refuses to pay. But he said the panic may «acquires a stand-alone life» in the event of the expiration of the deadline, which expires on the second of August, for example, in case the need to terminate the contracts that rely on bond. When it comes to permanent investors, it did not see David Armstrong, a financial advisor in Washington and Executive Director of the Foundation Centument LTD, a lot of panic, they just called him two cardholders than 125 clients last week, while not related one by the end of the week. And he explains: «does not seem that people think that it will end default on payment. Everyone is talking about it, while not a feel panicked him. »

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