September 3, 2010
Corporate bonds continued to slide on improved economic data easing concerns about the economy. Stocks gained and government bonds ended in the red, pushing yields higher. As a result, spreads tightened for corporate bonds, essentially reducing the extra yield demanded by investors to hold riskier corporate debt rather than government bonds.
iTB 1-5 Year High Grade Corporate Bond Index
The shorter-maturity iTB shed its gains from yesterday, shedding 0.1% to 1079.87. Average
By Rom Badilla, CFA & Maulik Mody – Bondsquawk.com
September 1, 2010
Today’s payroll data brought the week to end on a positive note easing concerns about the economy and dismissing fears of a potential double dip. Investors bid up stock prices and sold off Treasuries as they gained their appetite for riskier assets. Stocks ended in the green for a third day today and the yield curve steepened, allowing investors to enter the long weekend
By Rom Badilla, CFA – Bondsquawk.com
September 3, 2010
According to the U.S. Department of Labor, the private sector added jobs last month, curtailing concerns of a weakening economy and the prospects of falling into a recession. Private Payrolls for August increased by 67,000 people after the July estimate was revised upward by 36,000 to a final tally of 107,000 people. The August addition by U.S. companies surprised the market as forecasters expected an addition of only
September 2, 2010
As stocks extended gains for a second day and Treasuries fell, corporate bonds continued to outperform government bonds as spreads tightened. The short index gained while the long fell, appearing as if investors stayed near the exit as they await tomorrow’s data release and gear up for the long weekend.
iTB 1-5 Year High Grade Corporate Bond Index
The shorter-maturity iTB index inched up by 0.1% to
By Rom Badilla, CFA & Maulik Mody – Bondsquawk.com
September 1, 2010
Stocks continued to rise for a second day and Treasuries fell after pending sales of used homes and retail data came in better than expected. Investors bid up equities and sold Treasuries as they await Friday’s job data, which if disappointing can cause the markets to shed its gains since yesterday. The Euro ended slightly stronger while government bonds in European countries were mixed
September 2, 2010
Disappointing economic numbers in recent times have pointed towards a slowing economic recovery and increased demand for safe assets. As a result, bonds have outperformed most asset classes even amidst a heated debate of a bond bubble haunting the markets. Now that September kicks off on a positive note as stocks advance and economic data improves slightly, investors again start pondering over the question that has troubled them for months. Is this the signal
By Rom Badilla, CFA – Bondsquawk.com
September 2, 2010
The National Association of Realtors reported that more people signed contracts to purchase a home than the previous month. Pending Home Sales, which is a leading indicator of home activity and provides insight on economic growth, increased by 5.2 percent in July on a monthly basis. Economists were expecting sales to decline by 1.0 percent following a revised prior period drop of 2.8 percent. While the gain
September 1, 2010
Corporate bonds gained yesterday but failed to catch up Treasuries as a result of which spreads had widened. Today company issued bonds slid but did not fall as much as Treasuries, and as a result, spreads tightened.
iTB 1-5 Year High Grade Corporate Bond Index
The shorter of the two iTB Indices shed 0.1% on the first day of the week as investors, surprised by the slightly improved economic data, sold bonds
By Rom Badilla, CFA & Maulik Mody – Bondsquawk.com
September 1, 2010
After seeing losses in the month of August, stocks rallied on the first day of September and Treasuries collapsed as economic fears seemed to ease. The rally was mainly fueled by better than forecast manufacturing activity in China and the U.S. Stocks and commodities gained as investors finding their appetite for risky assets. Dow Jones gained 2.54%, cutting close to half of its
By Rom Badilla, CFA – Bondsquawk.com
September 1, 2010
Manufacturing activity in the U.S. accelerated in August according to the Institute for Supply Management, defying widespread belief that the economy is in the midst of a slowdown. ISM reported that its survey index increased to 56.3 in August from 55.5 in the previous month. The increase surprised market expectations as economists forecasted a decline in the national survey to 52.8 after previously released regional surveys such
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