INVESTORS INSIGHTS - Beware Liquidity Drying Up Global Bond Markets

Liquidity Mirage Causes Volatility

In Government Bonds

At the moment, volatility in the government bond market continues to be a huge theme in the market and one that investors need to consider and address.  Whatever the initial causes of the adjustment in relative and absolute yield curves and there are plenty of potential culprits – Federal Reserve rate expectations, European Central Bank quantitative easing, inflation forecasts etc. – the subsequent severe volatility has been without doubt exacerbated by the lack of liquidity.

What is particularly worrying is that this lack of liquidity is occurring in global government bond markets, which are deemed to be the most-liquid fixed-income sectors.  To highlight this issue, Bloomberg reported that on ICAP's  BrokerTec  platform's (an electronic trading system for FI markets) April volumes fell 14 per cent from a year ago and were the lowest in six years. Read More.

INVESTORS' INSIGHTS  - "Today's Edge" 

Sooner or later the bond market will run out of bigger fools as inflation is much higher than reported by governments while investors are losing principal with negative real returns. In essence we are seeing a global debasement of all currencies under present policies.

When the bonds crash they will bring down the markets too. Time has come to unload those highflyers that have no earning because they can drop like a stone from dollars to pennies, all in the blink of young girl's eyes.

International Offices

May 19, 2015 

#SPROTT MONEY - Volatile Bond Markets

SPROTT MONEY

Weekly Wrap-up

May 16, 2015

BONDS STILL 
VOLATILE 

Listen to Eric Sprott shares his views on the status of the economy, volatility in the bond markets, the launch of BitGold this week, Indian gold demand, and movement in the precious metals market. Tune-in to the Weekly Wrap Up

 http://www.sprottmoney.com/sprott-money-weekly-wrap-up

www.firstfinancialinsights.blogspot.com

SPROTT MONEY - Weekly Wrap-up

SPROTT MONEY

Weekly Wrap-up

April 25, 2015

GREEK DEBT CRISIS

 Listen to Eric Sprott share his views on this weeks release of current U.S. economic data, the Greek debt crisis and the eurogroup meeting this weekend in Riga, the farce of high frequency trading and the lack of responsible regulation, and Swiss gold exports and global demand.


 http://www.sprottmoney.com/sprott-money-weekly-wrap-up

www.firstfinancialinsights.blogspot.com

China's Stock Market A Casino

Beijing 'may be playing risky game in 

stock rally'

THE Chinese stock market is on fire after a rally sent the benchmark equity index to a seven- year high, but experts say Beijing could be playing a risky game in its bid to revive the economy through a boost to stocks.

After a previous market crash wiped out more than US$3.5 trillion (S$4.7 trillion) from the market's 2007 peak, a new bull run has taken hold. The Shanghai index has more than doubled since the run-up began last July.

While stocks have been gaining on the back of expectations of new measures to spur the slowing Chinese economy, experts say this rally is not without a key cheerleader - Beijing itself. Read More.

Huge Rally -  Remember Japan

China's Stock Market A Casino

Beijing 'may be playing risky game in 

stock rally'

THE Chinese stock market is on fire after a rally sent the benchmark equity index to a seven- year high, but experts say Beijing could be playing a risky game in its bid to revive the economy through a boost to stocks.

After a previous market crash wiped out more than US$3.5 trillion (S$4.7 trillion) from the market's 2007 peak, a new bull run has taken hold. The Shanghai index has more than doubled since the run-up began last July.

While stocks have been gaining on the back of expectations of new measures to spur the slowing Chinese economy, experts say this rally is not without a key cheerleader - Beijing itself. Read More.

Huge Rally -  Remember Japan