The ISEQ Thread Part II - Trading below 2000

Audi

There will always be work to do. If we end up with a stable population and all the houses and offices we need, with clean water and good sewerage treatment and renewable power supply then there is maintenance and the Arts, culture, music. You could also have move time spent on education, care for elderly, healthcare, education etc etc etc. Then there is science, engineering, pure research and space. There is lots to do what we lack is leaders with imagination.

johnfás

The flight to London is a good idea. Make a weekend of it and go to the theatre. The drive from Clare to Belfast sounds like hell on a winters night. Agree with you about Edinburgh and Newcastle. Newcastle was a real surprise to me there is a lot going on there. Elton Square is another large shopping centre right in the centre of Newcastle. Can be cold in those parts in winter.

Audi. Stop annoying Alex about carbon because it is looked upon as tin foil hat stuff over here. People like Ibis would be looked upon as Loons.

You seem to watch this beardy guy a lot. He is right that the thing to watch is the bond market, I closely follow it. I disagree with him that this 30 year bond auction was a disastor. The tail he refers to of .1% was not bad at all and the number of bids while being low was not too bad either. Considering that the treasury sold 181 billion of different maturities I think things went well.

It can not continue to do well though and I will be on hand to discuss it when the interest rates jump. Most don't even know that this could happen much less expect it.

youngdan wrote:

Audi. Stop annoying Alex about carbon because it is looked upon as tin foil hat stuff over here. People like Ibis would be looked upon as Loons.

You seem to watch this beardy guy a lot. He is right that the thing to watch is the bond market, I closely follow it. I disagree with him that this 30 year bond auction was a disastor. The tail he refers to of .1% was not bad at all and the number of bids while being low was not too bad either. Considering that the treasury sold 181 billion of different maturities I think things went well.

It can not continue to do well though and I will be on hand to discuss it when the interest rates jump. Most don't even know that this could happen much less expect it.

I'd be lying if I said I understand that bond stuff youngdan. Beardy man thinks it was terrible anyway and said the Treasury lost 185 million or something ??? Was it only 10 billion worth of 30 year bonds that were being sold ? And how often are 30 years bonds sold at all ? Any good writers or blogs you'd recommend if a person was interested in that bond stuff ?

Beardy (Nick) was also talking about the Fed interest rate target being 1% but I don't understand that either. He was saying the average effective rate has been around 2.3% . You'd think America was half in tatters looking at some of the news such as GM and all but it probably isn't at all. You've lots of consumption and productive capacity obviously and if you think your 30-year bond sales went well then that's all very positive for the U.S. because there's obviously tons of interest/faith in the economy internationally.

I still think ye're downright greedy eating 20 million out of a 87 million world barrels of world oil consumption per day and the CO2 should be an excuse. Alex needs to be told those things.

Beardy might be only paying close attention only for a short time to the US bond market, who knows. The 30 year bonds are sold every 3 months by the Treasury. These are brand new bonds. Remember that all 30 year bonds that were issued for the last 30 years are still in existance and are traded each day in the bond market. These are the bonds he was referring to when he said that 30 year bonds fell 2 and 8/32. That was a big fall but lads would be looking to sell for numerous reasons, for example they might believe that China was going to sell some of the 30 year bonds they hold to get cash for their stimulas package.

The money he said the treasury lost refers to the extra money the treasury will pay because the interest rate was .1% higher on some of the debt than the average rate paid. This is an auction so different bids get filled at different rates till the 10 billion is allocated. There is always a spread between the bids and the high bids are a bit too eager and get to pay a bit more than average(end up with a lower rate of intesest) The lower bids luck out and end up paying less(end up getting a higher rate of interest). There was 10 billion on offer and there was about 21 billion of bids. There were 11 billion of bids that went home enpty handed. There bid prices were not high enough(they were hoping to force the treasury to pay a higher interest rate)

I missed where he was talking about 1% but that is the Fed funds target rate. This and the discount rate are the only rates the Federal Reserve can influence. The Fed Funds rate changes every day but the Fed takes action to keep it close to 1%. The Fed Funds rate is the interest rates on money lent between banks each night so that they have enough cash to obey the law with regard reserve requirements.

I don't say the sales went well I am saying they did fine all things considered. There is a bit of buying in short duration bonds out of fear but to be able to sell these long term bonds was an achievement. I am expecting a coppapse of this market and am surprised it is doing so well.

I don't know where you would learn about this stuff except a book but it really is not complicated. If you want to just keep a gereral eye on things just pull up Yahoo finance and after it lists the dow, nasdaq and sp it list the 10 year bond. You will see the interest rate change each day. If you see it rise above 4.25 you can pay serious attention.

Do you have a link to the Jones comments

youngdan wrote:

Beardy might be only paying close attention only for a short time to the US bond market, who knows. The 30 year bonds are sold every 3 months by the Treasury. These are brand new bonds. Remember that all 30 year bonds that were issued for the last 30 years are still in existance and are traded each day in the bond market. These are the bonds he was referring to when he said that 30 year bonds fell 2 and 8/32. That was a big fall but lads would be looking to sell for numerous reasons, for example they might believe that China was going to sell some of the 30 year bonds they hold to get cash for their stimulas package.

The money he said the treasury lost refers to the extra money the treasury will pay because the interest rate was .1% higher on some of the debt than the average rate paid. This is an auction so different bids get filled at different rates till the 10 billion is allocated. There is always a spread between the bids and the high bids are a bit too eager and get to pay a bit more than average(end up with a lower rate of intesest) The lower bids luck out and end up paying less(end up getting a higher rate of interest). There was 10 billion on offer and there was about 21 billion of bids. There were 11 billion of bids that went home enpty handed. There bid prices were not high enough(they were hoping to force the treasury to pay a higher interest rate)

I missed where he was talking about 1% but that is the Fed funds target rate. This and the discount rate are the only rates the Federal Reserve can influence. The Fed Funds rate changes every day but the Fed takes action to keep it close to 1%. The Fed Funds rate is the interest rates on money lent between banks each night so that they have enough cash to obey the law with regard reserve requirements.

I don't say the sales went well I am saying they did fine all things considered. There is a bit of buying in short duration bonds out of fear but to be able to sell these long term bonds was an achievement. I am expecting a coppapse of this market and am surprised it is doing so well.

I don't know where you would learn about this stuff except a book but it really is not complicated. If you want to just keep a gereral eye on things just pull up Yahoo finance and after it lists the dow, nasdaq and sp it list the 10 year bond. You will see the interest rate change each day. If you see it rise above 4.25 you can pay serious attention.

Do you have a link to the Jones comments

This is the Long Bond video and the next one is the Fed Funds rate. I commented on Jones here : https://www.youtube.com/watch?v=lGGTEHlMDzw&feature=channel

Yeah I suppose the best way of finding out about this stuff is just watching beardy and asking the likes of yourself. At this stage I'm just picking up vocabulary but I'll get the hang of it after a while. It was informative when you were posting about municipalities issuing bonds - I hadn't realised that happened. I'll just plod along like that so.

Long Bonds