Sunday, July 21, 2019
Hawai'i Free Press

Current Articles | Archives

Tuesday, November 29, 2011
Lucky Hawaii: Bond Sale Benefits as Investors Flee Europe
By News Release @ 2:22 PM :: 6175 Views :: Energy, Environment, National News, Ethics, World News, Family

CREDIT MARKETS: Risk Trade Turned Off, Corporates Still Tap Market

NEW YORK (Dow Jones Nov 17, 2011 excerpt)--Treasury and municipal bonds rallied Thursday as fears of European contagion spread despite renewed buying efforts from the European Central Bank.

"Fear is beginning to give way to panic as European policymakers have failed to adequately ring-fence the crisis," said economists at TD Securities, noting multiple sovereign yields have reached or are nearing euro-area highs. "An uncontained escalation in the European debt crisis will almost certainly push the region into a deep recession, and will undoubtedly take the global economy down with it."

Risky assets, including mortgage-backed securities, sold off. High-grade corporate borrowers, still hoping to access the credit markets before a holiday slowdown and the potential for continued headline risks, were able to ride the flight to safe havens and issue new debt.

 
   Treasurys 
 

Investors flocked to Treasury bonds Thursday as fears about Europe's debt crisis infecting the banking system intensified.

The spike in anxiety comes on growing signs that the region's banks are finding it more difficult and more expensive to get a hold of funding.

The U.S. two-year swap spread--a key credit risk metric measuring the difference between the two-year swap rate and two-year Treasury yield--expanded 2.25 basis points to 53 basis points, the highest since June 2009.

The cost of swapping euros into dollars--another much-watched indicator for signs of stress in the funding market--has widened to levels last seen in December 2008, while short-dated Eurodollar futures point to a rise in three-month dollar Libor, signaling stress in the interbank funding market.

Although the consequences banks are suffering as a result of Europe's unmanageable sovereign debt loads haven't completely halted daily flows, contagion fears are keeping investors on edge and, as a result, the U.S. government debt market well supported.

By late-afternoon trading, benchmark 10-year notes rose 19/32 in price to yield 1.957%--bobbing back below the psychologically key 2% point. Two-year notes shed 1/32 to yield 0.270%, while 30-year bonds gained 19/32 to yield 2.977%. Bond prices move inversely to yields ....

 
     Municipal Bonds 
 

Prices of top-rated municipal bonds largely rallied Thursday, buoyed by strength in Treasurys and as a record amount of weekly supply continued to see good reception.

Yields on triple-A munis maturing beyond 2014 generally fell between one to five basis points, with the most strength in bonds maturing in 2018 through 2020, a benchmark scale from Thomson Reuters Municipal Market Data showed. Yields on bonds maturing in 2012 through 2013 as well as 2025 through 2035 were flat. Prices and yields move in opposite directions.

In the primary market, Hawaii finished the sale of $1.3 billion in general obligation debt, opening bidding Thursday to institutional investors. Yields on the deal were lowered as much as nine basis points, compared with levels offered earlier in the morning, one market participant said. The longest maturity, in 2031, offered a coupon of 4% and a yield of 4%, a term sheet showed.

read ... The Entire News Release

For Amusement: Abercrombie claims his Charisma Swayed Investors to Buy Hawaii Bonds

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

Affordable Hawaii Coalition

ALEC

Alliance Defending Freedom

Aloha Conservative Alliance

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT