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Monday, Sep 14
Moody's, S&P weigh in on big California debt sale
Lockyer already was counting on heavy demand for the debt from individual investors looking for a place to stash their cash for the next eight to nine months. The ratings from Moody’s and S&P could lower the interest rate the state will pay on the securities, known as revenue anticipat...
Tuesday, Sep 1
California sets short-term debt sale for Sept. 21-23
California’s planned sale of up to $10.5 billion in short-term notes is scheduled for the week of Sept. 21, Treasurer Bill Lockyer’s office said today. The debt, known as revenue anticipation notes, or RANs, will bridge the gap between near-term...
Tuesday, Aug 25
No sign of bond vigilantes, despite soaring U.S. deficit estimates
The government is on track to run a deficit of $1.58 trillion in the current fiscal year, the White House Office of Management and Budget said today. That is $262 billion less than previously forecast, mainly because of smaller-than-expected outlays for the financial-system rescue.
Thursday, Aug 6
Time for central banks to step away -- or step up?
Likewise, the U.S. Fed is expected to end its purchases of Treasury bonds. The Bank of England showed today that it knows how to keep stock and bond market rallies going. The central bank surprised markets by boosting plans to buy British government bonds for its own account -- a direct attempt...
Monday, Jul 13
Jittery investors bet slide in Treasury yields isn't over
We're back to a familiar game in the U.S. Treasury bond market: How low can rates go? We're back to a familiar game in the U.S. Treasury bond market: How low can rates go? As pessimism about the domestic economy has deepened in the last few weeks, the Treasury market has been the best indicator of...
Friday, Jul 10
Don't tell Sacramento, but state's bonds lure buyers again
Investors' appetite for California municipal bonds has improved noticeably in the last few days, driving down market yields on the securities. It also has helped the muni market that U.S. Treasury bond yields have tumbled in recent weeks. Tom Petruno
Sunday, Jul 5
Judge OK's U.S. plan to expedite sale of GM assets
Under the terms of the deal, the U.S. will get 60% of the new GM in return for its $50 billion in bailout loans. The Canadian government will get 11.7% for the loans it has extended to the company. A United Auto Workers fund will get 17.5% and bondholders and other creditors will share the remainin...
Thursday, Jul 2
Wall Street awaits California's short-term borrowing plans
Once California produces a fiscal 2010 budget more or less in balance, Wall Street has been expecting that the state would come looking for short-term financing to bridge the gap between current cash needs and future tax revenue. Tom Petruno Photo: State Treasurer Bill Lockyer
Wednesday, Jun 24
SEC proposes rule changes to boost money fund safety
SEC commissioners today proposed that funds serving individual investors would have to hold at least 5% of their assets in cash, Treasury securities or other investments that could be sold in one day. At least 15% of assets would have to be in securities that could be sold within a week.
Thursday, Jun 18
Smuggled $134 billion in T-bonds are fakes, U.S. says
Speculation about the Italian smuggling case involving $134 billion in purported U.S. Treasury bonds may have been fun while it lasted, but the Treasury Department says today the bonds are bogus. They’re obvious fakes," said Steve Meyerhardt, a spokesman for the Treasury's Bureau of P...
Wednesday, Jun 17
Case of $134-billion T-bond bust fuels conspiracy theories
For your entertainment, Bloomberg News columnist William Pesek lets his imagination run wild about the strange case of two Japanese men who were allegedly trying to smuggle $134 billion in U.S. Treasury bonds into Switzerland last week: Tom Petruno
Report: Lax oversight allowed Downey Savings' loan binge
The Office of Thrift Supervision, the Treasury arm that regulates S&Ls, began warning Downey management in 2002 about its heavy issuance of pay-option adjustable-rate mortgages but failed to rein in the practice, the report said.
Tuesday, Jun 16
State tries to reassure bondholders after S&P sounds alarm
California Treasurer Bill Lockyer has insisted all through Sacramento's latest budget crisis that he would never allow the state to renege on what it owes bondholders. Tom Petruno Photo: California Treasurer Bill Lockyer. Credit: University of California
T-bond yields fall for a fourth day; mortgage rates follow
Treasury bond yields had been rising for most of the spring as increasingly optimistic investors found better ideas for their money, including stocks. Yields spiked last week as the government sold $65 billion more in bonds to finance the federal deficit, leaving the market awash in sec...
Wednesday, Jun 10
Muni bond market roiled as investors demand higher yields
The muni market’s sudden troubles, after a strong rally for much of the spring, in part reflect the surge in U.S. Treasury bond rates: As Treasury yields rise they’re putting upward pressure on other interest rates. The whole muni market has gotten hurt, but California is leading the parade...
Tuesday, Jun 2
California muni bond yields jump as budget crisis sinks in
Market yields on the state's outstanding general obligation bonds have jumped in the last week, reflecting falling prices for the securities as buyers have backed away. The muni market sell-off has been fueled in part by a jump in yields on U.S. Treasury securities, amid the federal govern...
Tuesday, May 26
Pyongyang's missiles might help U.S. sell some bonds
Overseas Monday and today, a modest rebound in the dollar -- which has been dumped along with Treasuries in recent weeks -- was a hopeful sign for the government bond market. Photo: The Treasury building in Washington. Credit: Karen Bleier / AFP Getty Images
Tuesday, May 19
Allstate tells Treasury 'thanks, but no thanks' on TARP cash
Just last week, after months of industry lobbying, the government approved six major life insurance companies for capital infusions under the Troubled Asset Relief Program. The crash in stock and bond markets (other than U.S. government bonds) from September to March ravaged insurers’...
Monday, May 18
U.S. keeps California waiting on plea for debt backstop
Treasury Secretary Timothy F. Geithner told Bloomberg News today that the administration was in contact with California and other state and local governments facing budget issues. Photo: The State Capitol. Credit: Robert Durell / Los Angeles Times
Wednesday, May 13
California makes pitch to White House for debt guarantee
California Treasurer Bill Lockyer made his case to White House and Treasury officials on Monday for what would be an unprecedented federal guarantee of the state’s huge upcoming sale of short-term notes. Photo: California Treasurer Bill Lockyer
Obama to detail regulation plans for derivative securities
The Obama administration is expected today to announce new efforts to regulate the massive market for credit-default swaps and other derivative securities. Treasury Secretary Timothy F. Geithner plans a press briefing at 1 p.m. PDT. The administration plans "to detail...
Saturday, May 2
Returns on inflation-adjusted savings bonds plunge to zero
The U.S. Treasury now is offering zero incentive -- literally -- to potential new buyers of Series I U.S. Savings Bonds, which earn returns adjusted for the inflation rate. Wondering about the merits of I bonds versus Treasury Inflation-Protected Securities (TIPS)? See this piece on the Mo...
Monday, Apr 27
Flu fears hit Mexican markets, but global reaction is muted
Likewise, U.S. Treasury bond yields are only a bit lower, and gold futures are off $3.60 to $910.50 an ounce in New York. Continental Airlines was down $1.42, or 11%, to $11.83. American parent AMR was off 57 cents, or 10.5%, to $4.85; Delta Air Lines was down $1, or 12.7%, to $6.88.
Friday, Apr 24
Savers hit again as short-term interest rates resume slide
In the financial-market panic of late last year, interest rates on short-term U.S. Treasury bills dived close to zero as investors competed madly to buy them, desperate for a safe hiding place. As Bloomberg News notes in this story, China ramped-up buying of T-bills in February while selli...
Thursday, Apr 23
Did California overpay in bond deal?
California Treasurer Bill Lockyer sold the 25- and 30-year taxable municipal bonds under the federal government’s new Build America Bonds plan. The program provides for the U.S. Treasury to pick up 35% of the interest cost on the securities, as a way to help state and local governments fund...
Tuesday, Apr 21
Citigroup CEO tells investors they own a 'great opportunity'
When Chairman Richard Parsons recognized the five departing members of the board, who include ex-chairman Win Bischoff and former U.S. Treasury Secretary Robert Rubin, one man from the audience yelled out: "Thank God you've gone!"
Friday, Apr 17
Small investors won't get preference in state bond sale
The state is issuing taxable bonds, rather than normal tax-exempt securities, because some of the bonds will be sold under the federal government’s Build America Bonds plan. The program allows states and other muni issuers to sell taxable bonds to fund infrastructure projects and have...
Wednesday, Apr 15
U.S. flip-flops on labeling China a currency 'manipulator'
Upon further review, as they say in the NFL, Treasury Secretary Timothy F. Geithner has decided that China doesn’t manipulate its currency for trade purposes. Photo: Treasury Secretary Timothy F. Geithner. Credit: Jay Mallin / Bloomberg News
Monday, Apr 13
Goldman plans stock sale -- and an exit from U.S. bailout
At Goldman Sachs Group, the U.S. Treasury became one managing director too many. Goldman Chairman Lloyd Blankfein had made clear in recent weeks that he wanted out of the government partnership necessitated by the Treasury’s TARP investment.
Thursday, Apr 9
Wells Fargo sticks it to 'shorts' who bet against the bank
And in a "highlights" section of the release, Wells says it has extended "more than $225 billion of credit . . . to U.S. taxpayers since early last October, nine times the amount received from U.S. taxpayers through the U.S. Treasury’s Capital Purchase Program investment."
Monday, Apr 6
California plans big bond sale, with U.S. taxpayers' help
Under the Build America Bonds program, states and other municipal issuers can choose to sell taxable bonds for public-works projects and have the federal government pick up 35% of the annual interest expense on the securities. Photo: California Treasurer Bill Lockyer
Tuesday, Mar 31
Surprise: Your portfolio may have some winners this year
By contrast, the big bond winners of the fourth quarter -- U.S. Treasury issues -- were losers in the first quarter, as some investors bailed out in the face of record low yields. Funds that own long-term U.S. government bonds sank 8% in the quarter, on average, as a rebound in market yields on th...
Wednesday, Mar 25
Bond investors show who's boss on long-term rates
In Britain, the government failed to find enough buyers for an offering of $2.55 billion in 40-year bonds. The U.S. Treasury sale of five-year notes attracted plenty of bids -- $69 billion for the $34 billion in notes offered -- but the higher-than-expected yield that investors demanded has...
Friday, Mar 20
High yields in California bond sale could tempt investors
Treasurer Bill Lockyer is actively courting individual investors via print and radio ads for the bonds, which will be sold in maturities of one year to 30 years. The minimum investment is $5,000. When the state sold $5 billion in short-term IOUs last fall, individual investors grabbed 80%...
Fed's policy shift shakes the dollar, but shouldn't crush it
On one hand, China and other foreign owners of U.S. Treasury bonds have a vested interest in the Fed's new gameplan: If it succeeds in pushing bond yields lower, the result will be to boost the value of outstanding Treasuries issued at higher fixed rates. That ought to make foreign investors w...
Wednesday, Mar 18
Long-term interest rates dive on Fed plan to buy T-bonds
The Federal Reserve opted for shock treatment today in its continuing efforts to ease the credit crunch: The central bank said it would buy up to $300 billion of longer-term U.S. Treasury securities for its own portfolio over the next...
Wednesday, Feb 4
Goldman wants to make early repayment of Treasury aid
On the same day that President Obama was outlining salary caps for financial companies that receive additional "exceptional" federal assistance, Goldman Sachs Group was telling investors how much it would like to get out from under the government’s microscope.
Wednesday, Jan 28
Should the Fed start buying Treasury bonds to hack rates?
What’s more, having the Fed as a buyer could keep longer-term Treasury yields from rising in the face of the record sums the government is expected to borrow this year to finance bailouts of the financial system and economy. He also noted that the Fed can justify buying mortgage bonds by arg...
Friday, Jan 16
An old idea is new again: Put toxic loans in one giant bank
The heads of the U.S. Treasury and Federal Deposit Insurance Corp. gave further momentum to the idea of a new government-backed bank to remove toxic assets from lenders’ balance sheets. Instead, Paulson shifted gears and decided to begin injecting government capital into the banks, while...
Wednesday, Jan 14
Report: Bank of America wants more U.S. financial help
Photo: Bank of America CEO Ken Lewis. Credit: Lawrence K. Ho / Los Angeles Times Bank of America Corp. wants more government aid to cushion against expected losses at brokerage Merrill Lynch & Co., which the banking giant bought Jan. 1, the Wall Street Journal is reporting on its website. Th...
Tuesday, Jan 13
Winter thaw: Credit crunch shows more signs of easing
The decline in LIBOR has improved another key indicator of banks’ money costs: the so-called TED spread, which is the difference between three-month LIBOR and the three-month U.S. Treasury bill yield. It’s a quick way to see how much more banks are paying to borrow than the Treasury.
Wednesday, Jan 7
Investors step up for Treasury debt, even as supply surges
The Congressional Budget Office today estimated that the federal deficit will more than double this year, to nearly $1.2 trillion. And that's not counting President-elect Barack Obama's planned stimulus program. Does this make the Treasury nervous? No doubt," he said.
Tuesday, Jan 6
Mood shift on Wall Street: Investors are taking risks again
All of this suggests that some investors are selling Treasuries to buy other securities. It’s a sign that the fear that had been gripping markets since September -- driving many investors into Treasuries as a haven -- is continuing to ease.
Monday, Dec 22
For a day, at least, the U.S. pays up a bit to sell bonds
What’s more, the Fed has said it may begin buying Treasuries for its own portfolio in 2009. That could put more downward pressure on yields. Tom Petruno On the road to borrowing a trillion dollars or more over the next year, the U.S. Treasury is bound to encounter some potholes. It hit a minor one t...
Wednesday, Dec 10
Average money market fund yield falls below 1%
The latest plunge in rates on short-term U.S. Treasury securities helped drag money market mutual fund yields below 1% this week for the first time since 2004. With the crash in Treasury bill yields, the average retail money fund that buys primarily government securities sported an annual...
Tuesday, Nov 18
China tops Japan as No. 1 holder of U.S. Treasury debt
With China’s purchases of T-bills that month, the country surpassed Japan to become the No. 1 owner of U.S. Treasury debt, according to government data reported today on foreign investment in U.S. securities. Photo: Statue of Alexander Hamilton, outside the U.S. Treasury building in Washingt...
Wednesday, Nov 5
Wells to offer $10 billion in stock, half what was expected
Wells, long one of the strongest of the biggest U.S. banks, had said it didn’t need the government’s money, which was in the form of a preferred stock investment that would pay the Treasury 5% a year in dividends. But Treasury Secretary Henry M. Paulson insisted that all the nation’s biggest ba...
Monday, Nov 3
U.S. adds fixed-rate return to new 'I-series' savings bonds
By contrast, the government has made Series EE savings bonds far less attractive than I-bonds or conventional Treasury securities: On Monday, the Treasury cut the annualized fixed rate on newly issued EE bonds to 1.3% from 1.4% on bonds sold in the previous six months.
Thursday, Oct 30
Calling Uncle Sam: Insurers' stocks dive on capital worries
U.S. life insurers reached out to Treasury officials last week in hopes of securing some of the $250 billion set aside to prop up ailing financial companies. Some of the firms asked the government to make participation mandatory because they don't want to identify themselves as needing gov...
Monday, Oct 27
City National, other banks get a boost from U.S. infusions
In return for the capital, the banks will sell the Treasury preferred stock that will pay a 5% annual dividend. They'll also grant the government warrants to buy common stock. The warrants could pay off for taxpayers if the banks thrive and their stocks rise over time.
