Bonds/Interest Rates

The Dow pulled back from the brink to pose a 90 point rally last night driven mostly by M&A activity.

Why isn’t gold rallying at a time of possible financial market crisis?

If the US mortgage crisis precipitates a significant re-rating of risk assets, is that a bad thing or a good thing?

Again the Dow attempted to post a 100 point rally and again it failed. Precious metals, base metals and oil were all trashed overnight.

The sub-prime mortgage scare in February was accompanied by a brief but panicked unwinding of the yen carry trade. Will this happen again in light of Bear Stearns? And what would it mean for the Aussie dollar and the stock market?

The Dow suffered a 136 point turnaround last night as renewed vigour was met by ongoing mortgage market concerns.

There was no rate rise from China this weekend but a Fed decision is pending on Thursday.

The Dow fell 185 points on Friday as Bear Stearns activated a US$3.2bn bail-out and the Democrats declared war on the rich.

China has relaxed its foreign investment rules once more, and ticked off the IMF. And there may be a rate rise this weekend.

The biggest US IPO in five years closed after market last night as Blackstone raised US$4.13bn. Some comforting economic data saw Wall Street rise against higher bond yields.