Bond ETFs Turn 10…Patriot Coal…Muni’s Prove Mighty…and More!

July 10th, 2012 by

Best of the Bond Market for July 10th, 2012 

CNBC: Video – Fixed Income ETFs Turn 10 - Matt Tucker Predicts Bond ETF volume to grow to $2 Trillion in 10 years.

Junc Bond: Patriot Coal: The Vulture Has Landed - There is a lot to be learned from the Patriot Coal experience. Investors should continue to be diligent in their analysis and not believe this situation is an anomaly for the coal (KOL) industry.

Bloomberg: Munis Prove Mighty Over All Assets For Second Year - U.S. state and local debt is on its way to beating stocks, Treasuries, corporate bonds and commodities for a second straight year when adjusting for volatility, the longest win streak since 2006.

Learn Bonds: The 10 Largest Bond Mutual Funds.  Which One is Right for You? - A look at the 10 largest bond mutual funds by assets, their investment objectives, and the types of investors they are appropriate for.

WSJ: US Treasury Bonds Little Changed After 3 Year Sale –  $21 billion in 10-year bonds Wednesday and $13 billion in 30-year bonds Thursday.  The three-year notes were sold at a yield of 0.366%, basically in line with expectations from dealers and a sign that paltry yields haven’t been a major threat to Treasury sales.

BondSquawk: What do the charts say about the future of the 10 year treasury? - With the yield of the 10-Year at 1.51% according to Trade Monster’s Bond Trading Center coupled with the MACD indicator crossing and turning negative (lower section of chart), we may see a retest of the all-time lows of 1.44%.

Bloomberg: Abolish Tax Free Municipal Bonds - We can reform subsidies for municipal borrowing so that 100 percent of them actually go to municipalities, and so that municipal issuers have access to a broader bond market than one consisting of domestic corporations and wealthy individuals.

Bond Buyer: Obama’s Proposal Would Boost Demand for Municipal Bonds - President Obama’s call for Congress to pass a one-year extension of the Bush tax cuts for families earning $250,000 or less would boost demand for municipal bonds, market participants said Monday.

Bloomberg TV: High Yield Market Pretty Attractive says BlackRock’s Keenan

Data Explorers: Arbitrage driving borrowing of corporate bonds – Investors are seeking to exploit arbitrage opportunities across different corporate bond issuances where they perceive one line to be overpriced relative to related instruments. We see a pronounced increased demand to borrow mispriced lines as investors seek to profit until the yield falls in line with similarly dated listings.

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