THE ASTUTE BLOGGERS: SOME PROOF THAT THE ECONOMY HAS BOTTOMED OUT AND IS HEADING UP...

Wednesday, December 31, 2008

SOME PROOF THAT THE ECONOMY HAS BOTTOMED OUT AND IS HEADING UP...

CNNMONEY: BONDS ARE STEADY: Bonds hold tight in thin trading

With little money going in or out of Treasurys to close the year, bonds make very small movements despite two dour economic reports.Treasurys were little changed Tuesday, even after more dour reports on housing and consumer confidence.
Bonds have traded in a close range for the past two weeks, with very subtle changes brought on by ultra-thin trading heading into the last days of the year.
"With year-end trading, a lot of people are staying on the sidelines," said Peter Cardillo, chief market strategist at Avalon Partners.
"Bonds have been strong, so it will take a lot in the market to change them significantly," he added.

THE FLIGHT HAS PANICKED ENDED...

CNNMONEY: Jobless claims down sharply

Filings ease in Christmas week to below the 500,000 level, backing away from 26-year high.
The number of Americans filing for first-time unemployment benefits fell sharply last week, according to a government report released Wednesday, as a year filled with layoffs and income cuts draws to a close.
The Labor Department said initial filings for state jobless benefits fell to 492,000 for the week ended Dec. 27, a decline of 94,000 from the 26-year high of 586,000 claims a week earlier.

BLOOMBERG:Libor at Four-Year Low as Central Banks Offer Cash, Cut Rates

Dec. 31 (Bloomberg) -- The cost of borrowing in dollars in London for three months dropped for the third day, ending 2008 at the lowest level in more than four years as policy makers provide cash and lower interest rates.

The London interbank offered rate, or Libor, for such loans fell one basis point to 143 basis points, the least since June 8, 2004, according to British Bankers’ Association data. Singapore’s comparable rate for U.S. funds slipped one basis point today to 1.44 percent, the lowest level since June 2004. The Libor-OIS spread, a measure of cash scarcity, narrowed.

“There’s no reason for the easing in rates not to continue,” said David Keeble, head of fixed-income strategy in London at Calyon, the investment-banking unit of Credit Agricole SA. “The banking sector is more stable and cash is coming into the system.”