Net issuance of bonds into the U.S. market in Q1 2006 surpassed prior records, forcing bond prices to fall and rates to rise. Total, annualized net sales for corporate and foreign bonds, agencies, treasuries and municipal bonds reached $2.2 trillion, 70% higher than bond issuance in 2005. There are several reasons for this record level of bond […]

The excess of US imports over exports continued to provide dollars to the rest of the world, which were invested in the US bond market. The graph shows that foreign investments flowed into the market for US fixed income securities in Q1 2006, at a rate 25% greater than in 2005. (See Table F107, […]

According to the Bureau of Economic Analysis, “total January exports of $114.4 billion and imports of $182.9 billion resulted in a goods and services deficit of $68.5 billion. Total 2005 exports of $1,272.2 billion and imports of $1,995.8 billion resulted in a goods and services deficit of $723.6 billion.” The January trade deficit, annualized, represents a […]