Italian bond rates had already been falling before ECB President Mario Draghi announced the conditional bond buying plans. That reflected the substantial progress Italian Prime Minister Mario Monti s government had already made.

I want you to buy me a government bond.

Mr. Bond! Mr. Bond! Mr. Bond!

Bond. James Bond.

Bond. James Bond.

Bond? James Bond?

With tax revenue collapsing and expenditure ballooning, the government found itself running such large deficits that the markets were spooked government bond prices collapsed, interest rates soared, and the country found itself unable to finance its deficit. Where were the rock bottom interest rates that are supposed to characterize periods of weak growth and high unemployment?

In fact, the 30 year inflation indexed US government bond yield as of May 4 was only 0.86 , compared with more than 4 in the year 2000. Such rates are similarly low today in many countries.

(b) Official rates, determined by government authorities

My name is Bond, Jamal Bond.

James Bond. Oh, yes, Mr Bond.

In 1994, rising short term rates caused increases in long term rates and declines in long term bond prices that were at least double what standard models at the time were predicting. Moreover, interest rates in the world's peripheral, developing economies rose far more than rates in the advanced industrial core.

That is likely to be a money losing strategy unless an investor is sagacious or lucky enough to sell the bond before interest rates rise. If not, the loss in the price of the bond would more than wipe out the extra interest that he earned, even if rates remain unchanged for five years.

Bond

Bond

Bond.

MAN ON MEGAPHONE Ahoy, Mr. Bond. Ahoy, Mr. Bond.

Third, Germany s long term interest rates would be unaffected, because Germany would neither be guaranteeing the debt conversion scheme nor backing the ECB s bond issues.

LONDON In 2011, the Nobel laureate economist Paul Krugman characterized conservative discourse on budget deficits in terms of bond vigilantes and the confidence fairy. Unless governments cut their deficits, the bond vigilantes will put the screws to them by forcing up interest rates.

One could emulate J.P. Morgan, whose standard response to questions about stock prices, bond prices, and interest rates was to say simply, The market will fluctuate.

Bond offering

Bond Labels

Bond length

Bond number

Bond order

Bond Radius

Bond Order

Bond Length

Bond Angle

Bond Length

Draw Bond

Add Bond

Delete Bond

Bond Paper

Bond 5,000.

Mr. Bond.

James Bond.

Mr Bond.

Mr Bond?

James Bond?

James Bond.

James Bond!

Bond has arrived. Bond is here. All staff on the alert.

Landing fees and ground handling charges Medical services at government rates

The government can borrow all it wants from the bond markets at near zero interest rates. Outsourcing such borrowing power to a National Investment Bank is merely a way to signal that any additional borrowing will be used for investment, not for current spending.