Traders returned from vacation this week and reminisced about the Labor Day vacation. It appears as though everyone is waiting to read Tuesday’s FOMC statement.

See the news articles below for the most interesting part of the week, which should tell you that we are near a top in bond markets globally.

The State Bank of India raised its repo rate by 25 basis points to 6% and reverse repo rate 50 basis points to 5%.

Bangladesh buy 10 tonnes of IMF Gold. Total Gold sales through July is 88.3 tonnes.

In January, the IMF stated its intention to sell the remaining 191.3 tonnes of Gold on its balance sheet. This would mean that as of the end of July, the IMF was selling approximately 18 tonnes of Gold per month into the market. This would put us on course to complete the Gold sales in January of next year.

China issued 50 year bonds this week.

Thailand is considering a 50 year bond issue for later this year/early 2011.

As the quarter draws to a close I will start talking about sectors and themes which I believe will outperform as 2010 draws to a close.

Just because I am down on banking and housing stocks does not mean I am down on the financial sector. There are a number of attractive stocks and areas which should outperform in the coming months.

Next Week

Monday – Japan Leading Economic Indicators

Tuesday – FOMC Meeting,

Wednesday – Bank of England minutes released

Thursday – US Leading Economic Indicators

Friday – US Durable Goods

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