Market better and steeper than late NY levels - at this point 2y -3bp, 10y -.8bp from 3pm levels, market having gone out even weaker towards days end.  No catalyst news-wise to inspire it - more a case of lower levels attracting buyer from the asian region, good volume going thru. Market was bid up from the outset in Tokyo, &  continued to push higher early London as dealers cover paper sold. We had decent buy in 2y from Japan real money, CB buy 5y. Flows a little more 2 way in London - some Asian real money sell 3-5y agens, Asian real money buy interest below, same buy 5y agens. Market holding up pretty well at the highs, not giving up  any ground….dealers not taking much risk, probably need states in for things to be a little more 2 way. Equities popping higher early London morning, not affecting bid in fixed income too much.

NOTE: The views expressed are not of Bonds.com but of the unaffiliated author. Bonds.com makes no claim to and regarding the accuracy, correctness or completeness of the views expressed.

Posted by bondsblog as Trader News at 7:46 AM EDT

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Wisdom on a coffee cup! I keep seeing pearls of pansophy on Starbucks’ cups, such as “The Way I See It #204″ an erudition by novelist Paul Coelho. Said he: “Remember your dreams and fight for them. You must know what you want from life. There is just one thing that makes your dream become impossible: the fear of failure. Never forget your Personal Legend. Never forget your dreams. Your silent heart will guide you. Be silent now. It is the possibility of a dream that makes life interesting. . . You can choose between being a victim of destiny or an adventurer who is fighting for something important.

At a recent Atlanta conference on issues of aging and family caregiving, a woman sat at my table, along with her mother. Wisely attending as daughter and parent, they were there to learn more about the problems of old age impairments and available resources. Planning ahead is critical to controlling your own future.”

The daughter is an avid reader of these columns and she asked two interesting questions. She wondered, “What and when is ‘old age’? How does this impact financial planning?”

My best answer was another question, attributed to Satchel Paige: “How old would you be if you didn’t know how old you are?”

In the 1960s, age was defined as “not trusting anyone over age 30.” The Weatherman radical-chic types finally figured out what was “blowin’ in the wind” and age is being redefined once again. Trend spotter and futurist Faith Popcorn predicts: “Today’s Baby Boomers define ‘old age’ as starting at 80―three years after the average person is dead. Tomorrow, Boomers won’t acknowledge ‘old’ at all. Terms like ‘elderly’ and ‘mature’ will become insults, tantamount to harassment. Boomers will demand recognition of their special needs but not to be treated like ‘special people;’ imagine large, stylishly iconic but easy-to-read buttons gracing luxury cars like the Infinity and BMW. Even death will get a make-over: The generation that shuns pity will transform hospices into hot-spots as funerals become ‘going-away parties’ worthy of a lasting legacy.” (Arizona Reporter, 2006).

Financially, we mark age in different ways. At age 40 you are protected against age discrimination under federal law. At age 59½, you may spend IRA money with no penalty; starting at age 70½ you have to take at least minimum distributions. At 62, you may take “early retirement” benefits from Social Security. Full retirement phases in as late as 67 depending on your birth year. Medicare coverage kicks in at 65. Golden wedding anniversaries generally are celebrated between ages 70 – 80. But when is old?

Researchers at Ohio State University note that gerontologists lean toward distinctions such as “young-old” (ages 55-74), and “old-old” (age 75+). Some prefer to insert a “middle- old” category to push “old-old” further out.
“Aging is not a disease,” Aging is a series of processes that begin at conception and carry through birth to the end of the life cycle. Age-related changes vary greatly between individuals. Show up at a 30th, 40th, or 50th high school reunion and you will see stark differences, plastic surgery not withstanding! All five key senses―hearing, vision, touch, taste, and smell―can undergo alterations as early as the mid-40s and early 50s.

Early in my business career I worked for a man who said, “Attitude is more important than facts!” Chronological age may differ substantially from functional age and mental age. Ohio State researchers note that “place of birth, place of residence, marital status, diet, education, heredity, physical fitness and mental health, family size and composition” have significant impact on aging. Healthy living (increased exercise, not smoking, preventative medicine) is a carryover from the boomer youth culture.

The effusive Mr. Paige has said, “Age is a question of mind over matter. If you don’t mind, it doesn’t matter.” Stress is a killer. Exercise, more sleep, and a sense of “acceptance” are antidotes. That’s where money comes in.

Start early to build a well-financed retirement. Shoot to replace 100% of pre-retirement cash flow so you can enjoy the “young-old phase” (travel, grandchildren, spiritual pursuits, even work that you enjoy) and pay for the “old-old phase” (long term care, caregiving, hired help, last expenses). Understand the importance of insurance planning (life, health, disability, long-term care, liability coverage) in creating security for yourself and survivors. People with “money worries” age quickly.

We need to retire the word “re-tired” as an age marker. “Re-tired” means “the act of being ‘tired’ over and over again.” On 1/13/07, the AJC quoted Atlanta real estate guru Jenny Pruitt on her “retirement.” Ms. Pruitt, who gives her age as “mid-60s,” said, “I don’t want to use the word retired!” She is leaving the real estate firm she founded to focus on a book she is writing, making speeches, and civic work. “I’m just going to get fired up again,” she proclaims.

As Paul Coelho opines, we should never forget our Personal Legend . . . our dreams. We can choose to be a “victim of destiny.” Or like Jenny Pruitt we can be “re-fired” instead of re-tired, electing to be “an adventurer who is fighting for something important.” Coelho is talking about “purpose,” the wellspring of a youthful outlook.

As Rick Warren aptly put it, a “purpose-driven-life” grounded in spirituality is the “fountainhead of youth,” powering successful life transitions as we progress in our earthly journey.

I have traveled to Asia a number of times, most recently to China in 2005. It was a long journey, but a fabulous trip. The distance from Atlanta to Shanghai, via Los Angeles and Seoul, South Korea, is 7906 air miles. Going out, one is excited about the upcoming vacation. Anticipation makes the trip seem relatively short. The return flight covers the same distance, but seems far longer. But one is always glad to reach home.

Life’s journey is like that. If your future is always bigger than your past, anticipation, hope, and a sense of adventure will sustain each trek. End of journey issues can be a bit rough. But I want to say to God on some glorious day, “Thanks for the trip. The end might not have been easy, but, Lord, I am glad to be home.” That is the Ultimate Homecoming and the secret to life. Accept that concept, and you never will be old!

Lewis Walker, CFP®, CIMC®, CRC®, is a financial planner and investment consultant with offices in the Forum on Peachtree Parkway in Peachtree Corners; 770/441-2603, lewisw@theinvestmentcoach.com. Lewis has been granted the Parent Care Specialist (PCS®) designation by The Parent Care Solution, LLC, Charlotte, NC.

Posted by bondsblog as Financial Planning with Lewis Walker, Trader News at 7:14 AM EDT

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* 3-yr auction stops at 4.574% vs. 4.565% 1:00 pm rate
* Bid-to-cover is  2.39, vs. 2.34 average of last five.
* Indirects take 18.9%, vs.  25.5% norm of last five 3-year auctions — LIGHTEST  SINCE AUG ‘03.
* Dealer buy 80.9%, vs. 73.3% average of last five.
* HIT RATIOS — dealers take 36.5% of what they bid for, average is 36.9%.
* Indirects get 86.9% of what they bid for, vs. 85% norm.
* Issue is trading 4.574%.  We are not surprised the market is a little softer on these results — not an impressive indirect showing.
* Flows ahead of the auction were modest — at about 34% of the 10-day MA.  We saw interest from dealers in the 3-year roll, dealers buying 2s and modest dealer selling of 10s.  We also had some foreign hedge funds selling of 3s and real money selling of 30s.  Since the Auction, we have seen real money interest in 3s, dealers buying 10s and little else.

Posted by bondsblog as Trader News at 11:27 AM EDT

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