---
title: "Commodities & Bonds"
url: https://independentstockanalysis.com/commodities-bonds/
description: "India’s power grid failed for the second day in a row, this time for more than half the country ( BBC News ). Is there much doubt about emerging market…"
published: 2012-07-31
updated: 2012-07-31
---

# Commodities & Bonds

Published 2012-07-31

Posted on

by

J.J. Butler

India’s power grid failed for the second day in a row, this time for more than half the country ([BBC News](http://www.bbc.co.uk/news/world-asia-india-19060279)). Is there much doubt about emerging market infrastructure development, as $80-trillion urban boost for mining projected at [Mining Weekly](http://www.miningweekly.com/article/80-trillion-urban-boost-for-mining-projected-anglo-2012-07-30). I lived in a third world mega city for six months; these pictures do not scratch the surface ([BBC](http://www.bbc.co.uk/news/world-asia-india-19044827)).

The dynamics become more interesting with mining projects are being delayed, as China slowdown hurts BHP at [Bangkok Post](http://www.bangkokpost.com/news/asia/304729/bhp-warns-of-spending-cuts-as-china-cools). Iron ore prices continue to be hit ([FT Alphaville](http://ftalphaville.ft.com/blog/2012/07/31/1101731/about-that-120-iron-ore-floor/)). “A peak may be in sight for commodity prices” from the [Economist](http://www.economist.com/node/21559647).

Crop damage sending agricultural commodity prices to new highs by [Sober Look](http://soberlook.com/2012/07/crop-damage-sending-agricultural.html). Poor policy has 40% of the corn crop turned into ethanol. [NY Times](http://www.nytimes.com/2012/07/31/opinion/corn-for-food-not-fuel.html?_r=2&smid=tw-share)

Are Interest Rates at a Key Inflection Point? [All Star Charts](http://allstarcharts.com/are-interest-rates-at-a-key-inflection-point/)

“Unilever…sold $550 million worth of 5-year notes with a coupon of just 0.85 percent…Texas Instrument has broken a record for the lowest coupon on 3-year debt at just 0.45 percent…” [Business Insider](http://www.businessinsider.com/unilever-record-low-borrowing-cost-2012-7). Teck Resources sold 30 year paper at [5.4%](http://finance.yahoo.com/news/teck-announces-pricing-us-1-223301421.html).

Doug Kass presentation: “my favorite short of the next decade is the U.S. bond market” at [Business Insider](http://www.businessinsider.com/doug-kass-barrons-favorite-short-for-the-next-decade-2012-7?op=1). The distortions continue with Defensive stocks becoming overvalued at [Sober Look](http://soberlook.com/2012/07/defensive-stocks-becoming-overvalued.html).

Interesting macro idea of the day: “In order to avoid a debt spiral, a country must reach nominal GDP growth at least in line with average financing rates.” [Ritholtz](http://www.ritholtz.com/blog/2012/07/fed-meeting-but-ecb-is-now-what-matters/?utm_source=dlvr.it&utm_medium=twitter)