Reuters Credit Analyst Ed Rombach says U.S. deflation is still a serious threat, despite recent warnings of a return of stagflation.

SocGen and Credit Argicole have bigger problems than Wednesday’s Moody’s debt downgrade, says Reuters analysts Ed Rombach and Mike Tarsala.

Reuters Credit Analyst Ed Rombach says maybe it’s time for the Fed to bypass the banks and lend directly to borrowers, since banks are reluctant to lend, as was the case in the 1930s.

The FOMC’s policy tools include “adjustments to securities holdings” and have spawned buzz about a Fed policy action from the 1960s known as “Operation Twist,” says Reuters Credit Analyst Ed Rombach.

Reuters Credit Analyst Ed Rombach says if ongoing debate over the U.S. debt ceiling result in a downgrade of its sovereign debt, that could cause Treasury yields to fall.

Ed Rombach says sell U.S. sovereign CDS and use the proceeds to buy puts on the 5- year Treasury future on the expectation that the coincidental end of QE2 and debt ceiling showdown drive Treasury prices lower.

One guide of Fed policy suggest rates should rise after the end of QE2. Reuters Credit Analyst Ed Rombach takes a closer look and offers a trade idea.

U.S. 10-year Treasury yields are likely headed below 2.90 percent as the economy weakens and hedge funds short the medium bond, says Reuters Credit Analyst Ed Rombach.

Supply concerns and weakness in commodities may mean the sector’s CDS outperformance will end, says Reuters Credit Analyts Ed Rombach

Reuters Credit Analyst Ed Rombach says fiscal austerity and rising prices may keep U.S. Treasury yields down even after QE2 ends and Bill Gross’ net short position in U.S. Treasuries is wrong.