Skip to comments.Debt Fears Send Rates Up
Posted on 03/26/2010 6:39:32 AM PDT by throwback
A sudden drop-off in investor demand for U.S. Treasury notes is raising questions about whether interest rates will finally begin a march highera climb that would jack up the government's borrowing costs and spell trouble for the fragile housing market.
For months, investors have focused their attention on the debt crisis in Europe, but there are signs the spotlight is turning to the ability of the U.S. to finance its own budget deficit.
This week, some investors turned up their noses at three big U.S. Treasury offerings. Demand was weak for a $44 billion 2-year note auction on Tuesday, a ...
(Excerpt) Read more at online.wsj.com ...
You can read all wall street journal articles by just typing the title into google and clicking on the result...
Maybe “I would gladly pay you Tuesday for a hamburger today” isn’t going to cut it anymore. A lot of us learned that lesson as kids.
Thanks. I didn’t know that.
The Fed has only about $6.075 billion left in their MBS QE program. The QE purchases of MBS will be done by the end of next week.
Then we’ll see what happens in the mortgage market - I’d expect a rise in rates of at least 10 to 15 bp in the next month.
Unexpectedly low demand for low interest Treasuries?
Who could have foreseen that huge levels of debt lead to higher interest rates and inflation?
Wait, I’m told there is no inflation. Gas, movie prices, taxes, medical care, insurance, bank fees, and the host of other things we actually buy to the contrary.
And the wall come a tumblin’ down, and the wall come a tumblin’ down...
Never quite understood that. Always hear the report, “Inflation held steady today after energy and food were taken out...”
Wait, tell me, who didn’t buy gas or food last month??
Thanks for that nugget.
I think the walls are going to have come down before we see a major change in how this nation’s citizens think. If we actually win this debate on health care and we keep falling half the people (o supporters) will think it’s because we killed health care and they’ll win the 2012 election. Then everything will go right back to where it was.
Yes, we’re going to have to be right up to the edge. But will we be able to pull back and save ourselves or will it be too far and too late.
Get ready folks. The end-game is nearing.