China's View

[chiang mai]

Read the article, it suggests much that is overdue:

http://www.telegraph.co.uk/finance/newsbys...ive-easing.html

[lannarebirth]

Read the article, it suggests much that is overdue:

http://www.telegraph.co.uk/finance/newsbys...ive-easing.html

It's a tough racket. Treasury gaming the Chinese, Fed gaming the Treasury, and PIMCO gaming the Fed. Chinese always get vocal near a CIT I've noted:

[midas]

Read the article, it suggests much that is overdue:

http://www.telegraph.co.uk/finance/newsbys...ive-easing.html

And when you see you see the increase in momentum you can understand their concern........... Would anyone care to

guess when higher interest rates will start to kick in ?

U.S. Treasury Bond Debt Bubble Bursting!

This week alone, Treasury sold a record $26 billion in seven-year notes, a record $35 billion in five-year notes, and $40 billion of two-year notes. Next week, we’ll get a record $71 billion in longer-term debt issuance.

Total net borrowing needs for the second quarter are now up to $361 billion. That’s up 27-fold from $13 billion a year earlier and more than double the previous estimate of $165 billion.

We just learned the Treasury will start selling 30-year bonds every month, as opposed to eight times a year. And speculation is running rampant that the U.S. will soon start auctioning off 50-year bonds! All this issuance is needed to fund a federal budget deficit that’s projected to hit at least $1.75 trillion this year and $1.2 trillion in fiscal 2010.

The average long-term government bond fund has already lost 11.2 percent in value this year, according to Morningstar, and we still have eight months to go!

http://www.marketoracle.co.uk/Article10383.html

Edited May 7, 2009 by midas

[chiang mai]

Read the article, it suggests much that is overdue:

http://www.telegraph.co.uk/finance/newsbys...ive-easing.html

And when you see you see the increase in momentum you can understand their concern........... Would anyone care to

guess when higher interest rates will start to kick in ?

U.S. Treasury Bond Debt Bubble Bursting!

This week alone, Treasury sold a record $26 billion in seven-year notes, a record $35 billion in five-year notes, and $40 billion of two-year notes. Next week, we’ll get a record $71 billion in longer-term debt issuance.

Total net borrowing needs for the second quarter are now up to $361 billion. That’s up 27-fold from $13 billion a year earlier and more than double the previous estimate of $165 billion.

We just learned the Treasury will start selling 30-year bonds every month, as opposed to eight times a year. And speculation is running rampant that the U.S. will soon start auctioning off 50-year bonds! All this issuance is needed to fund a federal budget deficit that’s projected to hit at least $1.75 trillion this year and $1.2 trillion in fiscal 2010.

The average long-term government bond fund has already lost 11.2 percent in value this year, according to Morningstar, and we still have eight months to go!

http://www.marketoracle.co.uk/Article10383.html

They already have, at least one UK bank is now offering 4% on deposits, that on the back of a 0.50% base rate, have to fix for two years however so that speaks volumes - 3.5% on top of base and no derivatives involved, what's the world coming to.