Prices of U.S. government debt fell on Thursday as demand for Treasuries waned for the third day in a row.
"The auction went terribly," said Tom Simons, money market economist at Jefferies & Co. "It appears the foreign bid was on the sidelines again"...
The price of insuring U.S. debt against default rose. Credit-default swap spreads grew to 40 basis points, while the yield on U.S. 30-year bonds reached a nine-month high.
The huge wave of new government debt supply is affecting the price of Treasuries, while a more-or-less steady stream of positive data on the U.S. economy adds to expectations of higher inflation and interest rate increases.
Answer by grlygrlz2 at 8:31 AM on Mar. 26, 2010
Answer by Anonymous at 8:47 AM on Mar. 26, 2010
Higher inflation and interest rate increases.
Answer by QuinnMae at 8:54 AM on Mar. 26, 2010
Answer by itsmesteph11 at 9:09 AM on Mar. 26, 2010
Less countries want to buy into the spending our Federal Government continues to approve.
higher inflation means the prices of good and services will increase while overall income in the US will go down. Everything from a gallon of milk to utility costs to run your home.
Higher interest rates leads to lower home sales, lower number of business loans and credit given. This leads to less jobs, less demand, and little if any growth and development for the US economy...
Answer by grlygrlz2 at 9:11 AM on Mar. 26, 2010
Answer by Anonymous at 9:13 AM on Mar. 26, 2010
Answer by Anonymous at 9:14 AM on Mar. 26, 2010
How many people really think that when health care passed with nearly a trillion in spending (plus interest) that the Federal Government just hits the PRINT BUTTON at the US mint and Voila, and makes more money!!!
How many people didn't care about the cost, because they wanted to just hand it off to the wealthy or to the next generation?
Do you realize there are NOT enough wealthy people in this nation to afford all of the spending going on in the Federal Government?
Answer by grlygrlz2 at 9:15 AM on Mar. 26, 2010
Answer by tnmomofive at 9:20 AM on Mar. 26, 2010
KIDS, it's nothing new. Welcome to America. You youngins think this all started with Obama..
Other nations are concerned about our over spending... Confidence in the US economy is POOR... They aren't jumpipng to buy our debt. Yet the CURRENT government is doing NOTHING to show they are trying to spend less. In fact, they are introducing more legislation to spend MORE.... What does THAT tell you?
Answer by grlygrlz2 at 9:20 AM on Mar. 26, 2010
Next question overall
(Babies (0-12 months))
Why has my 8 month old been sick every month of his life? He had pneumonia...