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Do you understand the importance of this?

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.

Answer Question

Asked by grlygrlz2 at 8:27 AM on Mar. 26, 2010 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (36)
  • 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

  • No I don't. What does it mean?

    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

  • Those of you with your head in the sand had better come up for air. High inflation is around the corner and it will affect everyone. That is the price to pay when you have a Dem in office. If you want to own an house you had better buy that house this summer because rates could rise to as much as 20% as in the Carter years. thats just one example. As for plain old inflation, that gallon of milk you pay $2.50 for will likely cost $4.00. Your now lowered standard of living will be sinking lower.

    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

  • OMG, already this morning... Has the Xanax worn off already.

    KIDS, it's nothing new. Welcome to America. You youngins think this all started with Obama.. YOU wake up. It's been long coming and it's nothing new. Really? Remember a few years ago when gas was well up to 4.00 a gallon? Seriously, where was Obama then?

    You always need someone to blame. Here's the deal... It's been in the making. You are now seeing the effects of poorly managed government from years of time being built up.

    Yes, sorry, this generation is seeing it... but face it and live up to it... don't BLAME. It's no one's fault, it's years of people on welfare and living above their means.


    Answer by Anonymous at 9:13 AM on Mar. 26, 2010

  • I feel dumb but I still don't get it. If the data on the economy is positive why does that mean inflation and high interest?

    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

  • Is that your way of giving the current president a free pass 9:13? Has he not helped make things worse? Is he the golden child in your eye? As for using pa as a lifestyle well you know had it been controlled and kept to what it was originally meant for..or maybe never implemented at all that would not be a problem.NOW we have people on the hill who have put government in charge of more ..just what we need lol

    oh and nobody mentioned obama before you. delete your answer

    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

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