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Economy
In reply to the discussion: STOCK MARKET WATCH -- Monday, 24 September 2012 [View all]xchrom
(108,903 posts)28. Fed Recovery Doubts Spur Investor Bid for Treasuries
http://www.bloomberg.com/news/2012-09-24/fed-recovery-doubts-spur-investor-bid-for-treasuries.html
U.S. investors are buying Treasuries at a faster pace than foreigners for the first time since 2010, aiding the government in its efforts to borrow as total public debt outstanding rises above $16 trillion.
Government debt securities held by domestic buyers, excluding the Federal Reserve, rose 10.7 percent in the first seven months of this year to $3.61 trillion, compared with a 6.9 percent increase for countries from China to Germany, according to the latest data available from the Treasury Department and compiled by Bloomberg. Foreign purchases grew 13 percent last year, while U.S. holdings fell 4.6 percent.
Record-low yields are proving no deterrent to U.S. buyers concerned that unprecedented stimulus by the Fed and Chairman Ben S. Bernanke may neither stimulate the economy nor bring down a jobless rate that has exceeded 8 percent since February 2009. The government is dependent on demand for its debt as it seeks to finance a budget deficit poised to exceed $1 trillion for the fourth straight year.
Bonds have stopped being a total-return market, Tom Graff, who manages $3.6 billion of fixed-income assets at Brown Advisory Inc. in Baltimore, said Sept. 7 in a telephone interview. The high degree of uncertainty has caused excess cash to build up among household assets. As long as individuals are seeking safety rather than being return- oriented, then no particular yield is too low, he said.
U.S. investors are buying Treasuries at a faster pace than foreigners for the first time since 2010, aiding the government in its efforts to borrow as total public debt outstanding rises above $16 trillion.
Government debt securities held by domestic buyers, excluding the Federal Reserve, rose 10.7 percent in the first seven months of this year to $3.61 trillion, compared with a 6.9 percent increase for countries from China to Germany, according to the latest data available from the Treasury Department and compiled by Bloomberg. Foreign purchases grew 13 percent last year, while U.S. holdings fell 4.6 percent.
Record-low yields are proving no deterrent to U.S. buyers concerned that unprecedented stimulus by the Fed and Chairman Ben S. Bernanke may neither stimulate the economy nor bring down a jobless rate that has exceeded 8 percent since February 2009. The government is dependent on demand for its debt as it seeks to finance a budget deficit poised to exceed $1 trillion for the fourth straight year.
Bonds have stopped being a total-return market, Tom Graff, who manages $3.6 billion of fixed-income assets at Brown Advisory Inc. in Baltimore, said Sept. 7 in a telephone interview. The high degree of uncertainty has caused excess cash to build up among household assets. As long as individuals are seeking safety rather than being return- oriented, then no particular yield is too low, he said.
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Feast of Fools How US Democracy Became the Property of a Commercial Oligarchy By Lewis H. Lapham
Demeter
Sep 2012
#3
Somebody dumped a lot of paper (ETF's) to depress the gold and silver markets.
westerebus
Sep 2012
#31