Skip to content

Bonds and Obama-The Show That Never Ends

July 4, 2009

The Treasury recently posted a bond offering $3 billion more than expected. The difference in the size of these auctions is a lot more significant than merely $3 billion Treasury notes.

Guess what? It looks like tax revenues are less than expected, while spending is much more  than expected.

What does the market think?

Interest rates have backed up by about 15 basis points. The 10yr note is close to near a 4% level. 

 Wait, mortgage rates will move soon above 6% and stay above that level as well.

Barack’s bond  bubble is bursting under the heavy weight of all this supply and the economy faces a tougher uphill fight to stablize.

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: