Wednesday, June 08, 2011

Lack of buyers may force Treasury to boost interest rates

Lack of buyers may force Treasury to boost interest rates - Washington Times
"Though a significant rise in interest rates could be toxic for a softening U.S. economy, the Federal Reserve has said it will end its program of purchasing $600 billion in U.S. Treasury bonds as planned on June 30.
The Fed is estimated to have bought about 85 percent of Treasury’s securities offerings in the past eight months."

85%!!!!!!!!
What the heck is going to happen when 85% of the demand simply....disappears?
Interest rates will finally track the real inflation!

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