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U.S. 30-year bond auction gets dismal reception

hypocritexposer

Well-known member
* Demand weak at 30-year bond auction

* Stocks, bonds fall after auction

* Rising yields risk higher rates throughout economy (Recasts, adds quotes)

By Burton Frierson

NEW YORK, May 7 (Reuters) - A U.S. government auction of 30-year bonds met a dismal reception on Thursday, driving down bond and stock prices and raising fears the United States may face difficulty financing spending to stimulate the economy.

The $14 billion auction met below-average demand from investors, who forced the government to pay a higher yield. An extended trend of rising yields could force up longer-term interest rates throughout the economy.

"It just does not bode well for interest rates. It's ugly, it's very, very ugly," Hurley added

http://uk.reuters.com/article/marketsNewsUS/idUKN0738200920090507
 

backhoeboogie

Well-known member
hypocritexposer said:
* Demand weak at 30-year bond auction

* Stocks, bonds fall after auction

* Rising yields risk higher rates throughout economy (Recasts, adds quotes)

By Burton Frierson

NEW YORK, May 7 (Reuters) - A U.S. government auction of 30-year bonds met a dismal reception on Thursday, driving down bond and stock prices and raising fears the United States may face difficulty financing spending to stimulate the economy.

The $14 billion auction met below-average demand from investors, who forced the government to pay a higher yield. An extended trend of rising yields could force up longer-term interest rates throughout the economy.

"It just does not bode well for interest rates. It's ugly, it's very, very ugly," Hurley added

http://uk.reuters.com/article/marketsNewsUS/idUKN0738200920090507

Who would be feelling froggy with current rates and the knowledge that Obama is going to push us into high inflation? Aint now way I'd be jumping.

Is the stock market on bottom yet? That is what has me feeling froggy. I jumped out at almost the optimum time
 

hypocritexposer

Well-known member
These are bonds that cover the debt. Other countries have stopped buying them, and that will push up domestic borrowing rates.

They've increased the interest on the Federal credit card, and lowered the limit!

Isn't that what it means?
 

Mike

Well-known member
Weak Treasury auction sends stocks lower(No one wants to loan US money)
Google/AP ^ | 5/7/2009 | Tim Paradis and Sara Lepro



Weak demand at a Treasury bond auction touched off worries in the stock market Thursday about the government's ability to raise funds to fight the recession.

The government had to pay greater interest than expected in a sale of 30-year Treasurys. That is worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans. The higher interest rates also could push up costs for borrowing in areas like mortgages.
 

Sandhusker

Well-known member
hypocritexposer said:
These are bonds that cover the debt. Other countries have stopped buying them, and that will push up domestic borrowing rates.

They've increased the interest on the Federal credit card, and lowered the limit!

Isn't that what it means?

That's about it. Others are getting very wary of being our loan officer, especially when they see us spending it like we've got it. A few months ago, China was even talking about guarantees. When your banker starts mentioning guarantees, it's not a vote of confidence. That was before Hillary went over there to beg them to prop us up - I wonder what she offered as a guarantee.
 

hypocritexposer

Well-known member
My prediction....

There will be a new world currency forced out of this.

China/Saudi Arabia will buy up gold, precious metals, to hedge.

Commodities such as oil, steel will increase in value.

What made the US a superpower, will be diminished, if something doesn't change, and in a hurry.

Other countries are already positioning themselves for the change in power structure.
 

Lonecowboy

Well-known member
Sandhusker said:
hypocritexposer said:
These are bonds that cover the debt. Other countries have stopped buying them, and that will push up domestic borrowing rates.

They've increased the interest on the Federal credit card, and lowered the limit!

Isn't that what it means?

That's about it. Others are getting very wary of being our loan officer, especially when they see us spending it like we've got it. A few months ago, China was even talking about guarantees. When your banker starts mentioning guarantees, it's not a vote of confidence. That was before Hillary went over there to beg them to prop us up - I wonder what she offered as a guarantee.


BEIJING, China -- Sources at the United States Embassy in Beijing China have just CONFIRMED that the United States of America has tendered to China a written agreement which grants to the People's Republic of China, an option to exercise Eminent Domain within the USA, as collateral for China's continued purchase of US Treasury Notes and existing US Currency reserves.

The written agreement was brought to Beijing by Secretary of State Hillary Clinton and was formalized and agreed-to during her recent trip to China.

This means that in the event the US Government defaults on its financial obligations to China, the Communist Government of China would be permitted to physically take -- inside the USA -- land, buildings, factories, perhaps even entire cities - to satisfy the financial obligations of the US government.

Put simply, the feds have now actually mortgaged the physical land and property of all citizens and businesses in the United States. They have given to a foreign power, their Constitutional power to "take" all of our property, as actual collateral for continued Chinese funding of US deficit spending and the continued carrying of US national debt.
 

hypocritexposer

Well-known member
Lonecowboy.

Your post, still needs to be verified. It's a possibility, but it came up a few months ago, and still has not been verified, by a reputable source.

But it may just come to that!

Give them California, or one of the other liberal states with high taxes, they'll be more adjusted to socialism.
 
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