10 Year Treasury Rate Breaks Down After Fed Buys US Debt
Posted on | July 8, 2009 | No Comments
Please use Subprime Blogger to get your average mortgage rates and analysis on how it will affect the economy. There are also articles that help to assist you by giving you an interest rate forecast.
I think all that needs to be stated is this:
Yields on 10-year securities fell the most since March 18, when the Federal Reserve said it would buy U.S. debt in an effort to cap borrowing costs. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 3.28. The note sale is the third of four this week totaling $73 billion. Traders speculated that company earnings reports scheduled to start today will show profits fell in the second quarter.
Why oh why is the Federal Reserve continuing to create artificial mortgage rates? At one point President Obama and Ben Bernanke are going to realize that the Federal Reserve Bank is not a printing press. They are keeping interest rates low over the short term but that is going to cause inflation to be absolutely nuts in the future. I really wish someone on President Obama’s advisory board would point out that eventually this is going to come back to bite us in the ass.
Just as Jim Rogers stated yesterday, eventually other countries are not going to loan us money at rates this low. They are going to realize that America is in deep shit in terms on monatery policy and debt which will cause them to opt out of buying bonds from the United States. I am not sure when Ben Bernanke and Obama are going to let the market set interest rates, but I sure hope it is much sooner rather than later. I honestly hope we do not have another 1982 with the economy as bad as it is, but it sure seems likely at this point.
Tags: 10 year treasury rate > Artificial mortgage rates > Ben Bernanke > Fed buys Debt
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