Thursday, February 09, 2006

return of the Long Bond

FYI

Treasury just auctioned the first 30YR bond since 2001 – kind of a milestone
Bond was trading at 5.57% on “when issued” basis before auction, came at 5.53%, traded down to 5.50% on the strong demand…
Foreign central banks took down half the issue

the 2YR is trading at 4.63%
pretty screwy if you ask me.. it’s cheaper for the government to borrow money for 30 years than it is for a bank to borrow overnight..


Why would Asia finance our exploding entitlement and war liabilties? my bet is we continue to print money inflating the currency. you'll have plenty of dollars to retire on, the problem is that it might take $1,000 to buy a loaf of bread. your advil will cost about $10,000...

-the cynic

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