Treasuries and the cost of capital
This is an ongoing story. The main question continues to be: how long can low rates last. Every time someone calls the end, they have been off…so far. At some point, someone will call the end and will be right. If nothing else, the Japanese situation has shown us that rates can stay low longer than we can stay incredulous. Will the US rates stay low? Doubtful for a number of reasons, but the main one is that Japanese savings rates continue to stay high, the Japanese were a world creditor. The US on the other hand is a debtor nation, and the situation is only getting worse with fiscal policies based on borrow-your-way-out-of-the-hole. http://www.nytimes.com/2009/11/23/business/23rates.html?_r=1&hp
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Tags: low yields, treasuries
Fixed Income/Bonds | Yaron Sadan | 
November 23, 2009 12:27 pm
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By MacroMan, November 23, 2009 @ 3:17 pm
The end will not be the end on a given day. The end will be a process.