I am closely watching the treasury markets this week, beginning with the sales auctions tomorrow (Tuesday). The amount of U.S. debt borrowing is growing faster than a baby blue whale! If treasury sales aren't well bid, the ripple effect will be colossal! Congress and the officials at Treasury, the Fed, and the FDIC, are making huge assumptions that the demand will permanently remain strong for U.S government debt. If demand falters, it won't be a ripple -- it will be a tidal wave! Treasuries should see strong volatility this week, regardless of what happens!Monday, February 9, 2009
More Like Tidal Waves... Than Ripples!
I am closely watching the treasury markets this week, beginning with the sales auctions tomorrow (Tuesday). The amount of U.S. debt borrowing is growing faster than a baby blue whale! If treasury sales aren't well bid, the ripple effect will be colossal! Congress and the officials at Treasury, the Fed, and the FDIC, are making huge assumptions that the demand will permanently remain strong for U.S government debt. If demand falters, it won't be a ripple -- it will be a tidal wave! Treasuries should see strong volatility this week, regardless of what happens!
