By Daniel Kruger and Susanne Walker
June 1 (Bloomberg) -- For all the hand-wringing over the dollar’s slide, the expanding U.S. deficit and the nation’s AAA credit rating, the bond market shows international demand for American financial assets is as high as ever.
The Federal Reserve’s holdings of Treasuries on behalf of central banks and institutions from China to Norway rose by $68.8 billion, or 3.3 percent, in May, the third most on record, data compiled by Bloomberg show. The Treasury said bidding from foreigners was above average at its $101 billion of note auctions last week.
U.S. government securities have tumbled 4.3 percent so far this year, the worst performance since Merrill Lynch & Co. began tracking returns in 1978, as so-called bond vigilantes drove up yields to punish President Barack Obama for quadrupling the budget shortfall to $1.85 trillion. The purchases by foreigners show that, at least for now, there’s little chance of buyers abandoning the U.S. or threatening the dollar’s status as the world’s reserve currency.
“The U.S. Treasury market is the widest, deepest, most actively traded market in the world,” said Jeffrey Caughron, an associate partner in Oklahoma City at The Baker Group Ltd., which advises community banks investing $20 billion of assets. “There’s really no other game in town.”
Read entire article :
THE PETER SCHIFF BLOG : An Unofficial Tracking of Peter Schiff and The Libertarian Austrian School of Economics
PETER SCHIFF

Monday, June 1, 2009
Subscribe to:
Post Comments (Atom)
Popular Posts This Month
-
Here are some of Peter Schiff's Quotes , Please feel free to post more , and I'll make sure to add them to this list ...let's ma...
-
by Peter Schiff Strike up the band, boys, happy days are here again! Recently released short-term economic dat...
-
Once again, someone Cenk Uygur trying to debate Peter Schiff simply lacks the finance and economics knowledge to do so . The Young Turks al...
-
Peter Schiff : We need to have a Massive Recession and Peter Schiff: Why College Tuition Is So Expensive Lessons from the Crisis: The Limits...
-
The Free Fall of the Dollar : “When the U.S. decouples, the world will thrive,” “The world doesn’t need our consumption, we need their produ...
-
Minimum Wage, Maximum Stupidity By Peter Schiff In a free market, demand is always a function of price: the higher the price, the lower the ...
-
by Peter Schiff April 17, 2009 In a speech this week summarizing his administration’s economic policies, President Obama grossly overstated ...
-
Bailouts, stimulus packages , debt piled upon debt, where will it all end? How did we get into a situation where there has never been mor...
No comments:
Post a Comment