Thursday, March 05, 2015
Text Size

Search our Site or Google

Welcome, Guest
Please Login or Register.    Lost Password?

Chumps PAY to hold U.S. dollars
(1 viewing) (1) Guest
Talk Economics
Go to bottomPage: 1
TOPIC: Chumps PAY to hold U.S. dollars
Chumps PAY to hold U.S. dollars 2 Years, 11 Months ago Karma: 278
U.S. dollars are totally worthless. U.S. bonds are totally worthless. Yet now there are idiot-chumps PAYING for the privilege of holding U.S. bonds denominated in U.S. dollars.

"Treasury Sells Inflation Notes at Record Low Negative Yield"

The U.S. sold $13 billion in 10- year Treasury Inflation Protected Securities at a record low negative yield with investors willing to pay a premium to guard against the threat of rising consumer prices.

The TIPS were auctioned at a so-called high yield of negative 0.089 percent, the Treasury said today. The U.S. first sold the 10-year securities at a negative yield in January. Five-year TIPS have also been sold at negative yields.

“We are continuing to see inflation expectations gather steam,” said Aaron Kohli, an interest-rate strategist at BNP Paribas SA in New York, one of 21 primary dealers that are required to bid at the sale. “With energy prices running hot the market has priced in inflation over the next 10 years.”

The bid-to-cover ratio for the notes, which gauges demand by comparing the amount bid with the amount offered, was 2.81, compared to an average of 2.74 at the past 10 auction of the securities.

Indirect bidders, a category of investors that includes foreign central banks, bought 40.4 percent of the securities, compared to an average of 41.6 percent at the past 10 auctions.
Jeff Nielson
Posts: 13785
User Offline Click here to see the profile of this user
Last Edit: 2012/03/22 13:18 By Jeff Nielson.
The administrator has disabled public write access.
Go to topPage: 1

Disclaimer: is not a registered investment advisor - Stock information is for educational purposes ONLY. Bullion Bulls Canada does not make "buy" or "sell" recommendations for any company. Rather, we seek to find and identify Canadian companies who we see as having good growth potential. It is up to individual investors to do their own "due diligence" or to consult with their financial advisor - to determine whether any particular company is a suitable investment for themselves.

Login Form