click on chart to enlargeLooks like the Treasury Bond bubble has begun to burst. Foreigners have lost their appetite for U.S. Treasurys just when the government will be issuing trillions of dollars worth this year. Either the Fed will buy massive amounts of bonds with "printed" dollars or interest rates will have to rise substantially to attract foreign interest. The chart above is the ETF-TBT that is 2X short the 20 year Treasury. This is way to profit from the decline of the 20 year Treasury.-Lou
NEW YORK (AP) -- Stocks are finishing lower after weak demand at a Treasury bond auction touched off worries about the government's ability to raise funds to fight the recession. It has been steadly rfising as bond prices have fallen.
The government had to pay greater interest than expected in an auction of 30-year Treasurys. That is worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans.
Jitters about weak demand for government debt fanned the market's pullback. Bond prices tumbled following an auction of 30-year Treasury bills in which the government had to pay greater interest than expected.
That was worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans.
The yield on the benchmark 10-year Treasury note jumped to 3.30 percent from 3.16 percent late Wednesday. The yield on the 30-year long bond rose to 4.26 percent from 4.11 percent.
The yield on the benchmark 10-year Treasury note jumped to 3.30 percent from 3.16 percent late Wednesday. The yield on the 30-year long bond rose to 4.26 percent from 4.11 percent.
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