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View Full Version : The bond market calls Bernanke's bluff

geir
06-04-2009, 04:02
The interest that the US government has to pay to borrow money (http://finance.yahoo.com/echarts?s=%5ETNX#chart1:symbol=^tnx;range=3m;indic ator=volume;charttype=line;crosshair=on;ohlcvalues =0;logscale=on;source=undefined) is now back up almost where it was when Ben Bernanke announced the Fed would spend $300 billion buying the long end of treasury notes. What will he do if it goes beyond 3% again?
goldfinger
06-04-2009, 10:19
The interest that the US government has to pay to borrow money (http://finance.yahoo.com/echarts?s=%5ETNX#chart1:symbol=^tnx;range=3m;indic ator=volume;charttype=line;crosshair=on;ohlcvalues =0;logscale=on;source=undefined) is now back up almost where it was when Ben Bernanke announced the Fed would spend $300 billion buying the long end of treasury notes. What will he do if it goes beyond 3% again?

Maybe they will do as they did during WW2, just print to keep them down. However I think it will just rise, the 4 % level seems to be within range.