Rates on Treasuries are at or near historic lows. Why doesn't the Government start selling the $700b in bonds now to take advantage of the ultra low interest rates they'd have to pay for borrowing costs on the money rather than waiting to sell them in 2009?
Why doesn't the Govt issue bonds now while rates are so low to pay for the TARP?
- Thread starter seasideheights
- Start date
I take it you are unaware that Treasury runs auctions AT LEAST once a week.
http://www.treas.gov/offices/domestic-finance/debt-management/auctions/auctions.pdf
http://www.treas.gov/offices/domestic-finance/debt-management/auctions/auctions.pdf
here's a blogger who focuses on the bond market with his take on the latest:
http://acrossthecurve.com/?p=2097
http://acrossthecurve.com/?p=2097
I'm aware of that.
The Treasury said the auctions for the $700b TARP funding wouldn't start until sometime in 2009.
It's a meaningless statement. Money is fungible - Treasury auction proceeds are used on a first-come first-served basis.
It wasn't my statement.
I think Rick Santelli on cnbc said it.
Res ipsa loquitor.
The other issue is that demand for long-dated USD Treasuries appears to have weakened considerably. Based on the G20 communique from today, this would appear to be..."non accidental".