Treasuries

I know everyone is still talking about President Trump's contracting coronavirus. But I want to talk about the virus from a different, more economic lens. That's because I was talking to the excellent David Rosenberg last week about the…

At first, I called this post "More on Quarles and the introduction of a standing repo facility". But that's not a sexy title is it? That's because repo isn't a sexy topic. I think it's important though. If we have a liquidity crisis though,…

A number of recent articles suggest that Chinese officials may reduce their purchases of U.S. government bonds. It is very unlikely that China can do so in any meaningful way because doing so would almost certainly be costly for Beijing.…

Once again we are hearing very worried noises from various sectors about the possibility of a reduction in Chinese purchases of USG bonds. Is the PBoC going to stop buying USG bonds?

Is the PBoC going to stop buying US treasuries? The debt ceiling debate and a potential default have brought this question back into the spotlight. The theoretical and the real world answer to concerns about China and US debt is the same:…

Marshall Auerback and Rob Paenteau explain a method the Fed might use to target interest rates further out on the yield curve.

Yesterday, I indicated that the FOMC has already considered offering unlimited quantitative easing to target specific interest rates during the second round of quantitative easing. I believe the Fed will do this in QE3, and apparently Bill…

So, the data are weakening. What does that portend for the rest of the year? Lakshman Achuthan of the ECRI thinks it means a serious global slowdown. Below is a recent interview he did on Yahoo's Tech Ticker explaining why.

Below is the text from the letter from US Treasury Secretary Timothy Geithner to Congress via Harry S. Reid, Majority Leader of the Senate, informing Reid that the debt ceiling has been breached.

Frederick Sheehan argues that we are overleveraged, undercollateralized, and accentuating these unsustainable imbalances through economic policy to smooth out volatility.