Wednesday, 10 June 2009

Weak Ten Year Note Auction - AP reporter says concern is that debt load is "untenable"

NEW YORK (AP) -- A weak auction of Treasury notes is putting the pressure on both stocks and bonds.

The Dow Jones industrial average fell about 65 points Wednesday after the government sold $19 billion in 10-year Treasury notes. The government had to lure buyers with a higher yield than the market anticipated.

The 10-year note's yield, which is closely tied to interest rates on mortgages and other consumer loans, jumped to 3.99 percent, a new high for the year.

Investors are concerned the government's debt load will become untenable, leading to higher inflation and soaring interest rates. Rising rates could hamper the economy's recovery.[my emphasis]

Not to sound alarmist but the AP journalist actually uses the world "untenable". I cannot help wondering who's going to bail out the bailout.

No comments:

Post a Comment