The US 10-year Treasury bond yield fell 0.7 percent in response to the latest report of jobless claims. That comes a week after the Treasury said it would borrow a record $2.99 trillion this quarter, and launch a 20-year bond.
RT’s Boom Bust talks to former Federal Reserve insider Danielle DiMartino Booth about what all that means for the future.
“We’re starting to see the actual numbers come out. It’s no longer $25 trillion of debt in theory…” she said. “This is reality, folks. The Treasury will have to borrow a lot of money, and it’s a unique time when the stock market and the bond market are serving up such desperate views on the outlook for the US economy.”
According to Booth, if we’d known a few years ago that the Treasury was going to issue $3 trillion in debt, “interest rates on the 10-year benchmark would be through the roof.” And yet that’s not what we’re seeing, she said, adding, “The word that I would attach to this is ‘conundrum.’”
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