US Treasury prices recover slightly
As the US government comes to the end of a $101 billion bond auction traders are breathing a sigh of relief after the last $26 billion auction went relatively well. Despite the fact that yesterday saw a significant fall in Treasury prices across the board, there was something of a recovery today even though many analysts have grave fears about the state of the US economy.
While there is no doubt that the US authorities will need to raise further significant capital in the short to medium term many believe that the government will give the green light for further bond and Treasury purchases using taxpayers funds. There is a feeling that the recent fall may well have been overdone, at least in the short term, and could tempt the authorities back into the market. So whether today's bounce is based upon hopes for the economy or a technical situation remains to be seen.
It will be interesting to see how the UK markets react to the inevitable fund-raising exercises in the future with the UK government in desperate need of capital to service debt. Will UK and overseas investors be willing to put up billions of pounds of money in return for government bonds or will the authorities be left to lick their wounds and look elsewhere?
Share this..
Related stories
Icelandic government set date for referendum
The Icelandic government has now set a date for a referendum which will give the Iceland population the opportunity to vote on the proposed compensation package to be paid to the UK and the Netherlands governments. In reality this is the return of a loan financed by the UK and the Netherlands government which will be used, or that was the idea, to repay savers who lost out in the Icelandic banking...
Read MoreBanks accused of scare tactics over charges
The UK's banks have been accused of trying to 'frighten' their customers into abandoning attempts to reclaim money they paid in unauthorised overdraft charges.Consumer group Which? is urging people to continue reclaiming their bank charges despite a county court ruling earlier this month which rejected the attempt of a Lloyds TSB customer to recoup £2,545 he had paid the bank for exceeding his ov...
Read MoreAre we on the verge of a £1,000 a year income tax rise?
As the UK budget deficit of around £160 billion a year comes under more scrutiny there are serious concerns of a potential £1,000 a year income tax rise per person in the UK. A number of forecasters believe this is the amount by which annual income tax will need to increase over the next decade to allow the government to pay down debt and maintain public services. There are also fears that ma...
Read MoreHouse prices for first time buyers ‘up 5pc’
The price of a house for a first time buyer has risen 5pc since the summer, according to a report representing data collected by Halifax. This includes a rise of 2pc last month alone, with average prices rising to £125,799. This highlights the increasing struggle that first time buyers face to get on the property ladder, but at the same time the fact that the housing market is gaining in st...
Read MoreIs the OFT giving up on the overdraft charge challenge?
The Office of Fair Trading (OFT) is expected to make an announcement tomorrow regarding the recent setback in the legal battle with UK banks about overdraft charges. While rumours in this particular case have been incorrect before, there is intense speculation that the OFT is about to drop its legal challenge and will not commit itself to an appeal. If the announcement confirms this particular...
Read More