InfoAnda - Rising bond market tensions bode ill for Obama

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Jamaican PM: new constitution should ban gay marriage | 14 October 2009
Can stimulus, lower rates save Asia's economies? | 26 January 2009
India not planning to attack Pakistan: minister | 16 December 2008

More than 70 rescued in Indonesia ferry sinking | 10 August 2010

">Forum Views () ">Forum Replies ()

Read more with google mobile : Rising bond market tensions bode ill for Obama

Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Rising bond market tensions bode ill for Obama AFP - Sunday, February 1 WASHINGTON, (AFP) - - Bond market tensions have been rising since the inauguration of President Barack Obama, highlighting worries about the new administration's plans for massive debt issuance and a tough stand on trade with China. ADVERTISEMENT An unusual jump in bond yields could mean the US government will be forced to pay higher rates on the trillions of dollars in new bonds to finance economic rescue efforts, or worse, lead to a loss of confidence in the Treasury market, say analysts. Moreover, a jump in bond yields could push up rates for mortgages and other loans tied to Treasury bonds, hurting economic recovery efforts. The yield on the 10-year US Treasury bond had surged half a point to 2.844 on Friday from 2.304 percent before the January 20 inauguration. A similar rise has pushed the 30-year bond yield to 3.603 percent from 2.894 percent. Some of the jump in yields may be the result of an unwinding of the "bubble" in Treasury bonds or "fear trade" from global investors rushing to buy what are seen as the safest investments in the world. But some economists say comments from new Treasury Secretary Timothy Geithner about China's "manipulation" of its currency could alienate one of the biggest buyers of US Treasury bonds and lead to increased trade friction. "The Treasury market seems to remain somewhat unnerved by last week's saber-rattling about China's currency policy," says Kevin Giddis, a bond market analyst at Morgan Keegan. "Leveling the playing field of global trade may be a noble cause, but it's not so clear that now is the best time to aggravate our nation's largest creditor." Economists estimate the US will issue as much as 2.5 trillion dollars in new debt in the coming year. Although the government up to now has easily found buyers for these bonds, any hint of trouble could be devastating. Scott Anderson, economist at Wells Fargo, said: "While the US Treasury Department has one of the best credit lines in the world -- like your own credit card -- there is a finite credit limit." Obama's new administration said it will determine in the coming months whether China is manipulating its currency, setting the stage for a new round of trade friction with Beijing. Under the Bush administration, the Treasury had stopped short of identifying China a currency manipulator in its semiannual global currency reviews, acknowledging however that the yuan was relatively undervalued against the US dollar. By directly branding China, Obama has laid the groundwork for trade friction between the key powers, both reeling from global financial turmoil that has slammed the brakes on growth and triggered a host of domestic problems. "Why are we picking a fight with China?" says David Kotok at Cumberland Advisors, who said the action suggested a move toward protectionism. "How does the Obama administration believe that launching a fight with China is beneficial? In the 1930s the severe recession of 1929-1931 was turned into the depression of 1931-1933 because of protectionism." The market is also watching to see if the Federal Reserve goes ahead with plans to buy up Treasury bonds in an effort to influence interest rates it does not directly control, to stimulate the recession-plagued economy. Wells Fargo's Anderson said there remains concern about the notion "of trading government IOUs for Fed IOUs" which could undermine confidence in US bonds. The risk, said Anderson, is that "the market could determine that the emperor has no clothes, and you could see a spike in interest rates and a collapse in the dollar." Ed Yardeni at Yardeni Research said increases in the 10-year Treasury yield "mean increases in mortgage rates" and that this has led to a jump in mortgage rates from a low of 4.89 percent to 5.24 percent in late January. "That's not a good development," he said. "At this time, the only fast way to stimulate the economy is to give borrowers an opportunity to refinance their mortgages." Email Story IM Story Printable View Blog This Recommend this article Average (1 vote) Sign in to recommend this article » Most Recommended Stories » Related Articles: Business Israel to give aid to high-tech, biotech sectorsReuters - 23 minutes ago IMF-positive result from Turkey loan talks soon-AAReuters - 49 minutes ago US-BUSINESS SummaryReuters - 53 minutes ago Investor patterns still stuck in mireReuters - 54 minutes ago GLOBAL MARKETS WEEKAHEAD-Investor patterns still stuck in mireReuters - 57 minutes ago Enlarge Photo Rising bond market tensions bode ill for Obama Related Photos Slideshow US elections 2008 Most Popular – Business Viewed Octuplets' mother already had six children: report Turkish PM defends Gaza outburst 'Superman' Brown falls to earth as recession hits Britain Soldier suicides hit record in 2008: US Army Exxon notches 45.22 billion dlrs record profit View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

Other News on Sunday, 1 February 2009
Russia arrests dozens at anti-Putin protests
Chinese premier joins New Year party in Britain
Thousands march to Gov't House in fresh Thai protests
Afghans threaten US troops over civilian deaths
Indian Maoists offer ceasefire: report
Woman diagnosed with bird flu in China: report
Japan pledges $17 billion Asia aid package
US-funded program to arm Afghan groups begins
The Economist withheld for 2nd week in Thailand
Thousands of Thai police deploy ahead of protest
6 killed in Indonesian landslide
Google 'error' labels websites as harmful
Venezuelan synagogue attacked as relations worsen
Death toll from Kenya oil blaze rises to 111 | International |
Iraqi Christians caught in middle of Mosul vote
Sri Lanka to resume offensive after truce lapses | International |
Suicide bomber hits foreign forces in Kabul: police | International |
Obama to unveil measures to free up credit
Netanyahu says Iran will not get hands on nukes
Japan on heightened alert for Mount Asama eruption | International |
World Social Forum tells Davos to fix crisis -- or else
Iran marks 30th anniversary of revolution
African Union warns Madagascar opposition leader | International |
US says 2 Iraqi police killed in shooting
Obama seems unlikely to widen war in Afghanistan
Gazan rockets hit Israel, no damage: police | International |
Gaza rocket hits Israel ahead of truce talks
Police destroy large bomb in Northern Ireland | International |
Snow, fog, rain likely to cause China travel chaos | International |
Obama has begun discreet talks with Iran, Syria
Obama praises Iraqis on provincial elections
FBI Severs Ties With Prominent Muslim Charity Group
Obama facing dilemma over protectionism
Three-Year-Old Killed In New Jersey; Pickup Collided With Fire Engine
Small Plane Crash In West Virginia Kills All Six People On Board
Obama brother arrested over cannabis possession
Estonian tourist trade turns to IT to fight recession
Troops In Iraq Allowed Two Beers For Super Bowl
Obama's Half Brother Busted For Pot Possession In Kenya
Assad calls for 'positive' dialogue with US
HHS Nominee Daschle Had Tax Issues; Failed To Pay Before Nomination
Fire kills 23 in Russian retirement home: official
British PM slams strikers in EU workers row
136-kg car bomb found by N. Ireland school
Swiss police clash with anti-Davos protesters, arrest 60
Destructive wildfires tamed as Australian heatwave eases: officials
NKorea's Kim hails 'invincible' army as tensions mount
Crisis summit signals era of big government
Acclaim in Vienna for Neumeier's "Death in Venice"
Indian arrested with drugs in soap in Malaysia
India to meet 7.0 pct growth this year: politicians
Lachey defends ex-wife's apparent weight gain
Farmer in central China sick with bird flu
Pakistan keeps discount rate at 15 pct as economy slows
China birthday party blaze kills 15 in bar: media
Super Bowl ads reflect tough times in US
Pakistani cenbank sells 16.5 bln rupees of T-bills
Blaze caused by fireworks kills 15 in China: state media
Foreign stars light up French comics fest
15 dead, 22 injured in bar fire in southern China
At 100, Billy Graham singer's voice still booming
15 dead, 17 injured in bar fire in southern China
Black photographers' work featured at Smithsonian
Sri Lanka deadline for civilian safe passage ends
Danny Boyle's `Slumdog Millionaire' wins DGA honor
Tom Cruise in Brazil to promote movie
Super Bowl ads promise glitz, guffaws, groans
Audiences heart 'Paul Blart'
Israel vows disproportionate response to rockets | International |
Israel threatens response to new militant rockets
North Korea says two Koreas on path toward war | International |
Strong turnout in landmark Iraq elections
Zimbabwe to pass unity government law on Wednesday: media | International |
Government allies see gains in Iraqi elections
Europe struggles for unity in face of recession
Indian plane makes emergency landing after threat | International |
Israel vows "disproportionate" response to rockets
'Superman' Brown falls to earth as recession hits Britain
Iranian police kill 10 drug smugglers
One year on, France's first couple settles in
Israel vows 'disproportionate' response to Gaza rockets
After Davos row, Livni urges Turkey to respect Israel
Three Afghan civilians killed in military action: NATO
Afghan artists learn from Italian master
Kentucky Governor Activates All National Guard Troops; Aid In Ice Storm
Iraq holds peaceful election, Obama, U.N. applaud | International |
US soldier dies in northern Iraq
New Somali president sees positive U.S. role | International |
Iceland eyes new government | International |
Muslim cult boss held for blasphemy: Jakarta police | International |
Russian Orthodox Church to enthrone new patriarch
North Korea warns of possible war with South Korea
Clashes in Pakistan's Swat Valley kill 17
UN envoy meets Suu Kyi liaison: Myanmar govt
Danny Boyle wins top director award for Slumdog | Entertainment |
S.Korea suffers record export fall as downturn bites
Thai govt rejects protesters' calls to quit
Danny Boyle wins top director award for "Slumdog"
Asian airlines trim down for expected hard landing
3 million join mass prayer in Bangladesh
Danny Boyle's `Slumdog Millionaire' wins DGA honor
Police: Grenade attack kills 1 in Pakistan
Japan's listed firms hit by 71 pct profit slump: survey
French police take on Lebanese drivers
Global crisis hits China's huge Yiwu market, but optimism remains
Grenade at Thai temple fair kills 8, wounds 27
Queen of burlesque Von Teese on fashion, fetishes and France
Rising bond market tensions bode ill for Obama
Thai PM rejects protesters' call for election
Japan warns of eruptions at volcano
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01