UPDATED: “Green Shoots” Wither?
FT: “US long-term interest rates rose to the highest level of the year on Wednesday, threatening the ‘green shoots’ of recovery, after the latest sale of 10-year government debt met with a tepid response from inflation-wary investors.”
Is it because of “Bush’s deficit”? Not quite. Seems new borrowing has something to do with it: “Concerns about the growth of government borrowing forced the US Treasury to give investors in an auction of $19bn in 10-year notes a yield of 3.99 per cent – 4 basis points higher than the yield available before the auction.”
Call me crazy, but perhaps Obama is not handling federal spending as well as we would like.
UPDATE: BRIC-whacked! WSJ: Russia and Brazil are set to unload Treasurys as they acquire $10 billion each of new IMF securities. China and India may follow. “The announcements helped push Treasury yields to their highest level this year on concern that rising U.S. debt has hurt T-bill demand among big holders of U.S. dollar reserves.”
So much for the almighty dollar…
MORE: Related content at Instapundit: A comprehensive round up of signs that “Outragesous Spending is Becoming a Problem for Obama”. It parallels this post of mine from earlier today, but has lots more links.
ANOTHER ONE: Woops! That last Instapundit link was wrong. Just fixed it. Sorry.
