Why Euro country's bond interest rates are increasing

Reply Tue 12 Jun, 2012 11:39 am
And bond interest rates in the US are dropping. That's the dynamics at work in the present world bond markets.

What I find of high interest is that US bonds are paying much less than the rate of inflation, but they are still selling well in the world's marketplace.

How long will this rate difference exist, and what will change this dynamics?

I'm interested in hearing opinions about these macro-economic relationships, and the future of bond sales, and its impact on world currencies.

Treasury sees poor demand at 3-year auction

NEW YORK (MarketWatch) -- The Treasury Department sold $32 billion in 3-year notes on Tuesday at a yield of 0.387%, up from last month's sale. Bidders offered to buy 3.53 times the amount of debt sold, in line with the average at the last six auctions of the maturities, according to Nomura Securities. Indirect bidders, a group which includes foreign central banks, bought 27%, the lowest in more than two years and compared to 35.9% on average.
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cicerone imposter
Reply Tue 12 Jun, 2012 01:08 pm
@cicerone imposter,
The World Bank has their say, and answers some of the questions I have.
World Bank Warns Euro Fears May Slow Global Growth

In a review of the global economy, the World Bank said fears about the euro zone had reduced investors’ tolerance for risk. It predicted slumping growth in coming years.

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