NEW YORK, Jan 23- U.S. Treasury yields fell on Friday as European government bond yields dropped to record lows, a day after the European Central Bank said it would launch new stimulus in an effort to boost sagging regional growth and stave off deflation. "We're trading higher in sympathy with what's going on in Europe," said Ian Lyngen, senior government bond...» Read More
Debt talks will again dominate Tuesday, as markets increasingly worry political cat fighting will lead to a weak deficit reduction deal, causing the U.S. to lose its top-notch credit rating.
In the eyes of China, the biggest foreign holder of US Treasuries, the damage to America's reputation as steward of the world’s safest asset may already be done—even if a last-minute agreement to raise the debt ceiling is hatched.
The Federal Reserve can definitely sell its $1.6 trillion portfolio of Treasurys and use the profits to fund the U.S. government if the debt ceiling isn’t raised. This could allow the government to fund its on going obligations without raising taxes or incurring new debt.
Stephen Walsh, CIO of Western Asset management, told CNBC Monday that it’s the borrowers at the lower end of investment grade that may suffer if there is a downgrade of U.S. debt.
If the U.S. defaults on its obligations in early August, it will be because the President chose not to exercise his power to raise the debt ceiling on his own.
Should investors be raising cash because of all the drama in Washington? Doug Kass, Seabreeze Partners weighs in.
Most analysts that CNBC spoke to were against buying insurance on Treasurys or shorting U.S. government bonds. Instead they said they would focus on the forex markets, which could see the biggest moves in the worst-case scenario—if the U.S. defaults and has its credit ratings cut.
All eyes are turned towards the clock as the August 2 deadline for the US debt talks approaches. Treasurys investors could stand to benefit if Congress cannot agree to raise the debt ceiling.
European leaders could temporarily steal the spotlight from Washington lawmakers Thursday, as they meet in Brussels to discuss the Greek debt crisis and how to keep contagion from spreading.
Defying a veto threat, the Republican-controlled House voted Tuesday night to slice federal spending by $6 trillion and require a constitutional balanced budget amendment to be sent to the states in exchange for averting a threatened Aug. 2 government default.
A positive start to earnings season, including blowout results from Apple, is helping investors shake off worries and start buying the dips. On tap for Wednesday: UTX, AmEx, Intel.
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A lot of people assume that if the ratings agencies downgrade the credit rating of the United States, it will trigger a sell-off of Treasuries. Some even suppose that a sell-off would be automatically triggered by regulatory and fund charter requirements. Fortunately, this isn’t true.
However grim Washington’s debt and deficit negotiations may seem to Americans, the impasse is nearly as disturbing for China. As the United States’ biggest foreign creditor—holding an estimated $1.5 trillion in American government debt—China has been a vocal critic of what it considers Washington’s politicized profligacy.
Two weeks before their final deadline, President Barack Obama and top lawmakers will face more pressure Tuesday for a debt deal amid a growing sense that a last-ditch plan taking shape in Congress may be the only way to avoid a devastating U.S. default.
Gold is likely to hit $1,650 an ounce by the end of the year and could even hit $1,700, according to one analyst.
Traders are hoping earnings will continue to emerge as a bright spot Tuesday, when a string of major blue chips report ahead of the market open and Apple reports after the closing bell.
Debt drama in the US and Europe continues next week just as earnings season gets into full swing. It's going to be a volatile week for the market.
The debate has lasted longer and has been more intractable than anyone has expected, says John Chambers, S&P managing director.
A U.S. default isn't a matter of "if" but "when," David Murrin, chief investment officer at Emergent Asset Management, told CNBC.