WASHINGTON— Interest rates on short-term Treasury bills soared in Monday's auction to their highest levels since March 2009, as investors expect that the Federal Reserve will soon start raising interest rates. The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.215 percent, up from 0.140 percent last week.» Read More
Wednesday's economic data could help investors decide whether Tuesday's stock rally is the start of a turn around or just a break in the clouds.
This month, the battle over raising the country’s debt ceiling is likely to be a nice preview of the bipartisan budget battle that will rage until the final moments of Election Day, 2012.
Are global markets headed for economic disaster? Quincy Krosby, Prudential Financial, and Eugene Peroni, Advisors Asset Management parse out the data.
Bill Gross, Pimco founder & co-CIO, says banks haven't been aggressive buyers of Treasurys up to this point. "We always wondered who will buy Treasurys," he tells CNBC's "Squawk Box."
Following the Federal Reserve’s decision to throw two football fields worth of dollars at the US economy all that has been achieved is a fall in unemployment from 10 percent to 9.1 percent, according to Philippe Gijsels, the head of research at BNP Paribas Fortis Global Markets.
Some of Wall Street’s biggest banks are preparing to curtail use of US Treasurys in August as a precaution against any turbulence that could follow if lawmakers fail to raise the U.S. debt ceiling soon, the FT reports.
After six straight down weeks, stocks could get rocked in the week ahead amid a slew of economic reports. "Sentiment is still falling," one strategist said, though added that it "hasn't dropped into panic territory."
BlackRock's Laurence Fink is not concerned with the current "soft patch" in the U.S. economy or the Dow industrials below 12000. In the long-term, he believes dividend-paying stocks will be a better investment than bonds.
The bulls trotted gingerly back into the stock market and, if they stick around on Friday, the market could avoid a sixth week of losses. Still, one market strategist cautioned: "It is not the beginning of a new bull market rally."
China has a lot at stake when it comes to U.S. debt and the dollar, with David Riedel, Riedel Research Group president.
Housing, credit, public finances, and the labor areas of the economy are currently impaired and until the country gets over those structural impairments, economic growth will be tough for a while, says Mohamed El-Erian, Pimco CEO/Co-CIO, who also mentions that Washington needs a growth strategy in order to get over these headwinds.
Muni defaults are a consequence of state budget gaps, says Meredith Whitney, Meredith Whitney Advisory Group founder/CEO, who also points out that there are insufficient revenues to support state projects.
Treasurys and fixed income are still a good place to invest in currently, says Eric Pellicciaro, BlackRock head of global rates investments.
Despite weak economic data a double dip recession is unlikely and investors should favor stocks over bonds, according to Chris Watling, the CEO of Longview Economics in London.
If this is what a soft patch in the economy looks like, then beware the specter of a hard landing.
Dismal stocks and stats tell the story.
“There is one bet right now: Bernanke will bail out the world,” says one market pro. “If that does not happen, then no investment will be safe.”
CNBC's Rick Santelli reports Treasury prices rallied today on the heels of more weak economic data, and pushed the yield on the ten year note below 3%.
Wall Street is having a hard time figuring out what to do now that the US economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.
Fears over the continuing European sovereign debt crisis and weaker than expected economic data from the US helped to push the price of US Treasurys up and take yields to a six month low on Thursday as investors looked for safety.