If you sell it, they will come

By Peter Boockvar - July 27th, 2009, 7:37AM

‘If you sell it, they will come,’ is the US Treasury’s Field of Dreams mantra this week as they attempt to sell $205b of US debt most of which should be easy to sell as most have maturities of 5 years and less. If the stock market is right and the economy in the 2nd half of the year will have a strong rebound, then interest rates are going higher due to higher inflation and the demand on the part of foreigners, who own half our debt, and others for higher yields for the enticement of buying the enormous new supply. Goldilocks of strong growth and low inflation was 1990′s fiction. The US$ is falling to just shy of its lowest level since Dec ’08 vs the euro after the Aug German consumer confidence # was better than expected and rose to the highest level since July ’08. Hong Kong exports fell at the slowest pace since Nov ’08 and Asia stocks continue their melt up. June New Home sales are out at 10am.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “If you sell it, they will come”

hopeImwrong Says:
July 27th, 2009 at 10:01 am
I find it hard to interpret the stock market as predicting an strong rebound in the economy in the second half. The stock market (at best) is predicting corporations can cut costs and restructure fast enough in this environment to be profitable.
KidDynamite Says:
July 27th, 2009 at 10:50 am
peter – do you have any idea how much of this Treasury issuance is replacing expiring issues? ie, how much will be “rolled” ?