Erin Burnett has left a new comment on your post "Meghan McCain react to Pres. Trump specifying that...":
Markets don't seem to mind, at least not yet
The good news is that Uncle Sam is having no trouble, at least so far, with financing the deficit. The 10-year Treasury rate is near all-time low at just 0.7%. That signals investors don't fear the US debt situation is even near a breaking point.
Markets aren't freaking out about US debt for a few reasons.
First, this spending is temporary and emergency in nature.
Second, the US dollar remains the preeminent international reserve currency and US Treasury market is the deepest and largest in the world. Those are huge advantages that keep demand strong for US debt.
Third, it's extremely cheap to borrow right now. The Fed slashed interest rates to near-zero --and economists think they may stay there into 2022.
"It doesn't blow us up -- because interest rates are so low," said David Kelly, chief global strategist at JPMorgan Funds.
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Posted by Erin Burnett to ANT at May 6, 2020 at 7:41 PM
Markets don't seem to mind, at least not yet
The good news is that Uncle Sam is having no trouble, at least so far, with financing the deficit. The 10-year Treasury rate is near all-time low at just 0.7%. That signals investors don't fear the US debt situation is even near a breaking point.
Markets aren't freaking out about US debt for a few reasons.
First, this spending is temporary and emergency in nature.
Second, the US dollar remains the preeminent international reserve currency and US Treasury market is the deepest and largest in the world. Those are huge advantages that keep demand strong for US debt.
Third, it's extremely cheap to borrow right now. The Fed slashed interest rates to near-zero --and economists think they may stay there into 2022.
"It doesn't blow us up -- because interest rates are so low," said David Kelly, chief global strategist at JPMorgan Funds.
Unsubscribe from comment emails for this blog.
Posted by Erin Burnett to ANT at May 6, 2020 at 7:41 PM
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