What's that about how people in glass houses shouldn't throw stones?

What's that about how people in glass houses shouldn't throw stones?
Jan 23, 2009 21:00
MARRIE Points: Join Date: Jan 7, 2008 Status: offline	T-Bond plunged today. His talks is irresponsible and dangerous. Probably this guys strategy is to print more paper money to pay off debts. http://latimesblogs.latimes.com/money_co/2009/01/geithner-china.html Interest rates on long-term Treasury bonds have jumped today, lifting the 10-year T-note yield to a six-week high, after Treasury secretary-designate Timothy Geithner accused China of "manipulating" its currency. His comments raised the risk of a new U.S.-China row over trade, which in turn could dim China’s appetite for Treasury debt -- at a time when U.S. financing needs are skyrocketing as the Obama administration ramps up spending to bail out the economy. The 10-year T-note yield was at 2.60% at about 11:10 a.m. PST, up from 2.52% on Wednesday and the highest since Dec. 11. The 30-year T-bond yield jumped to 3.24% from 3.14% Wednesday. In written testimony to the Senate as part of his confirmation hearings, Geithner said that "President Obama -- backed by the conclusions of a broad range of economists -- believes that China is manipulating its currency. The new economic team will forge an integrated strategy on how best to achieve currency realignment in the current economic environment." China’s U.S. critics have long asserted that by keeping its currency undervalued, China keeps prices of its exports artificially low, at American manufacturers’ expense. . . . "There’s concern on the China front," Kevin Flanagan, a fixed-income strategist for Morgan Stanley’s individual investor clients, told Bloomberg News. "Do they fire back and stop buying Treasuries, especially given the huge amount of supply we’re going to need to underwrite over the next few years?"

Jan 23, 2009 21:00

MARRIE
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Join Date: Jan 7, 2008
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T-Bond plunged today. His talks is irresponsible and dangerous. Probably this guys strategy is to print more paper money to pay off debts.

http://latimesblogs.latimes.com/money_co/2009/01/geithner-china.html

Interest rates on long-term Treasury bonds have jumped today, lifting the 10-year T-note yield to a six-week high, after Treasury secretary-designate Timothy Geithner accused China of "manipulating" its currency.

His comments raised the risk of a new U.S.-China row over trade, which in turn could dim China’s appetite for Treasury debt -- at a time when U.S. financing needs are skyrocketing as the Obama administration ramps up spending to bail out the economy.

The 10-year T-note yield was at 2.60% at about 11:10 a.m. PST, up from 2.52% on Wednesday and the highest since Dec. 11.

The 30-year T-bond yield jumped to 3.24% from 3.14% Wednesday.

In written testimony to the Senate as part of his confirmation hearings, Geithner said that "President Obama -- backed by the conclusions of a broad range of economists -- believes that China is manipulating its currency. The new economic team will forge an integrated strategy on how best to achieve currency realignment in the current economic environment."

China’s U.S. critics have long asserted that by keeping its currency undervalued, China keeps prices of its exports artificially low, at American manufacturers’ expense. . . .

"There’s concern on the China front," Kevin Flanagan, a fixed-income strategist for Morgan Stanley’s individual investor clients, told Bloomberg News. "Do they fire back and stop buying Treasuries, especially given the huge amount of supply we’re going to need to underwrite over the next few years?"

Jan 23, 2009 21:01

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Treasury yields have rebounded this year from record lows in December. The 10-year T-note bottomed at 2.06% on Dec. 30.

Many market pros had expected some backup in yields just given the heavy calendar of bond offerings this quarter. The Treasury today said it will sell $40 billion in two-year notes and $30 billion in five-year notes next week.

Geithner just gave potential bond buyers something else to worry about.

Rising Treasury yields threaten to push up other interest rates as well, including on mortgages -- at a time when many Americans are desperate to refinance their home loans. The average 30-year mortgage rate nationwide rose to 5.12% this week from last week's record low of 4.96%, mortgage giant Freddie Mac reported today.

-- Tom Petruno

Jan 23, 2009 21:03	#2
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Timothy Geithner

Jan 23, 2009 22:51	#3
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	Or.....look in his backyard first before judging his neighbor's backyard.

Jan 24, 2009 10:02	#4
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Gary, you'll be a strong candidate to replace this guy next term.

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