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Tuesday, March 27, 2018

The USA will issue close to $300b bonds this week.

https://www.bloombergquint.com/onweb/2018/03/26/vulnerable-stocks-and-record-u-s-debt-sales-dominate-the-week

This upcoming bond sale is worth watching because it will reveal foreign investors' confidence in the USA treasury market.  If the sale is underwhelming, the USA will have a big problem financing its economic growth, especially for Trump's fiscal policies.

The Libor-OIS spread is also worth monitoring as stated in our previous posting.

http://sg-stock.blogspot.sg/2018/03/libor-ois-spread-is-at-6-year-high-is.html

1 comment:

Eric Ho said...

https://www.cnbc.com/2018/03/28/the-fed-and-treasury-is-growing-an-800-disconnect-in-the-bond-market.html?__source=yahoo%7Cfinance%7Cheadline%7Cstory%7C&par=yahoo&yptr=yahoo

The USA is finding it increasingly difficult to sell its bonds.