Comments on: The unexpected T-bill rally http://blogs.reuters.com/felix-salmon/2011/04/05/the-unexpected-t-bill-rally/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: TFF http://blogs.reuters.com/felix-salmon/2011/04/05/the-unexpected-t-bill-rally/comment-page-1/#comment-25607 Tue, 05 Apr 2011 20:07:46 +0000 http://blogs.reuters.com/felix-salmon/?p=7824#comment-25607 Agreed with DanHess, rising interest rates push investors to the short end. I’ve been making that conscious decision myself, not particularly motivated by fear of default (I hold some long-duration TIPS) but by fear of having inflation eat my principal.

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By: petertemplar http://blogs.reuters.com/felix-salmon/2011/04/05/the-unexpected-t-bill-rally/comment-page-1/#comment-25603 Tue, 05 Apr 2011 18:04:18 +0000 http://blogs.reuters.com/felix-salmon/?p=7824#comment-25603 Felix, explain to me how the Treasury could fail to pay interest in its own currency.

It’s unreal that people think our government is revenue constrained.

Even Paul Krugman has been willing to talk about Modern Monetary Theory.

Felix, why do you tap dance around this issue? I’d like to think you aren’t enthrall to the deficit peacocks like Peter Peterson.

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By: DanHess http://blogs.reuters.com/felix-salmon/2011/04/05/the-unexpected-t-bill-rally/comment-page-1/#comment-25602 Tue, 05 Apr 2011 17:57:41 +0000 http://blogs.reuters.com/felix-salmon/?p=7824#comment-25602 Huge short term treasury interest probably means investors are terrified of the long end of the yield curve. That doesn’t seem to be a vote of confidence in US debt at all.

If you believe interest rates are on the way up, stocks and long bonds could both get hit and then T-Bills are the best of a bad bunch.

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By: GRRR http://blogs.reuters.com/felix-salmon/2011/04/05/the-unexpected-t-bill-rally/comment-page-1/#comment-25601 Tue, 05 Apr 2011 17:50:38 +0000 http://blogs.reuters.com/felix-salmon/?p=7824#comment-25601 Haven’t investors been exposed off and on to negative yields on TIPS since the crisis of ’08?

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By: klhoughton http://blogs.reuters.com/felix-salmon/2011/04/05/the-unexpected-t-bill-rally/comment-page-1/#comment-25600 Tue, 05 Apr 2011 17:46:38 +0000 http://blogs.reuters.com/felix-salmon/?p=7824#comment-25600 Amazingly, that $200 million–which the FT is rather cavalier about–does not appear (from what I can tell) in all of the accountings of How Well TARP Worked.

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By: MervynP http://blogs.reuters.com/felix-salmon/2011/04/05/the-unexpected-t-bill-rally/comment-page-1/#comment-25598 Tue, 05 Apr 2011 15:39:28 +0000 http://blogs.reuters.com/felix-salmon/?p=7824#comment-25598 Made 200 million or 200 billion?

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