January 18, 2015
THE GREATEST HEADWIND THE WORLD ECONOMY FACES:
The Shrinking Deficit Means Fewer New Bonds (AKIN OYEDELE, JAN. 14, 2015, Business Insider)
Gluskin Sheff's David Rosenberg is convinced that the 30-year bull market in US treasuries still has room to run.One key reason: supply and demand in the bond market.In a note Tuesday, Rosenberg highlighted that because the federal budget deficit is shrinking, there is less need for the government to borrow money by issuing bonds.And at the same time, demand for treasuries is robust.
The reality is the world economy can't afford a balanced US budget.
Posted by Orrin Judd at January 18, 2015 8:03 AM
Tweet