In the bond market, U.S. Treasury bonds
fell as yields rose.
A steep sell-off in U.S. Treasury bonds
that started midweek and pushed 10-year yields to seven-year highs has weighed on stocks and rippled through bond markets globally.
Quantitative easing, or the Federal Reserve's strategy of buying up U.S. Treasury bonds
and mortgage-backed securities to drive down long-term interest rates, makes it relatively inexpensive to borrow, especially for banks, institutions and private companies.
U.S. Treasury bonds
, due to their security, gauge interest rates by setting the interest rate floor of financial markets.
According to research from the University of California-Davis, premium rates are actually tied to the rise and fall of the Dow Jones Industrial Average and interest rates on U.S. Treasury bonds
. Using information from the U.S.
The UAE central bank does not hold any U.S. treasury bonds
or government financial instruments, it said in July.
interest rates, which pushed up the value of Japan's holdings of U.S. Treasury bonds
, a ministry official said.
A point to keep in mind: In 1984, foreign entities owned 22 percent of U.S. Treasury bonds
; today, foreign entities own 57 percent of U.S.
said, "Commercial Defeasances' ability to think beyond the ordinary, specifically to find higher yielding securities than run-of-the-mill U.S. Treasury bonds
and traditional agency debt, saved us a substantial amount of money."
U.S. Treasury bonds
fell in the wake of the decision while the dollar held steady and stock markets were mixed
There was a spread of 85 basis points (0.85 percent) between these ten-year ROK bonds and U.S. Treasury bonds
, approximately 5 basis points lower than the bonds issued last year.
Foreign central banks, which hold more than half the outstanding stock of U.S. Treasury bonds
, have become the principal source of finance for the federal government's burgeoning fiscal deficits--about 4 percent of GDP in 2004.