RateAPY

Selling Debt Is a Killer for Treasuries

Posted by: RateAPY Bank Rates News
December 30th, 2009

A deluge of debt hit the market this year, seriously weakening the supply-to-demand ratio of U.S. treasuries. The year 2009 could end up being the worst for treasuries since 1978, caused by the deepest recession in more than sixty years. Government debt has lost 3.6% this year, due to too much supply to maintain attractive pricing. As of November, U.S. saleable debt amounted to $7.17 trillion, up from $5.8 trillion about a year ago at this time.

Interest Rates in 2010

Your savings accounts, money market accounts, and certificates of deposit are expected to pay higher returns in 2010 as interest rates increase. An increase in interest rates is a near certainty for 2010 because of the over-supply of money in the market used to stimulate the economy. Banks are competing for your savings deposits. Shop for the best rates on savings accounts, money market accounts and certificates of deposit.