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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (72294)1/31/2010 4:27:44 PM
From: Haim R. Branisteanu  Respond to of 74559
 
If the interest rates on Gov bonds and notes would reflect the "true risk" of owning sovereign debt and ability to cover it than interest rates would not be as they are in the table below. I found it amazing that the US 2 year note has a yield of 0.816% and Italy more than twice as much - 1.933 Even Germany Bunds are priced by around 36% lower than the same US notes. How about France? why they pay a hefty premium of 43% Any comments?

Oh well perception - or is it snake oil sold by our prominent WS bankers which this administration hold in such high regard!!

I think this make sit clear why US statistics are "annualized" and in most cases overstate the health of the US economy - it pays to lie - results in lower interest rate expenses on government debt



2-Yr Benchmark Govt Yields - U.S. vs Other Nations
 
              Current     --------------  Spread in Basis Points  ----------- 
               Yield       Today   Prev Day   Week Ago   Month Ago   Year Ago 
 
U.S.          0.816 % 
Australia     4.195 %      337.9      337.1      355.8       336.7      146.1 
Austria       1.594 %       77.8       75.3       81.7        69.1       56.3 
Belgium       1.423 %       60.7       59.9       66.0         3.3       55.2 
Canada        1.330 %       51.4       51.2       38.1        33.5       47.3 
Denmark       1.900 %      108.4      107.6      106.0       103.0      167.9 
France        1.171 %       35.5       34.7       21.2        16.2       72.3 
Germany       1.114 %       29.8       29.0       31.1        23.7       57.8 
Italy         1.933 %      111.7      110.9       88.1        47.4      144.3 
Japan         0.165 %      -65.1      -65.9      -62.7       -94.1      -49.7 
Netherlands   1.177 %       36.1       35.7       -8.3       -18.6       89.8 
Portugal      2.300 %      148.4      147.6       82.8        30.3      104.5 
Spain         1.730 %       91.4       90.6       72.8        49.0      141.5 
Sweden        1.620 %       80.4       74.6       77.8        62.5       52.7 
U.K.          1.242 %       42.6       44.7       45.0        26.6       54.4 
 
Source: Thomson Reuters


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