Excerpt from: Spot Forex
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| December 08, 2008 | | Spread bets and CFDs on U.S. Treasures | Spread betting and contracts for differences on the U.S. bond market should consider that bonds are becoming quite popular around the world. Many people, companies and countries are buying up U.S. bonds as the global recession makes U.S. government debt more popular.
And this could be a good thing for the U.S. economy. As U.S. Treasuries rise in popularity -- with more people buying them, the yield will drop. A lower yield means that borrowing costs will not be driven up by all of this excitement over U.S. bonds.
For those who subscribe to the school of thought that we need to spend our way out of recession, this could be a very helpful thing. It means that the government can continue on its borrowing binge without driving up the cost of debt. This will be essential if the U.S. government decides to go with a new stimulus package of $1 trillion (or more).
It looks like it might work.
| Topic Tags: CFDs, contracts for differences, spread bets, spread bets Treasuries, spread betting, spread betting bond market, U.S. bond market, U.S. government debt, U.S. Treasuries | |
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