U.S. Treasuries Riskier Than German Debt, Default Swaps Show

Discussion in 'Wall St. News' started by rougebear, Mar 11, 2008.

  1. rougebear

    rougebear

    The Private Bank Federal Reserve (not part of the US Govt.) will fuck US taxpayers.

    By Abigail Moses

    March 11 (Bloomberg) -- The risk of losses on U.S. Treasury notes exceeded German bunds for the first time ever amid investor concern the subprime mortgage crisis is sapping government reserves, credit-default swaps prices show.

    Contracts on 10-year Treasuries traded at a record 16 basis points earlier today, compared with 15 basis points on German government notes, according to data compiled by BNP Paribas SA. In July, U.S. credit-default swaps were at 1.6 basis points, compared with 2.5 basis points on bunds.

    Federal Reserve Chairman Ben S. Bernanke announced plans today to lend as much as $200 billion of Treasury notes in exchange for debt including private mortgage-backed bonds to avert an exodus from the securities that threatens to deepen the housing slump and economic slowdown.

    ``The U.S. government is not immune from the consequences of the credit crisis,'' said Fabrizio Capanna, BNP's head of high-grade corporate trading in London. ``Support for troubled financial institutions in the U.S. will be perceived as a weakening of U.S. sovereign credit.''
    http://www.bloomberg.com/apps/news?pid=20601087&sid=aVl4JGYmkX0M&refer=home
     

  2. 200 bn USD ???? Peanuts ! :)