Why doesn't the Govt issue bonds now while rates are so low to pay for the TARP?

Discussion in 'Wall St. News' started by seasideheights, Nov 15, 2008.

  1. Rates on Treasuries are at or near historic lows. Why doesn't the Government start selling the $700b in bonds now to take advantage of the ultra low interest rates they'd have to pay for borrowing costs on the money rather than waiting to sell them in 2009?
  2. vv111y


  3. It's a meaningless statement. Money is fungible - Treasury auction proceeds are used on a first-come first-served basis.
  4. It wasn't my statement.

    I think Rick Santelli on cnbc said it.
  5. Res ipsa loquitor. :)

    The other issue is that demand for long-dated USD Treasuries appears to have weakened considerably. Based on the G20 communique from today, this would appear to be..."non accidental".