Avast! European debt shivers timbers, hoists 30-yarrr Treasury bonds
Demand for bonds be stronger than the smell of Davy Jones stink-pots, as lily-livered investors scurry like bilge rats from Europe's booty shortfalls, me hearties.
Ahoy! Landlubbers at the US Department of Booty sold $13 billion worth of 30-yarrr bonds at a record low yield of 3.31 percent last week, as investors be weighin' anchor from European marrrrrkets.Skip to next paragraph
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Investors be hangin' the jib over Europe's debt crisis and the volatility of US stocks, seeking refuge in low-risk investments like a bilge rat hidin' in the scuppers. Picaroons and scallywags alike expect the US government this fall to be buyin' long-term Treasury bonds, me bucko.
With the US economy saggin' lower than a becalmed lugsail, the Fed hopes that reducin' long-term interest rates will push investors to spend their doubloons on stocks.
Also drivin' the rush to low-risk investments be a disappointing report on retail sails, showing a drop in consumer confidence, particularly as it pertains to sales of eypatches, parrots, cutlasses, and tricorne hats with feathered trim.