Soaring interest rates on Italian government bonds over the last five weeks show how quickly the market can send a powerful message to debtor nations: You've borrowed enough. So where is that market comeuppance for the U.S. Treasury, the world's single largest debtor, with nearly $15 trillion borrowed?
The LA Times' Blog writes that it now appears that the congressional "super committee" set up to rein-in the government's massive deficit spending could fail to arrive at an agreement by its Nov. 23 deadline. Yet that seems unlikely to trigger a surge of selling in Treasury bonds that would drive up interest rates from their current near-record-low levels.
As I note in my weekend column in The Times, the U.S. is benefiting from Europe's unrelenting debt crisis by looking like the best house in a deteriorating neighborhood. And there are other factors as well that are likely to hold U.S. bond yields down for the time being….
Learn more at http://latimesblogs.latimes.com/money_co/2011/11/us-treasury-bond-yields-deficit-super-committee-deadline-europe.html
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