Crossing Over! 12M Treasury Yields Now Exceed China’s 12M Yields

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

(Bloomberg) Here’s another reason Donald Trump is “not at all happy with the Fed” and will continue to be frustrated by the world’s No. 2 economy. He is the first president to suffer the new normal of China becoming more creditworthy than the U.S. That’s right: America now pays more to borrow money than China does.

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Since 2015, when the Federal Reserve began raising interest rates, the gap between the countries’ Treasury bills has narrowed and then reversed, so that now the U.S. must offer higher yields than China when it sells one-year paper. That happened for the first time in November, when the spread between Chinese and American 10-year notes also collapsed, according to data compiled by Bloomberg.

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To be perfectily fair, one cannot blame years of fiscal mafeasance by Congress and former Presidents on Trump. Democrats in Congress are a big offender in over-spending derby in DC.  And big government Republicans too.

It is interesting to watch as 30-year mortgage rates fall as Europe and China PMI continue to cool.

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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