Talk about a low interest rate: U.S. Treasury borrows $44 billion for less than 1%

Filed under: Federal Reserve, Recession, Financial Crisis

With more than $23 trillion pumped into the financial system via monetary and fiscal policy in the last 12 months, there's good reason to fear a rise in inflation, particularly if the U.S. Federal Reserve's quantitative easing is not withdrawn in time.

Further, rising inflation accompanied by competition for capital from abroad would invariably lead to rising interest rates in the United States, but so far, higher interest rates have not manifested themselves. One example: The U.S. Treasury this week sold $44 billion in two-year notes for 0.802%, Bloomberg News reported. In other words it borrowed $44 billion for less than 1% -- an astoundingly low rate.

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Talk about a low interest rate: U.S. Treasury borrows $44 billion for less than 1% originally appeared on BloggingStocks on Wed, 25 Nov 2009 18:00:00 EST. Please see our terms for use of feeds.

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