Alan Greenspan said nothing is stopping the U.S. from getting sucked into the global trend of negative yielding debt, Bloomberg reported Tuesday.
"There is no barrier for U.S. Treasury yields going below zero. Zero has no meaning, beside being a certain level," Greenspan told Bloomberg on the phone.Former Federal Reserve Chairman Alan Greenspan said nothing is stopping the U.S. from getting sucked into the global trend of negative yielding debt, Bloomberg"There is international arbitrage going on in the bond market that is helping drive long-term Treasury yields lower," Greenspan said in a phone interview.
. As uncertainty reigns, investors are looking for a safe haven for their money, even if it means getting back less than they gave. "Why people continue to buy long-term Treasurys at such low yields may be also due to forces having altered people's time preferences," Greenspan said. "But there is hundreds of years of history showing the long-term stability in time preference, so these changes won't be forever."
Greenspan, who chaired the central bank from 1987 to 2006, said nothing is standing in the way of the U.S. breaching the zero level., which nearly inverted with 2-year Treasury note, a historic recession indicator. Weaker economic data domestically and abroad also pressured the Federal Reserve in July to cut interest rates for the first time since the financial crisis.said last week
that "U.S. Treasuries – which many investors view as the ultimate 'safe haven' apart from gold – may be no exception to the negative yield phenomenon. And if trade tensions keep escalating, bond markets may move in that direction faster than many investors think.""If recession risks were realized, the need for substantial additional policy support would likely push the Fed towards NIRP," the bank wrote.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
US yield curve at flattest level since 2007 amid risk-off sentimentMarket focus is largely attuned to selling in regional markets, after protesters forced Hong Kong's main airport to cancel all flights on Monday.
Consulte Mais informação »
Climate campaigner Greta prepares to sail to the U.S. to avoid flyingSwedish teenage climate activist Greta Thunberg will set sail for New York this ...
Consulte Mais informação »
‘This Is Us’ Star Chris Sullivan on Dressing ‘Very Loudly’ and Challenging Gender Norms“This Is Us” star Chris Sullivan loves bright colors, playful patterns and challenging gender norms: “I’ve always dressed very loudly,” he says. 2016 “The goal for me, alway…
Consulte Mais informação »
Top U.S. lawmaker demands answers in Jeffrey Epstein's deathA top U.S. lawmaker joined the chorus of officials demanding answers from the Bu...
Consulte Mais informação »
African Americans underserved by U.S. banks: studyMany African Americans have difficulty accumulating savings in part because they...
Consulte Mais informação »