Billionaire 'bond king' Jeff Gundlach warns the US government's borrowing binge could lead to 'fatal' negative interest rates
Billionaire "bond king" Jeff Gundlach sounded the alarm on the US government's aggressive borrowing in a"The pressure to go negative on Fed Funds will build as short term borrowing explodes and dominates," Gundlach said. "Please, no. Rates < 0=Fatal."
Gundlach tweeted after the US Treasury announced it would relaunch its 20-year note this month, as it seeks to borrow $3 trillion to fund its anti-coronavirus stimulus efforts.Billionaire "bond king" Jeff Gundlach warned that the US government's borrowing binge could push interest rates below zero and cause immense economic damage"These Trillions Treasury is borrowing is heavily in T-Bills," Gundlach said, referring to Treasury bills, a form of short-term government debt.
"Yet the pressure to go negative on Fed Funds will build as short term borrowing explodes and dominates," he continued. "Please, no. Rates < 0=Fatal."to fund the government's stimulus efforts in response to the coronavirus pandemic, and that could heap pressure on the Federal Reserve to lower interest rates below zero.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Here are 14 of the best quotes from notorious billionaire bond king Jeff Gundlach | Markets InsiderBillionaire bond investor Jeff Gundlach is not just known for his legendary bond investments. The bond king, and founder of DoubleLine Capital,...
Lire la suite »
U.S. Treasury launches 20-year bond to help finance record borrowingThe U.S. Treasury Department said on Wednesday it will launch a long-planned 20-year bond and increase securities auction sizes across a range of maturities to raise cash to meet record government borrowing needs caused by the novel coronavirus outbreak.
Lire la suite »
Bond-buying risks could outweigh rewards for emerging central banksEmerging market central banks are launching asset purchase programmes to help mitigate the economic impact of coronavirus, a fresh test of unconventional policy tools that were only adopted by developed economies a decade ago.
Lire la suite »
Bank of England holds interest rates and by 7-2 margin doesn't increase bond purchase programThe Bank of England decided unanimously to keep interest rates at 0.1% and opted by a 7-to-2 margin to hold its quantitative easing program at £200 billion....
Lire la suite »
Donations flood in from Ireland to Navajo Nation in repayment of centuries-old bond“When Ireland was in need you understood what Solidarity really looked like,” read a message from Alan Hopkins, along with $20.
Lire la suite »
Small Investors Ruled the Municipal-Bond World for a Few Days in MarchMunicipal-bond purchases of $100,000 or less surged in mid-March as the coronavirus crisis prompted big money managers to dump billions of dollars in bonds.
Lire la suite »