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.
Everyone in Mexico is buying euros due to this .
Negative rates in US treasuries are question of weeks or months.
Trump was begging for negative rates before all of this
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
Källa: Reuters - 🏆 2. / 97 Läs mer »