April is shaping up to be a big test for the bond market there could be a sharp rise in the bond yeilds if the fed fails to help the US treasurey (we all know they will) Next week alone there is $80 billion of bonds on offer lets hope they find the buyers. The market just keeps demanding higher interest rates for three reasons. No 1: sovereign debt fears.(now at 12.76 trillion dollars) No 2: the massive budget deficit. No 3: inflation fears starting to emerge this week. All these reasons will drive Gold higher if the FED keeps rates near zero.
The link: http://sify.com/finance/analysis-weight-of-u-s-bond-supply-just-starting-to-strain-news-economy-kebl4cjhgjd.html
"The growing U.S. debt has cast a shadow over bonds for months, but bidders have only recently shown signs of weariness, with market disruptions and rising economic optimism contributing to dreadful Treasury auctions last week.
The trouble will only intensify if predictions come true of a strong payrolls report on Friday."
The US debt clock:(look at US gov interest) http://www.usdebtclock.org/
More on inflation: http://www.reuters.com/article/idUSNLL2FE63R20100402?type=marketsNews
