On August 10th 2011, the third trading day after the S&P downgrade of the US credit rating, the treasury yields sank to record lows. The 2 year yield hit 16 bps, the lowest ever, 3 year quoted at 31 bps, 5 year yields traded at 92 bps and the 10 year yields dropped to 213 bps, finally breaking below 200 bps 2 weeks later. The treasuries rallied and the stocks crashed after the U.S rating downgrade. The markets experienced crazy…    Read More >>

As I write this article on 9th August, 2011 the total public debt of USA stands at $14, 590, 253, 225, 0662 according to US debt clock, including the $238 billion by which the US debt shot up as soon as the debt ceiling was raised just before August 2nd and at the current rate it is all set to grow to $15 trillion by the time 2011 ends. US debt is already hovering near to 100% of its GDP….    Read More >>