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Geithner comments maul Treasuries

Treasuries are selling off this morning after Treasury secretary nominee Geithner told Congress that the Obama administration believes China is manipulating its currency. China, a key financier of the United States' budget and trade deficits, owns hundreds of billions in Treasury securities. The short-term fear is that a piqued China will dump Treasuries to demonstrate its displeasure. The long-term fear is that China will actually stop manipulating its currency, which has kept U.S. interest rates low, inflation low and Chinese goods cheap.

The yield on the 10-year note (which moves inversely from the price) is up to 2.65 percent this morning. The yield on the 30-year bond popped from 3.22 percent to 3.36 percent.

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