The remark comes as the US government shutdown over fiscal spending drags on and market participants increasingly sound warnings over the dollar’s fate.
US bond yields have reached the highest level since 2007. Interestingly, in a break from tradition, gold and crude prices are also rising along with the yields, thanks to the global geopolitical uncertainties.
The paradigm has shifted. Higher yields are back
US may soon find itself in a world of persistent 3 percent inflation, above the typical 2 percent target rate stated Ackman
The 10-year Treasury yield fell to a record low of 0.695 percent and was last down 16 basis points (bps) on the day.
Minutes of the Fed's October 29-30 policy meeting, released on Wednesday, also showed officials discussed how to distinguish between asset buying and forward interest rates guidance, including how to enhance rate guidance once they start to taper bond purchases.
India lowered its exposure to the US government's debt by USD 6.3 billion (over Rs 30,000 crore) in 2011, even as a few countries like Japan, France, Brazil and the UK enhanced their holding of US treasury bonds.
Italian police said on Friday they had seized about USD 6 trillion of fake US Treasury bonds in Switzerland, and issued arrest warrants for eight people accused of international fraud and other financial crimes.
Gold rallied almost 2% to a record near USD 1,900 an ounce on Monday as a sputtering global economy boosted expectations for further monetary easing, raising bullion's appeal as a hedge against inflation.
Richard Gibbs the global head of Macquarie Securities, in an interview on CNBC-TV18 gave his take on the US Fed’s QE3 programme and what he made of the S&P’s warning to the States.