Tuesday, December 22, 2009
China = US?
"China sold its first 50-year government bond, a move that expands its domestic debt market and places the country in a small league of nations that have issued ultralong-term sovereign debt. ... The bond sale wasn't primarily about raising money. China's government has a healthy fiscal position and ample access to capital. Rather, it is part of China's efforts to make its government bond market a better pricing benchmark for corporate debt sales as the country's economy--and firms' hunger for cash--continues to expand. ... China's 30-year bond was yielding 4.20% Friday", Wang Ming, WSJ, 28 November 2009: http://online.wsj.com/article/SB10001424052748703499404574561000146649002.html.
30-year US Treasuries yielded 4.20% on 27 November 2009. China appears to be as good a credit as Uncle Sam.