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.

3 comments:

American Delight said...

It's time to let Japan re-militarize. Clearly, we've lost the will to counter Chinese power, so it's time to let somebody else do it.

Anonymous said...

Or learn to speak Chinese.

Independent Accountant said...

Anonymous:

Don't laugh. I expect China to the world's leading economic and military power by 2070. Learning Chinese is not a bad idea at all.

IA