Sunday, February 19, 2012

Treasury Bonds

The Treasury bills are usually one of the few places less risky and more stable for investors. Most of these investors are usually notcomfortable with the stock market standard. While the Treasury bonds have lower yields, but it was long to be reliable. This dilemmahas prompted the recent economic citizens even more interested to buy a stake in the market for Treasury bonds. This is called the increase in the purchase of Treasury bonds a bubble, and is based on the fear of market direction, rather than greed. The question is:how long will it continue to bubble?
We must first understand what caused the bubble in Treasury bonds.In an attempt to stimulate the market and get the engine of the economy of movement, provided the Federal Reserve and the Treasury were higher than expected (or safedose of stimulusdollars. Combine that with the lowest level of incredible stock market,and heavy losses in many of the investments that people have experienced in the past two years and you have changed the situation for Treasury bonds from under to over-pricing.

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