Worsening US debt outlook seen more in gold and bitcoin than in bonds

April 19 - Concern about the rapidly rising U.S. government debt is partly behind recent surges in gold prices and bitcoin, even as the Treasury market so far remains relatively sanguine about the country's fiscal path, market observers say.

This worsening trajectory has boosted demand for bitcoin and gold, which are often used as a hedge against inflation and the depreciating purchasing power of the U.S. currency. Yields in Treasury debt largely reflect expectations of Federal Reserve interest rate policy. At times they are swayed by increases in debt supply, though the longer-term fiscal trajectory is less of a factor in the market.

“There’s interest in both gold and bitcoin because of that, because inflation’s been unsteady in the last couple of years,” said Lawrence H. White, professor of economics at George Mason University. The gold surge is also being driven by expectations of central bank rate cuts and purchases by foreign central banks diversifying their reserves. This is partly due to inflation concerns, and also a way to protect against possible U.S. sanctions in a geopolitical dispute.But the rapidly worsening U.S. fiscal situation remains a key driver for some investors.

So far, however, several Treasury market indicators show that bonds are not pricing in a worsening fiscal outlook, said Nicholas Colas, co-founder of DataTrek Research.

Source: Digital Coin News (digitalcoinnews.net)

Gold Silver Platinum Palladium PGM Platinum Group Metals Metals Precious Metals Mining News Crypto News Bitcoin News Ethereum News Mining News Interviews Economic Reports Forecasts Central Banks US Dollar Charts Tech Metals Rare Earth Metals Currency Global Economy International Policy Politics Bank Forecasts Market Nugget Mining Minutes Roundups

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Worsening US debt outlook seen more in gold and bitcoin than in bondsThe U.S. budget deficit widened to $1.7 trillion in fiscal year 2023 and is on track to reach $2.6 trillion by 2034, according to the Congressional Budget...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Worsening US debt outlook seen more in gold and bitcoin than in bondsExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Worsening doctor shortage taking toll on hospital resources'The growing gap in primary care access will certainly have an impact': Sault Area Hospital CEO says organization bracing for potential deficit in 2024-25
Source: SooToday - 🏆 8. / 85 Read more »

Team of Ottawa paramedics using Suboxone to respond to overdose calls amid worsening toxic drug crisisThe medication is a combination of buprenorphine and naloxone, and in conjunction with the overdose reversal kit, can reduce withdrawal symptoms and protect people from another rebound overdose
Source: globeandmail - 🏆 5. / 92 Read more »

Russia says no intention of conflict with NATO despite worsening relationsRussia-NATO relations are worsening but Moscow has no intention of entering a conflict with a NATO country, Russian Deputy Foreign Minister Alexander Grushko said in an interview published on Thursday.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Black Canadians’ economic disadvantage is worsening – here’s how to fix itA new census-based study shows this distinctive Black disadvantage in Canada has worsened – labour market success fell short of expectations
Source: globeandmail - 🏆 5. / 92 Read more »