SubscribeKoreans to sell US Treasuries
A rally that sent U.S. Treasuries to their best year since 1995 is coming to an end, South Korea’s National Pension Service, the country’s biggest investor, said.
U.S. government efforts to combat the recession will prompt the Federal Reserve to raise interest rates this year, said Kim Heeseok, who oversees $160 billion as head of global investments for the service in Seoul. The decline would snap a surge that sent the securities up 14 percent last year, according to Merrill Lynch & Co.’s U.S. Treasury Master index, as investors sought the relative safety of debt.
“It’s time to sell U.S. Treasuries,” said Kim, who took over as head of investments at the start of the year. “The stimulus plan may cause inflation. The U.S. will raise the benchmark interest rate.”
My comment: More and more people are advocating selling Treasuries, I wonder why? The "stimulus may cause inflation"? I am sure that if Obama tries to run $1 trillion dollar deficits each year while productive capacity shrinks there will surely be inflation.
John Polomny
The Real Deal
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