The bonded markets worry about the American public deficits

The 1000 billions of dollars that the Treasure should raise weigh on the rates.

Nothing gets lost, nothing creates itself. The happiness of the some made the misfortune of the other on the financial markets. The lightning resumption to Wall Street Friday, and more again in Europe, came with a fall just as brutal on the loans of state. The outputs on the Treasury Springings to 10 American years won 35 points of basis (0,35%), to 3,79%, what resulted mechanically in a loss of 3% on the value of the bonded wallets of this maturity.

In Europe, the movement was also very strong, the Bundses 10 years of the German state, the leading loan of the zone euro, taking 21 points of basis, with for consequence a loss of 1,68% on the capital of the existing titles. It is necessary to go back up to 1981 to recover variations of this amplitude. Such hunt-crusaders between the actions and the bonded titles are classic, except that their violence is practically without precedent. The rates to 10 years continued to stretch itself/themselves slightly yesterday (passer-by to 3,88 in the middle of the day in New York).

Good news, the deterioration of the bonded market translates a least aversion of the investors for the risk. " From the moment where one purchases some actions, it is normal that positions on the bonded market unbuckle themselves", explain Guilhem Savry, of the Natexis bank. During all the summer, where the Stock markets played the yo-yo, the markets of the state titles served as shelter. To the United States, the Springings to 10 years saw their output thus to pass from 4,30 to 3,44%. The subsidence was of comparable size in Europe.

The orgy of saving of the emergent countries

Bad news, the brutal ascent of the bonded rates expresses the deterioration to come of the public finances of the United States. Such is going to be the automatic ransom of the renflouement of the banking sector and the real estate market. To them only the 700 billions of dollars that the Treasure will dedicate to confine the debts rotted of the hypothecary market represent 5% of the yearly GDP. To it the lines of guarantee are added in favor of Bear Stearns, of Freddie Mac and Fannie Mae, of AIG, of the monetary funds, without forgetting the recapitalization of the federal reserve Bank for which the Treasure is going to raise 100 to 150 billions of dollars of loans,. To the total, the debt of the federal state is going to become heavy of at least 1 000 billions of dollars. With such needs, how the price of money could he/it stretch himself/itself for a long time?

"  Not of the all. It is necessary to replace these numbers on the world balance of the saving", esteem Fran?ois Chevallier, economist of VP Finance. He/it recalls that since the beginning 2000 the needs of financing of the American federal state increased of 1 700 billions of dollars whereas the reserves of change of China, Korea and Russia increased 2 500 billions of dollars. The orgy of saving of the emergent countries must be able to finance the renflouement of Wall Street.