CNN reports
U.S. markets slipped Tuesday on banking concerns and as traders also faced up to expected rises in government debt. Government debt prices fell as the nation watched Barack Obama become the 44th U.S. president.
With the government deficit already exceeding $1 trillion, the rescue plan that Obama has been touting will mean the government auctioning off a tremendous volume of debt -- which makes government bonds unattractive.
Sinking bond prices are "a reflection of the massive stimulus plan in effect and the likelihood that there is more coming down the road, and the concerns how we will pay for all of this," Kim Rupert, fixed income analyst at Action Economics, told CNN Money.
Stocks slumped Tuesday as the global banking crisis and a spate of weak earnings highlighted the general plight of the U.S. economy. [...]
U.S. markets slipped Tuesday on banking concerns and as traders also faced up to expected rises in government debt. Government debt prices fell as the nation watched Barack Obama become the 44th U.S. president.
With the government deficit already exceeding $1 trillion, the rescue plan that Obama has been touting will mean the government auctioning off a tremendous volume of debt -- which makes government bonds unattractive.
Sinking bond prices are "a reflection of the massive stimulus plan in effect and the likelihood that there is more coming down the road, and the concerns how we will pay for all of this," Kim Rupert, fixed income analyst at Action Economics, told CNN Money.
Stocks slumped Tuesday as the global banking crisis and a spate of weak earnings highlighted the general plight of the U.S. economy. [...]