How will Fiscal Cliff affect interest rates?
(Senior Chimp, 20
Points)
on 12/30/12 at 3:40pm
How will it specifically affect Treasury Yields? and can it affect LIBOR?
My thinking is that there could be a flight to safety and lower TY. But if there is an increase in debt, it may also increase treasury interest rates.





Well, by theory, FED should
Well, by theory, FED should be cutting rates, but... Negative interest rates?
There are rate decisions this 10th January on Europe, we should see something in Draghi's speech.