Treasury Yields

Standard and Poor's outlook on U.S. government debt pushed the yield on the 10-year treasury note to 3.354%. Yields on the 30-year note moved to 4.436% and the two-year note yielded 0.653%.

Wall Street Journal, April 20, 2011
A Silver Lining to S&P's Cloud

A Closer Look at U.S. Federal Debt and the Debt Limit

The U.S. federal debt limit was last increased to $14.294 trillion on February 12, 2010. That federal debt limit is expected to be exceeded by mid-May to June and the 2011 ending estimated debt is $15.476 trillion. Federal debt ending 2010 was $13.5 trillion with $4.5 trillion held by government accounts and $9.0 trillion held by the public.

Analytical perspectives from the White House’s Office of Management and Budget website provide further breakdown on U.S. federal borrowing.

Wall Street Journal, April 19, 2011

S&P Cuts U.S. Ratings Outlook to Negative

Rating Agency Changes Outlook on U.S. Debt

Stocks fell following Standard and Poor's announcement of a change in outlook on U.S. government debt. Falling 1.1%, the need for budget cuts and resolution on the debt ceiling was factored in.

Wall Street Journal, April 18, 2011
Release: S&P Cuts U.S. Ratings Outlook to Negative

U.S. Budget Debate

The debate over the U.S. budget will have an impact on the 2012 election. Democratic and Republican party values will be significantly brought to light. Two areas of focus during the debate will be Medicare and Social Security.

New York Times, April 17, 2011
The Budget Debate, Revealed

Consumer Prices and Inflation

The Consumer Price Index increased 0.5% in March pushed up mostly by food and energy prices. The core index, excluding food and energy, increased only 0.1%.

Food costs increased 0.8 percent in March and gasoline rose 5.6 percent in March.

New York Times, April 16, 2011
U.S. Consumer Prices Up 0.5%, Pushed Mainly by Food and Gas

2011 U.S. Budget Bill Approved

The U.S. bill designed to cut $38 billion in spending for the remainder of 2011 was approved by Congress yesterday. The bill is a step toward reining in the federal budget. The U.S.’s next focus will be on next year’s federal budget plan and will have to involve a vote on raising the federal debt limit. Without debt restructuring or a raise in the debt ceiling the U.S. will default on federal debt payments by mid-May.

New York Times, April 15, 2011

Congress Passes Budget Bill but Some in GOP Balk

Germany Calls for Greater Austerity Measures in the Eurozone

Germany has led the way for austerity measures in the Eurozone since Greece requested bailout in May 2010. Their measures do not differ much from the political debates in most countries and call for decreases in spending and benefits as well as an increase in taxes and greater enforcement of tax evasion.

Germany will likely continue to push for increased austerity in the Eurozone and specifically for Greece, Ireland, and Portugal as these measures have already been factored into the aid agreements for these three countries.

New York Times, April 15, 2011

Resentment Is Rising In Euro Zone