Canadians trimming food budgets in face of higher prices, RBC says

Bank report suggests as much as 91 per cent of Canadians plan to cut back food spending.

By Allison Brogan, CBC News

Canadian families are planning to cut back on the amount they spend at the grocery store in the face of rising food prices, a new report from one of Canada’s largest banks said Thursday.

The RBC Canadian Consumer Outlook Index showed Canadians’ are displeased with rising food prices at the grocery store.

As much as 91 per cent of respondents to the survey said they have taken notice of rising food prices and are being more budget oriented as a result.

Read more » CBC
http://www.cbc.ca/news/business/story/2013/05/16/business-rbc-food.html

U.S. Bonds Cheapest Since 1990

U.S. Bonds Cheapest Since ’90 Versus Bunds Counter Buffett

By Cordell Eddings

The longest decline in Treasuries this year has left U.S. government debt the cheapest since March 2011 when measured by real yields and the best relative value compared with German bunds in more than two decades.

After inflation, 10-year U.S. notes yielded 0.91 percent last week, or 1.77 percentage points more than real yields on U.K. gilts, the widest spread in 25 months. Versus Germany, the securities are the least costly in 23 years when adjusted for the recent record-low interest rates around the world that distorted the normal relationship, according to FTN Financial.

Federal Reserve Chairman Ben S. Bernanke is counting on Treasuries to contain borrowing costs as the central bank buys $85 billion a month in securities to sustain the economic recovery that lifted U.S. consumer confidence to the highest in almost six years. The better relative yield for U.S. bonds may help bolster demand even as Warren Buffett said this month that he pitied fixed-income investors because of about record-low interest rates.

Read more » Bloomberg
http://www.bloomberg.com/news/2013-05-19/u-s-bonds-cheapest-since-90-versus-bunds-counter-buffett-pity.html