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
Paradise city: DHA City masterplan unveiled to real estate agents
By Saad Hasan
KARACHI: On Wednesday at exactly 10 am, the master plan for the Defence Housing Authority (DHA) City Karachi or DCK was revealed to real estate agents and investors.
The residential project is located 56 kilometres from the city and is being constructed at the cost of one billion dollars. It is spread over 11,640 acres of land and will be self dependent for water and electricity – at least when the first batch of owners build their houses in the next four years.
While referring to the 25,000 plots sold in 2010, DHA Administrator Brig. Aamer Raza Qureshi said that by going public with the master plan, he hoped that the people would start paying up their installments. He added that they still hadn’t received around 30% of them. The project is expected to attract a total investment of over three billion dollars ….
Read mroe » The Express Tribune
By Paul de Bendern and Jui Chakravorty
NEW DELHI/ MUMBAI (Reuters) – India’s reputation as a place to do business took another hit after the scandal-tainted government charged top public sector bankers with accepting bribes initially estimated at hundreds of millions of dollars.
The scandal is one of the biggest to taint India, potentially harming the image of Asia’s third-largest economy as destination for foreign investors, especially as it comes a few days after Prime Minister Manmohan Singh has had to defend his government in another graft scandal involving telecoms licences sold at rock-bottom prices. …
Read more : Reuters