Friday, July 10, 2009

EconNews Roundup

TOBB urges the government to focus on production rather than investment incentives.

The great downward move in Treasury yields: After hitting a historic low of 11.4%, yields are at around 11.50% as of Friday morning. Interestingly, the benchmark-ON premium is still high by historical standards:

Devout readers of my columns and this blog would know that I have been arguing for a couple of months that the risks in yields are upwards rather than downwards. But if I still haven't been able convince you, then I can at least use the picture above to assure you of your conviction that the Treasury rally will continue:)...

Finally, while June primary cash balance seems to have improved slightly when compared to same period last year, June revenues had shifted to July last year, making the June07 figure look much worse than it actually was. Once you adjust for this, the fiscal deterioration becomes much more pronounced.

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