Gee, who couldn't have seen this coming? For more on why the US Treasury will, of course, raise rates, please listen to our 8th of June pod covering the sell-off of TBills by the Chinese gubment. They know that the US Dollar is going to fall even more, despite the blather being spouted by the pop media. This is a certainty. Why would anyone want to buy bonds that will pay back in worthless Dollars? As a result, the Treasury will be forced to have to offer higher interest rates, which will, in turn cause problems between it and the FED and the Fed's policy of easy money. Buuuut, the Fed is going to engage in a third round of backdoor inflation simultaneously to the Treasury, which will be "Quantative Easing 3", of the further purchase of US TREASURIES by the Federal Reserve. SO while the Chinese are smart enough to bail on US Treasuries, the FED? Not so much.

http://www.washingtontimes.com/news/2011/jun/7/lack-of-buyers-may-force-...

Be Seeing You!