Tag Archives: US Government Shutdown

Who Invests in the US Treasury? What Impact did US Shutdown have on Other Countries?

Historically, investors bought US treasuries on account of following reasons: Stable political system Possible favorable returns Dominance of dollar as a global currency Known as the largest treasury market in the world Higher  liquidity It is known that the other bond markets trade against the benchmarked US Treasury rates.  In addition to above mentioned reasons, there are many other reasons to invest in US treasury.  For example, China buys US bonds to depress or reduce the value of Read more [...]

What is Meant by US Government Shutdown – US Shutdown of 2013 & Its Impacts

The United States Federal Government declared a nationwide shutdown on the 1st October, 2013, on account of failure to enact regular appropriations or a continuing resolution for the 2014 fiscal year.  Due to this as many as 800,000 federal employees were forced to take leave indefinitely without pay.  Approximately 1.3 million without immediate salary had to report to work.  Previously, in 1995-96 the US Government went in for shutdown.  Several questions arise in the mind of a layman.  The Read more [...]