Overseas, Jean-Claude Trichet, head of the European Central Bank, said he welcomed the pledge of European leaders to publish the results of their stress tests on banks and indicated that the need to buy troubled government bonds in order to calm markets appears to be diminishing.
Thus someone needs to be buying lots of bonds in order to keep prices up and yields down, to stop this death spiral happening.
Just as a poor credit risk has to pay banks a higher interest rate on loans, so a company or government that is a poor credit risk has to pay a higher yield on its bonds in order to entice investors to buy them.
Under the asset purchasing programme the central bank buys bonds in order to keep the long-term cost of borrowing down.
In essence, Asian governments are buying American Treasury bonds in order to ensure that Americans can afford to keep spending money on Asian goods.
In May and early June the Fed hinted strongly that it might buy Treasury bonds in order to push down yields and so ward off deflation.
It recommended the European Central Bank should cut rates and increase its purchases of government bonds in order to to limit the cost of borrowing for governments.
The Ethiopian government is issuing bonds and the population, all 85 million of us, are buying bonds in order to chip in to this huge Nile project.
The implication is that the European Central Bank should stand behind Spanish government bonds in order to prevent a bail-out, and that Mrs Merkel should publicly back Spain.
The problem is that as yields approach those sorts of levels then people will be selling the bonds in order to avoid having to increase the margin payments that must be made.
States such as New York would suddenly find themselves in competition with all other states and be subject to the same interest costs in order to sell their bonds.
But they will also encourage people to shift savings from bank deposits and bonds into the stockmarket, and even to borrow money in order to buy shares.
Italy has just had to pay 597 basis points (ie, 5.97%) above base rate in order to sell its bonds.
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The best yielding funds use leverage and borrow at very low short-term rates in order to buy more bonds to increase their yields.
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He is talking about the risks that many investors face as they pile into bonds with longer durations, in order to pick up extra yield.
Market analysts say that Kuala Lumpur may have offered the generous price in order to move the bonds in a difficult market (which at that time was nervous about Latin America and U.S. interest rates).
But if those cash reserves are offshore, and bringing them back would spark a corporate income tax bill, it might be that the bonds have been issued domestically in order to get money that can be used domestically.
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That's the big picture: how much to have in stocks, how much to have in bonds, and how much you have to cut back your spending now in order to get by in retirement.
In order to stoke domestic demand for the bonds, the government announced a loosening of monetary policy in April, cutting the bank reserve requirement and interest rates.
So, in order to try to capture another tenth of a percentage point of return, it may invest in bonds or commercial paper that carry additional risk.
In August last year, the Supreme Court upheld SEBI's 2011 order directing Sahara to repay its bond holders as it had flouted capital market rules while issuing the bonds.
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