In light of the flood of government debt to finance budget deficits from the U.S. and Europe, demand for interest rate products that market participants use for hedging or speculation could outstrip our current forecasts.
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Entrepreneurs and internal managers are constantly evaluating their environments and assessing the growth prospects and their bottom-up evaluations merge up into the financial markets in either higher demand for growth capital (causing higher real interest rates) or lower demand (causing lower ones) for capital.
Paradoxically, the very effect of the austerity they oppose has been to reduce the Greek deficit to a point where - if Syriza's demand for a moratorium on interest payments were to happen - they could balance their books.
One obvious reason for the softer iPhone 5 demand: huge demand for Samsung phones, and a growing interest overall in Android phones with extra-big screens.
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What that ultimately means, in theory, is that less demand for a currency means higher interest rates in the future in order to attract people to it.
The fear is that this might lead to higher inflation, and that the government's demand for funds will push up interest rates, crowd out private investment, weaken the financial system and leave the economy vulnerable if hit by a big macroeconomic shock.
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Demand for houses has weakened because rising interest rates made them less affordabile, the RICS said on its Web site earlier this week.
Beyond pushing out debt maturities last year, high yield borrowers in 2012 saw a decline in their interest rates as demand for their bonds rose.
For investors holding bonds yielding 9%, lower rates will mean that demand for access to those 9% interest payments will drive bond prices higher as the market moves to equilibrium with current rates.
As some confidence surrounding the economy and prospects of individual firms as begun to build, companies have found it easier to issue debt at low interest rates as demand for their bonds has been strong.
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The Hall-Sargent calculations show that almost all of this inflation tax was borne by those who held bonds with a maturity of five years or more. (That is because investors in short-term bonds could more quickly demand higher interest rates to compensate for inflation.) The trick is harder to repeat today.
For bankers, a more worrying consequence of rising interest rates is that they have dampened demand for the mortgages and refinancing that have underpinned their profits in recent years.
Any such move would likely see interest rates rise and demand for bonds, particularly Treasuries, fall.
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Unfortunately, in our present low interest rate environment the demand for income producing products is high.
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Both Brazil and China are likely coming to the home stretch of their tightening cycle, meaning an end to raising interest rates to cool demand for credit.
With Europe in a more stable position and strong demand for credit risk amid the continuing low interest rate environment, inflows are set to continue, driving spreads tighter again, sources suggest.
The higher interest rates began cooling demand for auto loans in March, and expectations are that the economy will begin to slow from the 5.5% gain in the last 12 months ending March 31.
But Argentina has not been able to borrow in the markets for years, because investors demand punishing interest rates and because it is still mired in legal battles with the holdouts from its 2001 sovereign default.
The Revenue did not demand interest from the other 21 companies for the period pre-2005.
As the state sells its exposure, its interest in maintaining Americans' demand for cigarettes will fade.
At the extreme, the demand for cash is so strong than not even interest rates at zero can get the economy moving.
Long bonds usually have higher coupons than short ones, as investors demand a premium for exposure to the risk of interest-rate rises and inflation.
Tightened state budgets and a decline in donations have further stretched resources for the public interest firms, forcing them to make staff cuts at a time when demand for their services is greater than ever before.
The possibly sharp increase in nominal interest rates would tend to reduce demand for base money.
And by reducing the currency-risk premium that investors demand for holding kiwi dollars, it would lower real interest rates.
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All of which points to more demand ahead, and probably to the need for higher interest rates sooner rather than later.
But it won't work, says Fair, because the falling dollar eventually will increase inflation (Saudi Arabia will demand more dollars for its oil) and drive up interest rates and therefore the cost of servicing the debt.
Increased demand for U.S. bonds could further drive down interest rates in this country.
And in a more inflationary economy, lenders will demand, and get, higher nominal interest to compensate for the erosion of purchasing power.
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