- U.S. treasury debt is a safe investment
- U.S. rates may rise after QE2 ends, leading to small losses for U.S. debt holders
Laurence Lau, head of the Hong Kong office of China Investment Corp has said “U.S. treasuries are safe investments, and the U.S. government will pay back its debts, there is little concern about that. But for the U.S. dollar, there is a bit risk of depreciation.”
Now I’ve copied what he said word for word. Did he actually say there is a bit of a risk of depreciation or is bit a typo and should actually read big. Maybe we’ll never know, or care very much for that matter.
Market seems to have taken no notice, EUR/USD about 10 pips lower since my arrival, presently at 1.4215.
