A new Reuters report Obama pays more than Buffett
shows that medium term treasury have higher yields than corresponding debt from most credit worth companies, including P&G, Johnson & Johnson, and Berkshire Hathaway and the Royal Bank of Canada.
Now the difference is tiny only a 3 or so basis points, but it is pretty much unprecedented. I think the bond market has it right. If I was an international investor my confidence that Progter & Gamble or Johnson & Johnson would pay me back my in money in 30 years is much higher than Uncle Sam. What is surprising is that the rates are even lower for short-term bonds. Now the bonds are all yielding a pathetic 1% or so, but still pretty amazing.