Interest rates will spike as investors from China to Germany demand higher rates for Treasury paper.
Commercial lenders typically demand higher rates for unsecured credit.
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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.
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.
What this means is that while many look at the ending of QE2 to divine future demand for Treasuries and Treasury rates, many other buyers are instead focusing on economic growth and inflation expectations.
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This year Gruber looks for 3.5% growth, boosted by lower rates and strong global demand for commodities.
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.
There is the impression that Capital One catered to card holders with lower than average credit, and used their increased demand for credit to push through rates and terms unfriendly to consumers.
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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For example, although demand for higher education has fallen in England, the actual entry rates for young people are close to trend.
It argues that cutting rates could spur demand for imported goods and add to the deficit.
Any such move would likely see interest rates rise and demand for bonds, particularly Treasuries, fall.
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But medical advancements have led to a rise in demand for organs that is outpacing donation rates.
The increased demand for housing arising from lower mortgage rates would provide a floor on further house price declines.
With demand for mobile devices growing at impressive rates, the mobile semiconductor industry continues to be as competitive as ever.
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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.
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.
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.
Still, the further the currency sinks, and the higher are the rates that investors demand for rolling over the debt, the bigger is the surplus needed to stabilise the debt ratio.
Restructuring foreign debt offers another way to stabilise exchange rates, because demand for dollars to repay short-term foreign loans is a big reason for the relentless downward pressure on the currencies.
The association blamed higher mortgage rates for slowing demand.
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.
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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In fact I am a user of Housetrip and Airbnb because I cannot afford hotel rates, because demand for rooms seems to be pretty strong and hotels have moved to the same model as airlines, ramping up prices nearer to the purchase date.
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.
He fears cheap Brazilian sugar, decisions from Brussels and China's demand for steel, which is pushing freight rates higher.
Demand for houses has weakened because rising interest rates made them less affordabile, the RICS said on its Web site earlier this week.
Banks wiped 17 points off the FTSE amid revived worries of a possible rise in UK rates that would hit demand for loans.
Chinese prices of steel have risen by 20% since November, and the Baltic Dry Index, a measure of shipping rates and hence the demand for commodities, has more than doubled, although it is still 84% below its 2008 peak.
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