June 25, 2012

By Thomas Lee, Managing Director, J.P. Morgan

In addition to the market impact, rising interest rates mean increased borrowing costs for the Federal Government. True, they are still down from last year and near historical lows, but when your borrowing amounts are measured in trillions, every little basis point counts. For every trillion the government borrows, a one-basis point increase in interest rates translates to an extra one hundred million dollars in annual borrowing costs.

Source: This was excerpted from Bespoke via 361 Capital's 361 Capital Weekly Research Briefing, March 19, 2012 publication, http://361capital.com

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