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Within a couple years, interest rates on long-term US Treasury notes could easily rise 3 to 4%, with interest rates on other governments' paper rising as much, or more.
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All three main rating agencies classify Brazil's government paper as investment grade.
Portugal tests the market's appetite for its government paper with two bond issues.
The requirement for a minimum investment of 64% in government paper was removed two years ago.
In response, IPCC Chairman Rajendra Pachauri dismissed the government paper as "voodoo science".
The government paper said: "It would establish a common framework across public service pension schemes.
Mr. Benitez's career began in 1936 with El Nacional, a government paper.
The government paper is simply not relevant to what we have come to discuss".
Accordingly, the Reserve Funds never buy such paper, opting instead for short-term government paper or highly rated bank obligations.
And banks have come under pressure to raise more capital in part because of their exposure to dubious government paper.
According to one banker, the banks have a "gigantic appetite" for government paper because other lending is even more unattractive.
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