The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (17955)	2/28/2004 5:25:04 PM
From: Wyätt Gwyön	Read Replies (1) of 306849

those rates would be much higher if it were not for Japan, and to a smaller degree China purchasing our long-term debt i do not think they are touching our long term debt--there is not enough of it to achieve the currency interventions they are implementing. total Treasury debt maturing in 20yrs or later amounts to less than $200 billion, and this number continues to decline. this is because the Treasury is issuing short-term securities that carry much lower coupons--the government version of an ARM. their thinking is to issue 1yr paper at 1% or 2yr paper at less than 2%, rather than 30yr paper at 5%. the vast majority of US Government debt matures in less than five years, and this is where Asian CB buying is concentrated. incidentally, the lack of Asian CB buying at the long end of the curve is why US long rates are comparable to or even higher than the long rates of other industrialized countries. there is no subsidy at the long end. long term US Treasury debt is about equal to the market cap of Intel.

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