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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Les H who wrote (18284)3/9/2004 8:16:57 AM
From: Wyätt GwyönRead Replies (1) of 306849
 
the Bank of Japan is reported to have bought over $100 billion of U.S. Treasury ... it has enabled long term bond rates to remain artificially depressed

this author is very confused. he seems to think BOJ is buying long-dated Treasurys when all their buying (and all new supply) is concentrated close-in. US Government don't care no long rates; Treasury financing is an ARM with a 1yr duration, which is why US Govt interest payments continue to DECLINE even as deficits and debt rise.

Unless the Bank of Japan buys $200 billion of T-bonds next month

well, if they bought $200billion of T-bonds, they would have to buy EVERY bond in existence, and then some! there's less than $200 billion in existence.
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