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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (13887)5/14/2004 8:45:05 AM
From: orkrious   of 110194
 
from john succo at minyanville

One little thing about the auction bothers me, and may bother you. Normal participation by foreign central banks in our auctions has been averaging around 44% (of the notional value of the auction). Yesterday it was 35%. In addition, 20% of the 5-year was taken down due to a lack of foreign buying (the fed in turn has to monetize this portion). One auction does not indicate a trend. But we need foreign buying of out bonds or else rates will certainly rise.
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