SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: anachronist who wrote (30568)4/14/2005 1:13:38 PM
From: mishedlo  Read Replies (3) of 110194
 
With what money will US investors buy Treasuries? Cash held by mutual funds is at record lows. Savings by US households is at record lows. Everyone is bought in, fully leveraged. The country would have to sell assets to buy Treasuries. But if foreigners aren't buying our Tbills, would they buy our assets? Probably not.

Shheesh
here we go again and you are spouting a silly argument that caused a huge debate with Lambeth-Palace and myself

How about a flight out of stocks into treasuries
How about a flight out of junk into treasuries
How about a flight out of mortgage securities into treasuries
How about a flight out of corporates into treasuries
How about people deciding that 4% is not a long term bad deal

Bonds funds buy bonds.
That is what they do
They have been chasing anything and everything attempting to get a few bps over treasuries. Well Those in GM bonds just got there clocks cleaned because of it. There is another one I forgot about. When GM falls to junk where do you think some of that money will go from the bond funds that have to sell?

Sentiment against US treasuries is off the wall extreme. Pent up demand for treasuries is enormous.

Mish
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News