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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (4079)	12/29/2003 10:41:34 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

I don't think "selling" agencies is old news for the ECB. They clearly have not been "buyers" judging from the Sept and Oct. flow of funds figures that have been coming out. We need some clarification on this one?

To: mishedlo who wrote (4079)	12/29/2003 11:05:44 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

From 12/2 Contrary Investor on foreign agency activity in Sept: US GOVERNMENT AGENCIES The real important source of weakness in terms of foreign purchasing of US financial assets in September was centered in the government agency complex. As you'll see below, there has been only one other month in history where foreigners sold as many agency bonds as was the case in September. The prior occurrence was post LTCM in 1998. For now, it's one month's experience. Interestingly, and as you can see in the chart, foreign purchases of agency paper peaked as conventional mortgage rates hit multi-decade lows earlier in the summer of this year. Again, although it's just a single month, China was the largest sole seller of agency paper in September. Country Net Selling Of Government Agency Paper In September ($millions) China $(925) Germany (812) Japan (551) UK (86)