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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 (5936)	1/23/2004 11:00:45 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

<bond yields are giving a false signal> If you had "natural buyers" (as in private parties) bidding for these bonds I'd say you had a natural price. But you don't, as between Nov. 20 and Jan. 21 "foreign custody holdings" (central bank: BOJ) of US debt expanded by $94 billion to 1,108 trillion. That's 56% annualized expansion of holdings. I'd say Japan is facing a severe cost input inflation break out too. They won't be able to print another half trillion dollars worth of Yen in 2004, without real inflationary repercussions. The latest goods inflation index in Japan was 0.2% in Dec, and it would be a lot higher except that the yen has appreciated some against the USD which somewhat offsets it.