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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Wharf who wrote (22156)	12/9/2004 12:16:03 AM
From: The Vet	Read Replies (1) \| Respond to of 81019

Darleen, you really don't think that this was a coincidence that just happened at the same time as the Yen went from 102 to almost 105 do you? "In another dose of positive dollar news, today's 5-year Treasury note auction of $15 billion drew a record high 65% participation by indirect bidders, which are usually a proxy of foreign central bank participation. This is not only higher than the 44% seen in last month's 5-year auction, but the highest foreign participation since the data have been made available in summer 2003. The auction is supportive for the US dollar as it stabilizes emerging fears that foreign central banks are tempering their demand for US treasuries." Obviously a well planned strategy by the Japanese CB to support the value of the bulk of their reserves at the same time as weakening the Yen to help their exporters. I expect they will continue to support the dollar for a while in order to consolidate the gains, but all they have done in the longer term is dig themselves into a deeper hole... It's amazing that the gold and silver shorts got their timing to coincide so neatly. Seems they have friends in high places...