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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 (24081)	1/5/2005 2:08:46 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

<obviously bonds are far less dependent on overseas buying than is generally assumed.> This is a poor use of semantics. It's not "foreigners" or "overseas buyers" per se, it's foreign central banks, referred to as "custodials" that print up money and purchase US treasuries and agencies. And the amount of these custodial purchases can be ascertained each and every week in the Fed monetary data. Currently the yoy increase in such holdings is $269.038 billion. It's fuzzy thinking to call this "minor", in reality it's overwhelming when combined with the Feds own monetizing and open market operations. You can spot custodials by scrolling down to "Marketable securities held in custody for foreign official and international accounts". along with the breakdown between agencies and treasuries. Now add the Fed's own yoy purchases of $51.325 billion to the so called "insignificant" kitty, see "securities bought outright". federalreserve.gov To say "Japan stopped intervention" is either once again poor choice of wording or more likely is just outright mistaken if he is referencing their market presence.