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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (37147)	9/14/2005 5:55:26 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

U.S. Treasury Sees `Market Dislocation' The U.S. Treasury, concerned about a possible ``market dislocation'' in the 4 3/8 percent note due in August 2012, ordered any firm holding more than $2 billion of the security to report their positions. The Treasury, one of the regulators in the $4.1 trillion market for U.S. government debt, wants to avoid any disruption that may occur because one investor holds too many notes. Traders are willing to risk losing money to obtain the security because it is the cheapest that can be used to fulfill the $36 billion of futures contracts that come due on Sept. 30. The request was prompted by an increase in the number of firms that borrowed the note and failed to return it, said a Treasury official who briefed reporters on the condition of anonymity. The last time there was concern about a shortage of Treasuries eligible to settle futures contracts was in June when a record $14.2 billion of notes were used to meet the obligations. ``This is a warning shot in people's foreheads, that if there's a squeeze this time, recess is over,'' said Howard Simons, a Chicago-based strategist at Bianco Research LLC. ``They are saying, `if we think you've done anything questionable, we are going to yell and scream your name all over the place.''' .... .... LMAO Message 21703451