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

To: shades who wrote (63342)	6/11/2006 10:07:20 AM
From: russwinter	Read Replies (4) \| Respond to of 110194

That presumes that the Chinese are the ones buying housing agency issues. Just do a google search on this topic, and it's hard to find much, especially current stories. Here's one talking about "Asian" demand, which appears to be Japanese, which shoots down your theory, but may support mine? Japan has completely stop buying Treasuries, and has shifted totally to agencies. flutrackers.com The same is true elsewhere. FCB buying of t-bills has completely stopped, yet if you watch auctions as closely as I do, you see another pattern. Right when the bond market is in trouble, "FCBs" (or certain FCBs). mysteriously show up and grossly overpay for the most risky issues, like TIPS, and long dated (10s and 30s) bonds, or agencies. Their behavior is now completely bizzarre in fact, just too heavy on risk taking and buying trash. xanga.com Freddie Mac hired Bitsberger, the Treasury official who brought back the 30-year bond, as its treasurer and a senior vice president last month. He was the latest high-profile hire for the agency as Chief Executive Richard Syron works to win back investor confidence after revealing $5 billion in accounting errors from 2000 through 2002. Bitsberger was born in Fukuoka, Japan and spent the first few years of his life here. He visited the country four or five times while he worked at the U.S. Treasury. Yesterday he had lunch with 15 investors yesterday and has four one-to-one meetings set up for his trip to Japan. ``Some of them I have to introduce myself to,'' he said. ``Some of them I know very well.'' Just a good salesman?