[quote=XBoxBoy]
And now a week later, and it seems almost all of the sell off has been recooped.
I’m finding the 10yr action particularly odd since by most accounts the “crisis” is easing so we should no longer be seeing a mass buying of treasuries as a flight to safety measure. Any of you savvy investor types have a good explanation of why 10yrs are being scooped up? Is China or Japan suddenly adding large quantities of 10yrs to their reserves? If so why?
Isn’t it expected that in the near future the US will be issuing large quantities of debt, thus the supply of treasuries will flood demand? Wouldn’t that mean lower treasury prices? (and higher yields)
What am I missing here?
XBoxBoy[/quote]
The bully pulpet. Did you read about how the fed “infused” capital into the banking system? Wells Fargo wanted nothing to do with it. They are a healthy bank (in todays company) and didnt want the government handout, cause they didnt need it. Same as they didnt need gov support to buy Wachovia. You would think the GOV would be happy about this, giving taxpayer “capital” only to the banks that really need it, and rewarding the healthy banks who had good lending practices/managment. NOPE. The CEO’s were held there for hours and hours until they all signed on. If they had held out longer, they would have been kept there longer. That isnt negotiation.
Check treasury and FED phone records. I am sure they are on the phone every time reality starts to hit the treasury market. These are powerful people with powerful friends, you dont get to just say no.
