Our Friends, the Chinese and Sheikhs

[admin]

Nice drop in purchases of long-term U.S. Treasuries by foreigners:
http://www.treas.gov/tic/tressect.txt

Looks like our friends the Chinese, oil sheikhs (U.K. is where they do their banking), and hedge funds (Caribbean banking centers) are selling long-term U.S. Treasuries:
http://www.treas.gov/tic/mfh.txt

I wonder if 10 year rates will start rising? Oh, I guess they are, already:
http://research.stlouisfed.org/fred2/series/DGS10/chart?cid=115&fgid=&fgcid=&ct=&pt=&cs=Medium&crb=on&cf=lin&range=Custom&cosd=2007-01-01&coed=2007-06-13&asids=+%3CEnter+Series+ID%3E&cg2=Refresh+Graph

It’s going to be a ‘fun’ year.

[(former)FormerSanDiegan]

Gee, I sure hope they aren’t selling those treasuries to buy U.S. real estate.
Trillion-dollar question: Where will the money go ?

[(former)FormerSanDiegan]

Gee, I sure hope they aren’t selling those treasuries to buy U.S. real estate.
Trillion-dollar question: Where will the money go ?

[sdappraiser]

http://finance.yahoo.com/q/bc?s=SDS&t=1y

Having fun yet?

[sdappraiser]

http://finance.yahoo.com/q/bc?s=SDS&t=1y

Having fun yet?

[kewp]

Having fun yet?

uh oh…

[kewp]

Having fun yet?

uh oh…

[no_such_reality]

The Euro-Zone Bond Market. Same size, more currency stability than the US. As a fixed income, that’s what I’d want.

[no_such_reality]

The Euro-Zone Bond Market. Same size, more currency stability than the US. As a fixed income, that’s what I’d want.

[Anonymous]

Aw, SDA, it’s just ‘funny money’ until I’ve got to cash in my chips. And, I don’t have to cash in my SDS chips for at least a year or two.

If the stock market hasn’t crashed by the end of the year, I’ll revisit my strategy.

But, given the flat industrial production in May (revised downward for April, too), drop in capacity utilization, and fall in consumer confidence, I remain as cool as a cucumber:

http://www.marketwatch.com/news/economy/economic_calendar.asp?siteId=

I look forward to seeing the personal consumption data for May, to be released in two weeks. Given the high headline inflation that we saw today, I expect that spending will be weak (e.g., the surprisingly high nominal May retail sales will be markedly deflated by the surprisingly high headline inflation to arrive at surprisingly low real May personal consumption growth).

[Anonymous]

Aw, SDA, it’s just ‘funny money’ until I’ve got to cash in my chips. And, I don’t have to cash in my SDS chips for at least a year or two.

If the stock market hasn’t crashed by the end of the year, I’ll revisit my strategy.

But, given the flat industrial production in May (revised downward for April, too), drop in capacity utilization, and fall in consumer confidence, I remain as cool as a cucumber:

http://www.marketwatch.com/news/economy/economic_calendar.asp?siteId=

I look forward to seeing the personal consumption data for May, to be released in two weeks. Given the high headline inflation that we saw today, I expect that spending will be weak (e.g., the surprisingly high nominal May retail sales will be markedly deflated by the surprisingly high headline inflation to arrive at surprisingly low real May personal consumption growth).

[Anonymous]

Mad Monk/FSD, it looks like the Chinese and oil money is going to FNMA/GNMA bonds, U.S. corporate bonds, and U.S. stock market (lines 6-8, 11-13):

http://www.treas.gov/press/releases/hp460.htm

When the meltdown happens, it’s going to be fun.

[Anonymous]

Mad Monk/FSD, it looks like the Chinese and oil money is going to FNMA/GNMA bonds, U.S. corporate bonds, and U.S. stock market (lines 6-8, 11-13):

http://www.treas.gov/press/releases/hp460.htm

When the meltdown happens, it’s going to be fun.

[(former)FormerSanDiegan]

Mad Monk/FSD, it looks like the Chinese and oil money is going to FNMA/GNMA bonds, U.S. corporate bonds, and U.S. stock market (lines 6-8, 11-13):

http://www.treas.gov/press/releases/hp460.htm

When the meltdown happens, it’s going to be fun.

But where will they put the proceeds of their sales of these assets when they finally stop accumulating and start selling ? That’s what I want to know.
Euro bonds were mentioned as a possibility above.

[(former)FormerSanDiegan]

Mad Monk/FSD, it looks like the Chinese and oil money is going to FNMA/GNMA bonds, U.S. corporate bonds, and U.S. stock market (lines 6-8, 11-13):

http://www.treas.gov/press/releases/hp460.htm

When the meltdown happens, it’s going to be fun.

But where will they put the proceeds of their sales of these assets when they finally stop accumulating and start selling ? That’s what I want to know.
Euro bonds were mentioned as a possibility above.

[Author]

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