Silver as an investment

Category Archives: United States Treasury security

China Issues First Dollar Bond Since 2004, Bails Out Corporate Liquidity

Despite downgrades from the rating agencies, China is issuing its first sovereign dollar bond issues in 13 years on an unrated basis (what do the agencies know anyway) and at tight spreads to US Treasuries. The 5 and 10-year issues come just over a month since S&P cut the nation’s rating one level to A+ […]

About That Debt Ceiling Crisis…

With just one month left until the “X Date”, better known as the first day on which Treasury has exhausted its borrowing authority and no longer has sufficient funds to pay all of its bills in full and on time, and also known as the date the US is technically in default on its debt […]

An Insane Bond Market In 4 Charts: “Italian Junk Bonds Yield Less Than US Treasurys”

In our “WTF Chart of the day” from last Friday, we showed something stunning: European junk bonds yields were the same, and in some cases lower, than comparable-maturity 10Y US Treasurys. In other words, the distortion unleashed by Mario Draghi’s CSPP, or corporate bond buying program unveiled last March, has made European junk bonds “safer” […]

When Doves Fly – Bond Market Turbulence Ahead – by Michael Carino

  It is largely acknowledged that after a decade of unprecedented monetary accommodation in the US and abroad, bond markets are extremely overvalued.  Globally, central banks are trying to slowly deflate this bubble but the beast created is not easily broken.  A decade of manipulating bond prices has created a small consortium of large balance […]

Foreign Banks Subpoenaed Over Alleged Treasury Market Manipulation

Federal prosecutors have subpoenaed several (foreign) banks as part of a criminal investigation into possible manipulation of the U.S. Treasuries market, according to people familiar with the matter. U.S. authorities have been examining the U.S. Treasuries market for roughly two years. As Bloomberg reports, in November 2015, Goldman Sachs disclosed that U.S. authorities had sought information related […]

China Is Again Selling US Treasuries As Foreign Central Banks Liquidate $45BN

After December’s brief dead cat bounce, in which foreign central banks bought $18.6 billion in US Treasuries, breaking a streak of 12 consecutive months of selling, in January they resumed their liquidation. According to the just released TIC data, foreign official institutions, which includes mostly central banks, but also sovereign wealth funds and various other […]

Dazed & Confused… Treasury Buying Versus Asset Valuations?

“It Was A Deer In Headlights Moment”: Japan Dumps Most US Treasuries Since May 2013

With the December monthly TIC data due out this week, bond traders will be closely watching if the selling of US Treasuries by foreign accounts, and especially central banks, which as we have repeatedly shown for the past several months has hit record levels…   … will persist, with a focus on whether China’s near […]

EU – Not China Or Japan – Is The Biggest US Treasury Holder (And This Is Not A Good Sign)

Via GEFIRA, US-centric media are reporting that Japan has become the biggest holder of the US treasuries, surpassing China last month. However, this is true only in regard to single countries. If we consider the European Union member states collectively, then they appear to be the biggest holder of the US treasuries. It has been […]

China Dumps Treasuries: Foreign Central Banks Liquidate A Record $403 Billion In US Paper

One month ago, when we last looked at the Fed’s update of Treasuries held in custody, we noted something troubling: the number had continued to drop sharply, declining by another $14 billion in one week, and pushing the total amount of custodial paper to $2.788 trillion, the lowest since 2012. One month later, we refresh […]