Apparently, the G8 DID do something this weekend. They decided to back the dollar. At least verbally. But actions speak louder than words.
Russia's Finance Minister Kudrin verbally supported the dollar w/such calming statements as "it’s too early to speak of an alternate [currency]” and said the dollar "is in good shape."
However, let's take a look at what foreign central banks have been doing in the long term end of the Treasury curve.
The TIC data was: 11.2 Billion (actual) vs 58.1 B (forecast)
Here are the hard figures:
http://www.ustreas.gov/tic/mfh.txt
US analysts were hoping that foreign central banks would continue buying longer term treasuries. Instead, they mostly just sat on their hands. You can look at this as dollar positive in that there was no major selling. But foreigners dont need to sell to put renewed downward pressure on bonds. All they have to do is stop buying or slow down their rate of buying.
And judging by the 2 - 30 spread (still historically high), few are willing to lend money to the US govt for 30 years for single digit returns - and payable in the borrower's own currency.
Monday, June 15, 2009
blog comments powered by Disqus
Blog Archive
-
▼
2009
(472)
-
▼
June
(70)
- The Debts of the Spenders: States Face Looming Bud...
- The Debts of the Spenders: CDS Case Law Update
- The Debts of the Spenders: Drought in Canada?
- The Debts of the Lenders: Putin Closes All Casinos...
- The Debts of the Lenders: Hong Kong Slashes Mortga...
- The Debts of the Spenders: Primary Dealers, the No...
- The Debts of the Spenders: Dresdner Kleinwort Drop...
- The Debts of the Lenders: China Expands Global Rea...
- The Debts of the Lenders: Indian Monsoon Season Se...
- The Debts of the Spenders: CFTC and Senate Target...
- The Debts of the Spenders: The California Muni Sit...
- The Debts of the World: OECD Issues Mixed Signals ...
- The Debts of the Lenders: Japanese Exports Collapse
- The Debts of the Spenders: Chris Whalen Exposes th...
- The Debts of the Spenders: Soybean Rust Fungus and...
- The Debts of the Lenders: Chinese Reality Check
- The Debts of the Spenders: Eurodollar Futures Remi...
- The Debts of the Spenders: Libor, (Euro)Dollar, an...
- The Debts of the Lenders: J-Reits to Surface (Again)
- The Debts of the Spenders: The Obama Years and Ame...
- The Debts of the World: New Wheat Fungus Has Poten...
- The Debts of the Lenders: Chinese Trade War?
- The Debts of the Spenders: El Nino Odds Greater Th...
- The Debts of the Spenders: Argentina Reaches Deal ...
- The Debts of the Spenders: Wheat Fungus Threatens ...
- The Debts of the Lenders: BRIC Members Issue Call ...
- The Debts of the Lenders: American Creditors Conve...
- The Debts of the Lenders: Russia Talks Up the Doll...
- The Debts of the Spenders: US Retail Import Volume...
- The Debts of the Spenders: Interdisciplinary Appro...
- The Debts of the Spenders: Inflation or Deflation?...
- The Debts of the Spenders: Forward Shipping Rates ...
- The Debts of the Spenders: Banks Pay To Raze Homes...
- The Debts of the Lenders: America's Pacific Allies...
- The Debts of the Spenders: USDA Forecast Wrap-Up
- The Debts of the Lenders: Bond Vigilantes Migrate ...
- The Debts of the Lenders: What China Can Learn Fro...
- The Debts of the Spenders: Boomers Apologize For D...
- The Debts of the Spenders: Forex Traders Believe G...
- The Debts of the Lenders: Chinese Learn Stimulus P...
- The Debts of the Spenders: US Truck Freight Volume...
- The Debts of the World: Soybeans Now Officially Bu...
- The Debts of the Spenders: Treasury Intra-Day Update
- The Debts of the Spenders: Muni Funds Report More ...
- The Debts of the Spenders: Proof of Deflation?
- The Debts of the World: ENSO (El Nino Southern Osc...
- The Debts of the Spenders: A Tale of Two Markets -...
- The Debts of the Spenders: Argentina Wheat Plantin...
- The Debts of the Spenders: Fed Fund Futures Pricin...
- The Debts of the Spenders: Philippines Passes REIT...
- The Debts of the Spenders: Jim Rogers "I am Not Sh...
- The Debts of the Spenders: Temp Jobs Mask Governme...
- The Debts of the Spenders: European Corporate Bond...
- The Debts of the Spenders: CFTC's Gensler Calls Fo...
- The Debts of the Spenders: Central Bankers Confuse...
- The Debts of the Spenders: Agricultural Weather Up...
- The Debts of the Spenders: Corn's Counter Cyclical...
- The Debts of the Spenders: Watch ECB and Fed Comme...
- The Debts of the Spenders: The CME - ICE Wars
- The Debts of the Spenders: US Corn Knee High By th...
- The Debts of the Lenders: South Korea Breaks Recor...
- The Debts of the Spenders: CME and Eurodollar Posi...
- The Debts of the Lenders: America's Pacific Allies...
- The Debts of the Spenders: The SEC Investigates It...
- The Debts of the Lenders: China Warns Geithner Abo...
- The Debts of the Spenders: The Dollar's Big Picture
- The Debts of the Spenders: May 22-29 COTs Data
- The Debts of the Spenders: June 1 USDA Crop Progre...
- The Debts of the Spenders: How to Read the USDA Cr...
- The Debts of the Spenders: Bernanke's Price Fixing...
-
▼
June
(70)