No more foreign demand for long-term Treasuries?

[ubiestmea]

Today’s Treasury International Capital (TIC) data report had the largest one month decline in net long-term securities transactions; from 97.3b to 19.2b. The -9.3b net foreign sales of long-term Treasuries is the largest liquidation in five and a half years.

There was an apparent flight to quality as holdings of short-term dollar securities raised 66.6b from a net loss of 27.6 in June. Net Treasury bill buying was 18.7b compared with net sales of 17.9b in June.

Have foreign investors finally decided to bail on US long-term Treasuries as has long been feared? I know one report does not a trend make but now that the Fed has started a new round of rate cuts and clearly signaled it’s willingness to let the dollar go, why would foreign investors want to buy long-term Treasuries?

http://www.treas.gov/press/releases/...60_ticdata.pdf

[Jimbo]

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why would foreign investors want to buy long-term Treasuries?


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A bird in the hand is worth two in the bush?

Jimbo

[gonebroke2]

Looks like the Federal Reserve is going to make up for lost demand. Hyperinflation is inevitable.

[Borodog]

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Looks like the Federal Reserve is going to make up for lost demand. Hyperinflation is inevitable.

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I do not think that word means what you think it means.