Germany Issues $4 Billion In Dollar Denominated Bonds
In a sign of just how eager all foreigners are to piggy back on the US' premeditated destruction of the dollar, Germany has just issued $4 billion in three-year dollar denominated bonds. From Bloomberg:
Germany sold $4 billion of bonds in
its first dollar-denominated offering since 2005, according to a
person familiar with the transaction.
The three-year issue broadens the nation’s sources of
funding at a time when it’s seeking to raise a record amount of
debt. The notes priced to yield 25 basis points below the
benchmark mid-swap rate, according to another person familiar
with the transaction who declined to be identified.
The issue was underwritten by Bank of America Corp.,
Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc.
And the reason why everyone is now hell bent on issuing debt in the world's choice for the next carry trade currency:
“There’s a lot of demand for it,” said David Keeble, head
of fixed-income strategy in London at Calyon, the investment
banking arm of Credit Agricole SA. “It seems to be cheaper for
Germany to issue in dollars at these yield levels."
While it is no surprise that all the countries that engaged in massive stimulus reform will now be forced to issue hundred billions in dollars to fund soaring deficits, it is now just a matter of time before they all piggyback and start imitating the US Treasury. Bernanke has now given the green light to dollar-denominated debt destruction (at the expense of savers) and as more and more countries line up to issue dollar bonds, the only question is how long before investors realize there are alternatives to the upcoming trillions in US treasuries still in the pipeline. With the DXY at a year low and likely to continue dropping each day as the market goes higher on momo quant wet dreams, all those investors better spend whatever current income these bonds generate before the dollar is pounded into oblivion, and the full issue, in this case, is repaid with a brand new and crisp $4 billion dollar note in three short years.