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Spot The Foreign Demand For US Treasurys Under Obama

Tyler Durden's picture




 

Few charts capture as effectively the shift in foreign demand for US Treasurys over the past 4 years, or under the Obama administration, as the following two, courtesy of the latest TBAC Q4 refunding presentation. They are quite self-explanatory.

Total foreign demand: Bills and Coupons.

And foreign demand for just Coupon paper.

So who is picking up the slack?

And what is another name for Primary Dealers?...think POMO.... Why, the Fed of course.

 

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Tue, 11/06/2012 - 12:07 | 2951885 Ham-bone
Ham-bone's picture

Is the answer "nobody but Ben buys T's"?

Do I win a prize?

Tue, 11/06/2012 - 12:13 | 2951915 Ham-bone
Ham-bone's picture

Suprising that w/ Operation Twist (Fed selling short/ buying long) that the number of Bills being purchased by foreigners has really collapsed...this is actually a bit of a suprise given that the Fed is a big net seller of Bills...who is buying these?

Tue, 11/06/2012 - 12:16 | 2951932 Mark Carney
Mark Carney's picture

the answer you are looking for is, the Fed. from one pocket to the other.

Tue, 11/06/2012 - 12:17 | 2951940 Ham-bone
Ham-bone's picture

I guess Bills are the next great front running event for PD's.  Fun.

Tue, 11/06/2012 - 12:20 | 2951955 Pladizow
Pladizow's picture

Exponential decelerration!

Tue, 11/06/2012 - 12:27 | 2951982 Ham-bone
Ham-bone's picture

Excremental declaration?

Tue, 11/06/2012 - 12:39 | 2952019 Monedas
Monedas's picture

Explosive bowel movement ?

Tue, 11/06/2012 - 12:50 | 2952045 Ham-bone
Ham-bone's picture

Sounds like the Fed's next monetization scheme, EBM...following QE the Fed could name the next program we should offer some new names (ie, EBM or CFT = Cash for Trash).

Still amusing and telling that the Fed chose Quantity over Quality in front of that Easing...imagine had the program been named Qualitative Easing.  Things could have been so different.

Tue, 11/06/2012 - 21:48 | 2953838 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

the world is fed and must take a dump

Tue, 11/06/2012 - 12:13 | 2951920 nope-1004
nope-1004's picture

Ponzi.  Clearly.

 

Tue, 11/06/2012 - 12:20 | 2951952 Dr. Richard Head
Dr. Richard Head's picture

Just wait and see what happens when Romney and declares China a currency manipulator. 

Tue, 11/06/2012 - 14:54 | 2952603 Stoploss
Stoploss's picture

Must buy moar toxic mbs debt to monetize to give to primary dealers to buy moar

coupons so FED can buy moar toxic mbs debt to monetize to give to primary dealers

to buy moar coupons so FED can buy Moar Toxic Mbs debt to monetize to give to primary

dealers to buy MOAR AN MOAR AN MOAR....

Tue, 11/06/2012 - 12:04 | 2951886 CPL
CPL's picture

My boy builds coffins with hammers and nails
He doesn't build ships, he has no use for sails
He doesn't make tables, dresses or chairs
He can't carve a whistle cause he just doesn't care

My boy builds coffins for the rich and the poor
Kings and queens have all knocked on his door
Beggars and liars, gypsies and thieves
They all come to him 'cause he's so eager to please

My boy builds coffins he makes them all day
But it's not just for work and it isn't for play
He's made one for himself
One for me too
One of these days he'll make one for you,

Tue, 11/06/2012 - 12:04 | 2951887 Spitzer
Spitzer's picture

MF Global was a primary dealer and the ECB tanked it.

 

http://freegoldobserver.blogspot.ca/

Tue, 11/06/2012 - 12:18 | 2951949 Schmuck Raker
Schmuck Raker's picture

No. Corzine tanked it via ECB related trades.

Stick to Bush apologia.

Tue, 11/06/2012 - 12:05 | 2951889 LawsofPhysics
LawsofPhysics's picture

Precisely why the FRN will no longer be the world's reserve currency.   Stupid sheep.

Tue, 11/06/2012 - 12:20 | 2951954 seek
seek's picture

True. but don't blame the sheep for this particular offense -- this is the wolves' doing.

Tue, 11/06/2012 - 12:23 | 2951966 malikai
malikai's picture

Sheep would be a valid label if they had zero thinking capacity AND no way to defend themselves.

This is not yet true. But we're getting there.

Tue, 11/06/2012 - 12:47 | 2952048 Winston Churchill
Winston Churchill's picture

Does'nt take a math major to extend the mean on

that bar chart.End of 2014, and the FedRes will be the UST market.

Tue, 11/06/2012 - 13:49 | 2952348 LawsofPhysics
LawsofPhysics's picture

All according to plan.

Tue, 11/06/2012 - 12:10 | 2951905 cdude
cdude's picture

Where's Waldo?

Tue, 11/06/2012 - 12:28 | 2951909 Zero Govt
Zero Govt's picture

that Democrat village idiot that said US Govt debt was a "sign of American strength" must by hiding under his desk rigth about now

he'll find Timmaya under there quivering trying to cook-up a "sustainable budget"

don't worry your little heads Senators and Congressmen, economic policy is now in the capable hands of a private banking cartel, the Bernanke Mad Contrarian Hedge Fund.

you are relieved of your democratic duties as of now, return your excessive wages as you're doing nothing on the economy, return to your respective ratholes.

All Senators and Congressmen are henceforth, unemployed

Tue, 11/06/2012 - 14:27 | 2952492 TruthInSunshine
TruthInSunshine's picture

 "...that Democrat village idiot that said US Govt debt was a "sign of American strength..."

 

Paul Krugman?

Tue, 11/06/2012 - 18:31 | 2953373 Zero Govt
Zero Govt's picture

it wasn't him but that's a very good guess as we know he would say that without blinking

Nobel Prizes in Economics are clearly not given on your ability to do basic maths anymore, or entry to the Senate and Congress ...they'll find their weakness out soon enough

Tue, 11/06/2012 - 12:12 | 2951914 i love cholas
i love cholas's picture

I can't wait till election is over so ZeroHedge can get back to writing articles again.

Tue, 11/06/2012 - 12:13 | 2951917 LawsofPhysics
LawsofPhysics's picture

Lots of paper promises folks.  Fiat is fiat is fiat, got physical?

Tue, 11/06/2012 - 12:14 | 2951923 govttrader
govttrader's picture

If you think about it....the Treasury borrows money from the public (sells bonds to the world)...the Fed prints money to buy back those bonds...the Fed then lends those bonds out via repo operations with banks to absorb all the excess dollars...and congress gets their allowance.  So long as the banks don't mind lending all their excess reserve cash to the Fed (maybe...2 trillion or so)....almost no inflation.   Its the perfect merry-go-round...until...you know...some bank decides to loan out some of its "excess" cash.  You know...for things like...maybe a return...to..you know...make money and grow the economy.  Then the SHTF.  But..hey...you know...don't worry about that....

But wait...did somebody say the banks don't need to lend out that money.  The govt can do all the spending...all the lending...all the "growing the economy."  I hear that worked great for all those countries that were...you know...socialists and communists and stuff...no biggie.   Tell that to Ohio.

http://govttrader.blogspot.com/

Tue, 11/06/2012 - 12:27 | 2951981 drivenZ
drivenZ's picture

excess reserves do not equal lending or lack there of. They are a function of the feds balance sheet. that's it. 

 

Tue, 11/06/2012 - 12:14 | 2951925 Schmuck Raker
Schmuck Raker's picture

Re-elect Obama!

I think it far more civilized when you default on your own central bank rather than someone else's.

Tue, 11/06/2012 - 12:14 | 2951929 Pooper Popper
Pooper Popper's picture

Oh BOBO you have been a bad Monkey!!!

Tue, 11/06/2012 - 12:18 | 2951944 JustObserving
JustObserving's picture

Luckily there is no foreign demand or the Fed would not be able to buy enough.  

Tue, 11/06/2012 - 12:18 | 2951947 Confundido
Confundido's picture

Has anyone priced WWIII under Romney? Reasons why, if I was American, I would vote Obama:

-to ensure that Ben continues to print unabated so that we can completely discard, in the future, any doubts that QE does not bring growth.

-to ensure that the US doesn't go to the Middle East or South China sea to pick a fight...

Tue, 11/06/2012 - 12:25 | 2951961 Zero Govt
Zero Govt's picture

another sheep that thinks which bwankers puppet you vote for changes anything

50% of voters do not vote because, "it changes nothing" ..ever thought they were the sane voters drawing from human experience and the others were insane banging their heads against a brick wall voting??

you need to get clued up mate, you're way behind the way things work around here

Tue, 11/06/2012 - 12:59 | 2952110 Winston Churchill
Winston Churchill's picture

 Competent,lying scumbag,bankers tool

  Incompetent, current,lying scumbag,bankers tool.

Tue, 11/06/2012 - 12:23 | 2951965 LawsofPhysics
LawsofPhysics's picture

"to ensure that Ben continues to print unabated so that we can completely discard, in the future, any doubts that QE does not bring growth and insures unabated inflation in COMMODITIES you need to SURVIVE." -  fixed.

Yeah, bring it, my commodities portfolio is ready.

Tue, 11/06/2012 - 12:19 | 2951951 Banksters
Banksters's picture

Jon corizine here. Suck my Dick. Obama= coke Romney=pepsi

Tue, 11/06/2012 - 13:02 | 2952129 Stuck on Zero
Stuck on Zero's picture

Romney and Obama are flat.  Coke and Pepsi fizz. 

Tue, 11/06/2012 - 12:22 | 2951963 francis_sawyer
francis_sawyer's picture

It's not that they don't want our DEBT, it's that they don't want the money that the debt is redeemable in...

The only ones who want 'joobux' are joos [which is why the Fed is the only buyer]...

Tue, 11/06/2012 - 12:34 | 2951989 Monedas
Monedas's picture

So, people are "awarded" the privilege of buying our bonds ?    LOL    May I "award" Bernanke and Obama the privilege of sucking my dick !

Tue, 11/06/2012 - 12:34 | 2952005 Zero Govt
Zero Govt's picture

gotta chuckle at China sidelining the commission skimming middlemen, Blankfein and Dimon, and buying direct at the US Treasury

Tue, 11/06/2012 - 13:07 | 2952149 Monedas
Monedas's picture

Buy direct .... Spastica City !

Tue, 11/06/2012 - 13:10 | 2952159 Monedas
Monedas's picture

My comments are pretty clever .... considering I don't really understand all this economic/market crap .... I'm just a low level hoardertard !

Tue, 11/06/2012 - 18:37 | 2953387 Zero Govt
Zero Govt's picture

don't worry, your balance sheet is massively sounder than the US Govts, the Feds, the whole of Wall Street and the US Postal Service as well

you need to be promoted, and fast, they're all in deep trouble and need your financial skill

Tue, 11/06/2012 - 12:37 | 2952016 ReptilianSlaveMaster
ReptilianSlaveMaster's picture

Change we can believe in!

Tue, 11/06/2012 - 12:53 | 2952075 Shizzmoney
Shizzmoney's picture

Can the Congress buy Treasury bonds too? 

Oh, they can't .  Why vote, then?

Tue, 11/06/2012 - 13:17 | 2952181 ncdirtdigger
ncdirtdigger's picture

These are not the buyers you are looking for.

Tue, 11/06/2012 - 13:20 | 2952200 dexter_morgan
dexter_morgan's picture

Excellent job Frank Marshall Davis, Jr. - keep up the good work.

Tue, 11/06/2012 - 13:32 | 2952268 Winston Churchill
Winston Churchill's picture

Welcome to the FORWARD Recovery Bond.

Zero coupon.

Enforced buying,but you can never  sell.

Tue, 11/06/2012 - 14:22 | 2952476 Blkhat117
Blkhat117's picture

Well the dollar is getting trashed in the most efficient way possible.

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