Those who read our article on this topic at this time last week should already know the answer to this rhetorical question. Everyone else may be a little surprised to learn that at a time when every Primary Dealer's sales desk has been pushing what little is left of gullible investors into stocks because the "Great rotation out of bonds and into stocks is our Top trade of 2013" (source: [every sellside strategist]), just as these seem poised to tumble in a recreation of the August 2011 debt ceiling fiasco (as we have been warning for months), their holdings of these same boring old Treasurys once again rose in the latest week ending December 19, increasing by another $10 billion, and hit a fresh all time gross high of $146 billion. Judging by what is increasingly a rotation out of stocks and into bonds, the smart money - correction the only money remaining - appears positioned correctly once again.
Remember: always do what they do, not what they say.
Source: NY Fed Primary Dealer Holdings