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Safe Haven? Record Dump Of US Treasurys By Non-Central Bank Foreigners In June

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Mon, 08/15/2011 - 10:30 | 1561415 No Bid
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Please forward to Joe  W @ Business Insider [a business humor website].

Mon, 08/15/2011 - 10:31 | 1561416 Biggvs
Biggvs's picture

Yet treasury prices spike up in August after the ratings downgrade. Go figure.

Mon, 08/15/2011 - 10:34 | 1561433 EscapeKey
EscapeKey's picture

Santa Claus is still buying. And I hear the tooth fairy need yield to make payments to children.

Mon, 08/15/2011 - 12:54 | 1561922 Sudden Debt
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That's because they are old school. To bad a lot of children will be dissapointed when they find bonds in the socks this year....


Mon, 08/15/2011 - 10:35 | 1561436 Dr. Engali
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Retail made a quick jump out of the market and into money market funds. That is why you had a big move in treasuries.

Mon, 08/15/2011 - 10:53 | 1561497 Biggvs
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The 10yr and 30yrs spiked as well, not just short term paper. But agreed - the dump in equities certainly helped.

Mon, 08/15/2011 - 11:32 | 1561632 SheepDog-One
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Wow if all we've got left is dump stocks to give a momentary boost to treasuries and vice versa, we're in some deep kimchee.

Mon, 08/15/2011 - 10:37 | 1561440 IQ 145
IQ 145's picture

The ratings downgrade appeared to have no effect on the treasuries markets. There's no measurable meaningful l statistical correlation. This is the pronouncement of Mr. Market; Whether is it's right wrong or indifferent I don't know. Tyler is very bearish, of course; and that's his right. I'm pretty darn bearish too. I think you could sell the Long Bond Today as a short, but you better look at the chart yourself; it's a "weak" I think, from me.

Mon, 08/15/2011 - 10:50 | 1561474 SheepDog-One
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Im not trading anything that pays off in off-the-cliff dollars.

Forget dorky Treasuries anyway, lets get to the sexy stuff like QE3 that has been priced into these stupid markets about 40 times over now. Wheres the QE need?

Wheres the fear and panic? Everywhere I look all I see is big smiles on calm Hindu cow faces. All is well, bitchez.

Mon, 08/15/2011 - 12:49 | 1561901 Ricky Bobby
Ricky Bobby's picture

Mr. Market? You mean institutions following price the control settings from the Politburo.

Mon, 08/15/2011 - 14:35 | 1562437 gofigure
gofigure's picture


Mon, 08/15/2011 - 10:32 | 1561422 jimijon
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Help me nominate Charles Ponzi for the Nobel in Economics post humously.




Mon, 08/15/2011 - 10:32 | 1561425 IQ 145
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Treasury prices spike up because of the "flight to quality" which is related to the downwash in equities; eg. the money has to go somewhere. This is an extremely old and well understood thing.

Mon, 08/15/2011 - 10:34 | 1561429 SheepDog-One
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Downwash in equities? What, 3% or so? Big deal.

Mon, 08/15/2011 - 11:07 | 1561546 scatterbrains
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well yea that 3% reflects on those humans that were still in the market at that point.  Now it's off to the races whether the humans participate or not.. or so says the dollar anyway.

Mon, 08/15/2011 - 23:50 | 1564044 boiltherich
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3% of a 24 trillion market cap is a big deal.  It is almost as large as the first big bank bailout. 

Mon, 08/15/2011 - 10:36 | 1561437 EscapeKey
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Right, and today where equities go up and bond yields stay static? Or does this rule only work one way?

Mon, 08/15/2011 - 10:41 | 1561455 SheepDog-One
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Sure, apparently the trick is people have only 2 places to 'invest', stocks or bonds, and BOTH can be raised by alternately chasing people from 1 into the other, and vice versa....kind of like spinning cotton fibers into gold I guess.

Mon, 08/15/2011 - 10:33 | 1561427 SheepDog-One
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So POMO really was just payoff bankers while they sell their UST's. So now what?

Mon, 08/15/2011 - 10:34 | 1561430 LongBallsShortBrains
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Selling more 30yr at these levels. ...... Ballsy or brainy?

Mon, 08/15/2011 - 10:57 | 1561508 Biggvs
Biggvs's picture

Ballsy since the yield went all the way down to 3.5% when the market swooned. I'll bet it swoons again soon. Dead cat bounce in the S&P 500 of 9% and counting.

Mon, 08/15/2011 - 11:04 | 1561537 Boston
Boston's picture


What triggered your trade?

Btw, I'm looking for shorting (10 year) opportunities (after being long for 6 months, and now flat).  While tempting, my analysis says it's still to early to short.

Mon, 08/15/2011 - 12:35 | 1561851 LongBallsShortBrains
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I flipped a silver eagle and a platinum eagle. Both came up tails. Time to sell. Kept the gold eagles hidden in case they become "illegal" to hold.

Joking aside. The runup in the 30 triggered it. Decided to short a while ago if they hit 137.75. Only sold a few Will load the boat short at 142.75. And the truck at 147.75. Don't know where to puke them if wrong. But I am learning and watching close. It's money I can lose. Hope the deflation shit is temporary Long silver gold and platinum. All physical. Long 30.06. Long land, chickens, turkeys, ganja Short brains and trust in the .gov. ( and brains too)

Mon, 08/15/2011 - 23:54 | 1564060 boiltherich
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Bout time we had equality in the anatomical avatars.  I would have posted mine long ago but they won't both fit on a 40X40 pixel photo.  Now if you could just get them to jiggle up and down, or better yet helicopter them. 

Tue, 08/16/2011 - 10:00 | 1565042 LongBallsShortBrains
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Mine wouldn't fit either. Admit I lifted them from google images. I thought about making an animated gif to helicopter them, but since they are not mine, I figured I would leave them alone...... Wouldn't like to find out I was playing with somebody else's sack.... I might like it. Then I wouldn't know what to do.

Mon, 08/15/2011 - 10:36 | 1561438 Robslob
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Another downgrade will come from some rating agency per instruction of the U.S. Government when more foreigners again sell treasuries and the U.S. needs locals to buy more crap therefore containing all the crap in one country.

When each country then gets all their own to bring their money home the final chapter can begin...a new one will begin with gold.

Mon, 08/15/2011 - 15:21 | 1562637 DosZap
DosZap's picture

Robslob @ 10:36,

Well 12 Trillion in actual PRINTED USD's would be a hell of a long time coming home.

Only approx a third of all currency is in the USA, or in Americans hands.

Mon, 08/15/2011 - 10:38 | 1561443 JW n FL
JW n FL's picture

China Trades Renminbi with 1,200% (at least) Leverage.. for Treasuries that have 120% Leverage..

the rational is that China can Service their Debt? by building empty Cities?

America is again being ripped off and ALL the Sheep can say is China is going to own U.S.?


the shear level of stupid is fucking stupefying!

Mon, 08/15/2011 - 10:43 | 1561465 SheepDog-One
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China is no better off or smarter...theyre just a more brutal dictatorship, for the moment.

Mon, 08/15/2011 - 11:10 | 1561552 Mountainview
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But they don't owe a dime to the US.

Mon, 08/15/2011 - 11:11 | 1561554 Cdad
Cdad's picture

Exactly, Dog.  And I suspect, as usual, they are the morons buying Euro dollars as if they are a screaming buy...exactly ahead of further revelations that it will be the currency that fails first.

This market is so stupid...stupid as a criminal syndicate Wall Street banker, you might say.  Dumb as a BlowHorn anchor person.


Mon, 08/15/2011 - 11:22 | 1561595 SheepDog-One
SheepDog-One's picture

Im focused on this Jacksons Kornholing event or whatever its called where all the banksters gather....wheres the need for QE? All I see is market euphoria! A couple weeks ago it looked like 'Uh oh, here they go setting up for a BIG market drop....no apparently not just a few hundred points now with todays +200 and Fridays +500....with days like that wheres the panicked bleats for help from the sheeple!

Well anyway Im buying some Vaseline stock before this bankster 'Jackson Kornhole' event whatever it is, sounds like a terrible place to be.

Mon, 08/15/2011 - 11:47 | 1561693 HellFish
HellFish's picture

Jackson Hole.  Ahhh to have a JDAM...

Mon, 08/15/2011 - 11:48 | 1561697 Cdad
Cdad's picture

The ZH brotherhood should have planned a gathering there this year.  Wyoming is a great place to be in the summer, and the protesting would have been fun.  

As for what they can do with that meeting...I rather think it is pretty close to nothing, Dog.

Mon, 08/15/2011 - 12:52 | 1561915 Ricky Bobby
Ricky Bobby's picture

Sheep-  Don't forget to mention the Middle kingdom's 500 million slaves. Damn the rest of the world's elite are just envious.

Mon, 08/15/2011 - 10:40 | 1561450 silvertrain
silvertrain's picture

dont the fed themselves own the most? If thats the case then one would assume that they also control it..

Mon, 08/15/2011 - 10:41 | 1561452 monopoly
monopoly's picture

Writing is on the wall and Russia is reading it correctly. China will too, just be patient. It will all come together for us.

Mon, 08/15/2011 - 10:49 | 1561485 HungrySeagull
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Russia right now sits on such riches as may be found in resources. They don't need paper to make money.

Mon, 08/15/2011 - 10:47 | 1561479 Ranger4564
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You want safe haven, may I suggest you look at this?


There is a more significant message in that article and it's not about safes.


Mon, 08/15/2011 - 11:18 | 1561580 Absinthe Minded
Absinthe Minded's picture

I don't know about spending six months in a vault with people I don't know. What happens when you get a group of 20 or so who decide they are going to snuff a couple out quietly every night to make the food last longer than the six months, just in case. I could see mass chaos and paranoia turning that vault into a cage match that would make the Apocalypse look mild.

Mon, 08/15/2011 - 13:45 | 1562183 Ranger4564
Ranger4564's picture

Yes, but knowing the probabilities, you could play along like you would enter the vault with them, place a video camera in there, then sell television rights, become a filthy rich producer or something, and forget about the cage, except that there are 20 or so people in there making you a lot of money.  Of course, you come up with some excuse not to enter the cage, just before the need arises, so you can be outside watching the chaos.

Or, you could just put your jewels in there and no one needs to die. 

Your choice.  Either way, you come out on top.  Cool alias by the way... and nice avatar also.  You think you'll need all those 9 lives?

Mon, 08/15/2011 - 10:48 | 1561480 SheepDog-One
SheepDog-One's picture

Everyone forget about QE3, which has been driving markets for the last 6 months? Wheres the need for QE3 at all, with the DOW comfortably popping +200 every open?

All is well, no QE....well unless theres some HUGE event planned to cause sudden fear and panic and begging for QE because right now theres nothing but total Hindu cow calm out there.

Mon, 08/15/2011 - 10:49 | 1561483 Everybodys All ...
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QE3 and more treasury purchases is virtually a given unless of course the market continues down as fear grips all.

Mon, 08/15/2011 - 10:53 | 1561495 SheepDog-One
SheepDog-One's picture

What? So now QE case is made based upon 'all is well'? Wheres the need for it, if in 5 hours of trading the DOW can climb +700 points? 

QE? Where and why?

Mon, 08/15/2011 - 11:02 | 1561533 Everybodys All ...
Everybodys All American's picture

It is simply a supply and demand issue. The demand on US Treasuries can only be completed if the Fed is the major buyer. Otherwise expect failed auctions or higher rates.

Mon, 08/15/2011 - 11:13 | 1561561 SheepDog-One
SheepDog-One's picture

LOL, 'supply and demand' and mad scramble for .01%...yea really awesome man. The FED is the #1 buyer of their own debt....uh huh lets see how long that can roll on for.

Mon, 08/15/2011 - 10:51 | 1561489 AnAnonymous
AnAnonymous's picture

Good one. So China, that was touted as one of the first rats to flee the US boat, is still on deck, pushing at the wheel to maintain the US world order.

Meanwhile, all the longtime allies no longer show such a dedication.

How to interpret it in a US citizen way?

"China wants the destruction of the US, they hate on us. They are not our friends. They want global hegemony"

"Our lifetime friends and allies are under Muslim, negro dominion, as shown by the evidence they refuse to help us"

Welcome to the US world order, a world order in which the US middle class is bled to death to support the rest of the world.

Mon, 08/15/2011 - 10:52 | 1561492 RobotTrader
RobotTrader's picture

With the 5-yr. yield still at 0.96% I doubt anybody is seriously worried.....

Uncle Gorilla is enjoying a once in a lifetime opportunity of rolling over short term debt at near zero cost.

And 5-yr. at under 1% must be a total bonanza for the Treasury Dept.

Mon, 08/15/2011 - 10:56 | 1561507 SheepDog-One
SheepDog-One's picture

Right! No ones worried about anything! Theyve magically discovered that you can just 'roll' your debt at 0%, and fully fund everything, its a fuckin miracle really!  In fact I just heard Obama is changing the name of the country to 'Glitter Rainbow and Loilipop Land'!

Mon, 08/15/2011 - 10:59 | 1561515 topcallingtroll
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Compared to the rest of the world we are lolipop land, sheepdog.

You should travel and get out more.


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