Are Foreign Investors Done With U.S. Treasuries?

Posted: 6/18/2013 11:32:48 EDT

The Biggest Bond Bubble In History Is Turning Into Carnage

From Testosterone Pit:

Ten-year Treasury notes have been kicked down from their historic pedestal last July when some poor souls, blinded by the Fed’s halo of omnipotence and benevolence, bought them at a minuscule yield of 1.3%. For them, it’s been an ice-cold shower ever since. As Treasuries dropped, yields meandered upward in fits and starts. After a five-week jump from 1.88% in early May, they hit 2.29% on Tuesday last week – they’ve retreated to 2.19% since then. 

Now investors are wondering out loud what would happen if ten-year Treasury yields were to return to more normal levels of 4% or even 5%, dragging other long-term interest rates with them. They know what would happen: carnage! 

Wholesale dumping of Treasuries by exasperated foreigners has already commenced. Private foreigners dumped $30.8 billion in Treasuries in April, an all-time record. Official holders got rid of $23.7 billion in long-term Treasury debt, the highest since November 2008, and $30.1 billion in short-term debt. Sell, sell, sell! 

Uh-Oh: Are Foreign Investors Done With U.S. Treasuries?

Time for Uncle Sam to pay the fiddler? Bloomberg chief markets correspondent Scarlet Fu takes a disconcerting look at the record level of sales of U.S. treasuries sold by foreign investors in April.

Video: Ron Paul Says Gold Could Go to Infinity, Dollar May Collapse

Former Texas Congressman Ron Paul still likes gold. A lot. In fact, he thinks gold could go to "infinity" and the US dollar could collapse. He shares his optimism with CNBC's Jackie DeAngelis.



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