[mattduke]

Do you own "riskless" treasuries?

telegraph

[Spanktron9]

Matt-

I work in a major Financial and brokerage bank. The denial here is palpable. I am consistently told by more experienced brokers that a dollar collapse "can't happen". Of course these same people told me not to worry about a financial collapse 6 months ago.

BTW, What is the photo in your avatar? It has been driving me nuts for a year!

[PrestonSturges]

What if you have your money parked in a USD money market fund???

Back to a Euro mutual fund when the storm hits?

[eXpat]

Treasuries bond "bubble" slowly bursting

NEW YORK (Reuters) - The Treasury bond "bubble" looks like it's leaking air.

Over the last three weeks, investors have been selling U.S. Treasury bonds heavily, giving the 30-year Treasury bond's yield this week its biggest weekly jump since 2001, shortly after the September 11 attacks on the United States.

The sudden rise in lending rates complicates the U.S. push to lower mortgage rates and other consumer borrowing costs and kick-start the fragile American economy.
...
The proximate cause for the selling in Treasuries stems from expectations that the government will need to borrow about $2 trillion of debt this year to finance its rescue packages for the battered banking sector. Already, outstanding Treasury debt stood at $5.5 trillion at the end of September.

With this in mind, investors are fleeing Treasuries. In fact, while the Dow Jones industrial average .DJI is down 7.5 percent so far this year, the 30-year Treasury bond is down even more at 10 percent. This is contrary to the usual dynamic, where Treasuries move in the opposite direction of stocks.

link

[patience]

Quote:

"Prof Buiter said: "There will, before long (my best guess is between two and five years from now) be a global dumping of US dollar assets, including US government assets."


I find it hard to believe it will take that long. But, I've been surprised up till now at the creativity of the Fed and US.gov in keeping it going this long.

[angrybill]

"I would not say that the future is necessarily less predictable than the past. I think the past was not predictable when it started"