The fear that foreign holders of US Treasury bonds are diversifying away from US Dollar-denominated assets is materializing. China, the largest holder of US Treasuries, is doing exactly that, while investing in natural resource companies and assets.
In order to prevent bond auctions from failing, mysterious buyers from England are stepping up to the plate to fill in the gap. Which is surprising since the UK may possibly be in worse fiscal shape than the US.
http://www.zerohedge.com/article/tic-data-confirms-china-bond-sell-continues-foreigners-dump-corporate-bonds-and-stocks
Monday, August 16, 2010
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