30 years T`s chart. Who´s buying?

[Southernguy]

If you follow the link, 30 YT yield is going down right to 2.5%
So, who is buying? Has the FED begun as part of it´s "Quantitative easing" policy, or are hedge funds, sovereign W. funds etc doing it?
I'm buying tbt at times, following the descent, with the hope that sooner rather than later the tide shall change.
http://chart.finance.yahoo.com/c/1y/_/_tyx

[we_are_toast]

Re: 30 years T`s chart. Who´s buying?

Me and the TBT I've been buying lately;

[quigleydoor]

Re: 30 years T`s chart. Who´s buying?

Me and the TBT I've been buying lately;

I'm on the ground looking up at you. Bought some VUSUX at the start of the month. Should be good for me until you hit the ground!

[Southernguy]

Re: 30 years T`s chart. Who´s buying?

Well I´m glad not to be alone along the ride down...
As of We are toast, you answer my question.....You've undoubtedly very big pockets!!!!!!

[audrey_girl]

Re: 30 years T`s chart. Who´s buying?

just a bunch of ordinary folks in the cayman islands


http://www.treas.gov/tic/mfh.txt

quantative easing anyone?

[FRED]

Re: 30 years T`s chart. Who´s buying?

just a bunch of ordinary folks in the cayman islands


http://www.treas.gov/tic/mfh.txt

quantative easing anyone?

Amazes us how the UK keeps ponying up.

[Slimprofits]

Re: 30 years T`s chart. Who´s buying?

Fred pointed out the UK. Why is Russia still buying? From $33.6 billion to $80.9.

This has probably been asked and answered elsewhere. What is the deal with Carib banking centers? From $105.6 billion to $219.5 between 10/07 and 10/08. Something to do with money laundering?

[Chris]

Re: 30 years T`s chart. Who´s buying?

I wouldn't really classify the Cayman Islands (the secretive home of fast money) as the UK but i take your general point

[*T*]

Re: 30 years T`s chart. Who´s buying?

Amazes us how the UK keeps ponying up.

Stuff held in trust by UK institutions for foreign entities.

[GRG55]

Re: 30 years T`s chart. Who´s buying?

Stuff held in trust by UK institutions for foreign entities.

That, or maybe it's just Mega trying to escape the ravages of New Labour...

[skurla2000]

Re: 30 years T`s chart. Who´s buying?

If you follow the link, 30 YT yield is going down right to 2.5%
So, who is buying? Has the FED begun as part of it´s "Quantitative easing" policy, or are hedge funds, sovereign W. funds etc doing it?
I'm buying tbt at times, following the descent, with the hope that sooner rather than later the tide shall change.
http://chart.finance.yahoo.com/c/1y/_/_tyx

I believe that the answer to this question is "banks". I've been looking into this t-bill bubble and I think what you have here is some tricky Fed magic.

I was reading an article yesterday that said that the way this Fed Ponzi scheme works is that the Fed lends short term money to banks at 0%, that they can roll over every day at 0%. Then, because no bank in their right mind is making any loans to people these days, the banks use their "magic" multiplier to make loans to... you guessed it... the Treasury.

I would think that by using fractional reserves, 0% short term funds and long T-bills, banks could probably multiply the 2-3% yield on long treasuries to earn up to 10-15% on whatever they can borrow from the Fed, keeping themselves, the Fed, the Treasury, and the US Government afloat without ever having to admit "printing money".

I believe that this can go on forever, as long as a) long yields are higher than 0% and b) the Fed keeps shoveling money free money to banks. Of course, when the T-Bill bubble pops, banks will eventually default on their loans to the Fed, possibly as intended, but the money laundering scheme will have filled its purpose, and the Treasury will still be loaded with long term, cheap cash that nobody can say was "printed".

Am I close?

[skurla2000]

Re: 30 years T`s chart. Who´s buying?

I believe that the answer to this question is "banks". I've been looking into this t-bill bubble and I think what you have here is some tricky Fed magic...

I'll just add that if true, this scheme is BRILLIANT! Everybody already accepts the Fed's lending facilities and nobody is watching them. Nobody questions banks fractional lending or holding Treasuries when they have excess cash... that's considered "safe". The Treasury is collecting 30 years worth of cash to fund the tide of unemployment, social services, social security, welfare, roads, bridges and infrastructure...

And the best part? Banks don't need customers anymore! And the government doesn't need taxpayers!

Imagine... no more dealing with little old lady depositors, lying business owners, whiny cheating taxpayers, demanding senators or worthless "czars" required! Just the Fed, Banks and the Treasury for boatloads and boatloads of instant, free money with no questions asked.

You ask who can buy $6 Trillion Dollars worth for Treasury Bonds? The answer could be as easy as 10% reserve requirement and the chart below.




Wow. Just... Well... Wow.

[audrey_girl]

Re: 30 years T`s chart. Who´s buying?

I'll just add that if true, this scheme is BRILLIANT! Everybody already accepts the Fed's lending facilities and nobody is watching them. Nobody questions banks fractional lending or holding Treasuries when they have excess cash... that's considered "safe". The Treasury is collecting 30 years worth of cash to fund the tide of unemployment, social services, social security, welfare, roads, bridges and infrastructure...

And the best part? Banks don't need customers anymore! And the government doesn't need taxpayers!

Imagine... no more dealing with little old lady depositors, lying business owners, whiny cheating taxpayers, demanding senators or worthless "czars" required! Just the Fed, Banks and the Treasury for boatloads and boatloads of instant, free money with no questions asked.

You ask who can buy $6 Trillion Dollars worth for Treasury Bonds? The answer could be as easy as 10% reserve requirement and the chart below.




Wow. Just... Well... Wow.

sort of makes Bernie Madoff look like small potatoes - doesn't it

[robertthegood]

Re: 30 years T`s chart. Who´s buying?

This is my first post so be kind to a newcomer. As part of the financial world primarily as a speculative, derivative trader I have a great interest in how to stay alive and perhaps prosper in the current environment. It has been a temptation to short the long bond future but restraint has paid off. A small position has been taken in the TBT. My message today though is caution. This seems like such a slam dunk trade I wonder what I am missing. The people on the other side of the trade are not all stupid. That said, the position will be added to on the way down but not to the extent to be damaging if it trades at 25!

[Verrocchio]

Re: 30 years T`s chart. Who´s buying?

This is my first post so be kind to a newcomer. As part of the financial world primarily as a speculative, derivative trader I have a great interest in how to stay alive and perhaps prosper in the current environment. It has been a temptation to short the long bond future but restraint has paid off. A small position has been taken in the TBT. My message today though is caution. This seems like such a slam dunk trade I wonder what I am missing. The people on the other side of the trade are not all stupid. That said, the position will be added to on the way down but not to the extent to be damaging if it trades at 25!

Welcome, RobertTheGood! You can see that your great interest (stay alive and prosper) is one that is evident in the postings of many others here. I hope that your first post will be followed by many more. I closed my position in TBT a few weeks ago. I now believe that the uneasy feeling that I had about TBT could be explained by the implementation of one of BBernanke's "tools:" Sell from the front of the shop, and buy from the back. In other words, the markets aren't functioning normally (the Invisible Hand of the Market has become Visible).