China to replace Fed buying USTs?

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agauinvest
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China to replace Fed buying USTs?

Hard to believe, but it looks like China is taking up the slack, even before the end of QE2?  Posted for thoughts as to why they are buying.

http://finance.yahoo.com/news/China-increases-holdings-of-apf-1664839992.html?x=0

Edited by admin on 11/08/2014 - 06:07
tmosley
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Not much of a bump.  Not sure

Not much of a bump.  Not sure I would read too much into it.

caramel
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yeah, that's about a day's

yeah, that's about a day's worth of POMO.  Would need to see a much higher month over month increase.

agauinvest
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But that's the amount of the

But that's the amount of the increase, and would imply expiring treasuries would also have been replaced, which would figure into the total purchases, right?

Shill
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Fed buys $4.7 billion in Treasury debt - MarketWatch

http://www.marketwatch.com/story/fed-buys-47-billion-in-treasury-debt-2011-06-15?link=MW_home_latest_news

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caramel
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good point.  

good point.  

Cleburne61
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Peter Schiff makes the point

Peter Schiff makes the point that they'd have to purchase another 5 trillion of treasuries over the next 3 years or so with the rate our government spends...

The commentators all say "China is trapped, they've got 1 trillion in treasuries...they have to keep buying or they'll lose hundreds of billions".

Peter says, "If you were China, would you take your loss on 1 trillion....or a loss on 5 trillion in 3 to 5 years?" 

I believe, when the time is right, they'll cut their losses and run.  Wouldn't you?

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