Foreign Central Banks have stopped buying Treasuries

When officialdom boldly claimed that a huge increase in January 05 TIC data was in response to Caribbean Hedge Fund buying of long US Treasury obligations back in March of 05 – Why did news outlets like CNBC fail to report concerns regarding massive implied hedge fund losses in these Caribbean based funds then? If anyone cares to recall, the yield on 10 year treasuries was about 4.00 % in January, when these subject securities were allegedly purchased by hedge funds – and by the beginning of March the 10 year yield had ballooned to 4.50%? Blood should have been running in the street then, which media outlets like CNBC should have been reporting on. Instead, they remained silent.

The proposition that hedge funds ’slipped in’ and completely replaced the machinations in the auction process of both the central banks of China and Japan is completely and utterly preposterous. With each successive release of TIC data, it’s becoming clearer that traditional buyers of US debt are not and have not been in the picture for a few months – this is reality – according to the Fed and Treasury’s own numbers.

Safehaven.com