Demand for new Treasuries from their biggest owners is proving impervious to rising yields and the retreat of Wall Street dealers.Bids submitted by investors including mutual funds, foreign central banks, pension managers and insurance companies totaled 83 percent of Treasury debt auctioned this year, compared with 84 percent in 2012 and 37 percent in 2008 at the peak of the worst financial crisis since the Great Depression, according to data compiled by Bloomberg.http://www.bloomberg.com/news/2013-09-22/demand-strong-as-ev...The article goes onto say the bid-to-cover ratio of 2.88 shows aggressive bidding and was the 4th highest on record.
http://online.wsj.com/article/SB1000142412788732466560457908...Analysts continue to play down any concerns that China might dump its U.S. bondholdings, a move that could potentially expose the U.S. government to an interest-rate shock and dealing a blow to the U.S. economy. [...]As overseas investors came back into the market in July, U.S. investors continued to pull money out. A total $14.8 billion was yanked from U.S.-listed bond mutual funds and exchange-traded funds in July following a record outflow of $69.1 billion in June, according to TrimTabs Investment Research. In August, there was $42.9 billion net redemption again for the sector.Some analysts cautioned that foreign investors' appetite for U.S. debt may have waned again in August. Bond yields shot up again that month to multiyear highs amid renewed fears over a shift in the Fed's easy-monetary stimulus. As yields rise, bond prices fall.
The article goes onto say the bid-to-cover ratio of 2.88 shows aggressive bidding and was the 4th highest on record. Doom-and-gloomers don't get the point of the joke that ends "I don't need to outrun the bear, I just need to outrun YOU."As crappy as the US is (and CC is arguably largely correct about this), it's still be safest place to be.If you're sitting in a boat with a hole in the hull *cough*Euro*cough*, a boat which is merely leaky is a far better pace to be.
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