Disliked{quote} is it possible some foreign funds are selling US equities and then convert money into other currencies or into US bonds? Then data is irrelevant.Ignored
im going with the same old story. China. Probably had to buy 80-90bn in US notes in March and April alone if their reserves grew by 129bn in q1.
http://www.efxnews.com/story/24119/g...ur-dollar-call
This flow is going to go away soon. Nothing new though, my same old thesis.
Its bad for the fed because assuming china has to target their purchases in the areas of the curve where theres the most size 0-5 year... it prevents short term rates from reflecting rate hike risks.
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