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| Economy |
| World Biggest Fund Dumps Treasury Bond Holdings |
| 2011-03-09 |
| Reuters and CNBC say that Pimco's $236 billion Total Return Fund, the world's biggest bond fund, has dumped all U.S. government-related securities, including U.S. Treasuries and agency debt. Which does lead to the question, discussed in detail at Zero Hedge, of who is going to buy all these bonds if Bernanke stops, and at what price. Supply, say hello to demand. |
| Posted by:Matt |
| #9 What odds interest rates will go up in the near future? 100% unless QE III is implemented and is so massive as to dwarf I & II combined. Pimco's Treasury exit is more a confirmation of the fact that they're thinking along these lines than anything else. |
| Posted by: AzCat 2011-03-09 23:54 |
| #8 What odds interest rates will go up in the near future? |
| Posted by: trailing wife 2011-03-09 23:18 |
| #7 I was afraid you were going to say that. To clarify, as I understand it PIMCO has been reducing its treasuries position for months - today was the day it hit zero (or they claim it hit zero - these guys are bond traders, after all.) But it's extraordinary that you can have a $236B fund run by some very serious fixed-income professionals without having a nickel in treasuries, even if just on the chance that they might be wrong about the basic call. And I think that when this news hit the wire a whole bunch of Chinese officials went "Whoa! Dude!" On the other hand, the yield on the ten-year hasn't moved squat. |
| Posted by: Matt 2011-03-09 21:37 |
| #6 Who bought 'em? The US government. |
| Posted by: phil_b 2011-03-09 20:27 |
| #5 Really good question, Steve, and I haven't been able to find any answer through some brief Googling. Believe me, I want to be optimistic about this. |
| Posted by: Matt 2011-03-09 20:02 |
| #4 Hokay, so Pimco sold all their treasuries. Who bought 'em? |
| Posted by: Steve White 2011-03-09 19:02 |
| #3 "Okay, the bad news is the cancer has spread throughout your liver, so we're going to have to remove it." "What's the good news?" "Have I said anything to suggest there is good news?" |
| Posted by: Anonymoose 2011-03-09 18:47 |
| #2 Why buy something that has a large risk of a negative return on your investment? |
| Posted by: DarthVader 2011-03-09 17:28 |
| #1 Probably related. |
| Posted by: newc 2011-03-09 17:28 |