Bond Selling Seems Forced

It's worth noodling on who is selling bonds right now, because it sure does seem forced. With the help of my colleague, Matt Horween, let me give you some thoughts on the natural sellers and why they might be selling.

Foreign governments own a huge percentage of $15 odd trillion in U.S. government debt -- perhaps as much as 45%-50% of all bonds. China alone owns $1.2 trillion in bills notes and bonds. Japan owns almost a trillion in bonds. Brazil has $200 billion. Wow, those are some real weak holders. China's got to be dumping like mad and that could be a huge source of repatriated dollars for a country that's starting to awaken, as the inching higher Baltic Freight index shows and the purchasing manager's index, proves, given that it went north of 51 when last month's reading was 47. How can Brazil maintain its holdings right now? The country is totally strapped. And tell me that Japan doesn't want some of that money-- although they sure don't want to do anything to move up the yen, which is what would happen if they repatriate too aggressively....318 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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