Wednesday, December 22, 2010

Central banks outside the U.S. Treasuries sold in late November and December for the first time since June

Central banks outside the U.S. Treasuries sold in late November and December for the first time since June, stimulating the biggest monthly loss in a year for government bonds.

The Treasury letter graphics DAY held at the Federal Reserve and foreign central banks and governments. It also shows the yields of U.S. 10 years of climbing in December to a maximum of seven months. Called custody holdings rose to a record $ 2,611,000,000,000 Nov. 17, according to the U.S. central bank. The figure fell $ 2.25 billion in the last week of November, and official foreign holders have sold $ 1.5 billion of Treasuries in December.

"Foreign central banks have been drastically reduced their purchases of Treasury bonds, led analysts at JPMorgan Chase & Co. by Srini Ramaswamy in New York, wrote in a report of 17 December. "This sharp decline in external demand likely contributed to the selloff in Treasuries, "said JP Morgan, one of the 18 primary dealers required to bid in the sale of public debt.

Treasury bonds gave investors a loss of 2.0 percent this month, according to Bank of America Merrill Lynch indexes. The last time the U.S. government debt fell more was in December 2009, when it fell 2.6 percent. Investors outside the U.S. are about half the nation's trade debt, which has grown by more than 50 percent since early 2009 to $ 8,750,000,000,000.

"This is terrifying,"said Tomohisa Fujiki, interest rate strategist at BNP Paribas Securities Japan Ltd. in Tokyo. "It was one of the major factors that massive selloff." U.S. unit of BNP is another primary dealer.

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