4 week t-bill auction: Something VERY Strange Is Happening With Treasuries – Written by Graham Summers – Gains, Pains, & Capital
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The systemic risk of the repo system – Felix Salmon – Tyler Cowen has a copy of Gary Gorton’s new paper, and likes it. The excerpt he gives us raises a serious point about fragilities in the banking system: banks fund themselves in the repo market so much that they need about $12 trillion of collateral just to keep ticking over. So if you implement a 20% haircut on repos, banks would need to raise $2 trillion, which is impossible … – Reuters Blogs
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Concerns grow over China’s sale of US bonds – By Ambrose Evans-Pritchard – Evidence is mounting that Chinese sales of US Treasury bonds over recent months are intended as a warning shot to Washington over escalating political disputes rather than being part of a routine portfolio shift as thought at first. – Telegraph.co.uk
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Why China’s Rumored IMF Gold Purchase, If True, Would Be of Huge Significance
Submitted by smartknowledgeu – Zero Hedge
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Big Hedge Funds Team Up To Bet Against Euro, Predict It Will Fall To Parity With The Greenback – Joe Weisenthal – … But then, you already know that anti-Euro sentiment has hid a wild extreme, and European leaders would love nothing more than to pull a
surprise stunt that just crushes these guys. We know it’s coming. The question though is what it will be and when. … – Clusterstock at Business Insider
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has list – Montier: Was it all just a bad dream? Or, ten lessons not learnt – Posted by Prieur du Plessis – Investment Postcards From Capetown
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Debt: The Big Hangover Has Only Just Begun – By Frank Aquila - More than $1 trillion of high-yield debt will come due between now and 2015—a big potential weight on the U.S. economic recovery – BusinessWeek
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excellent interview – Dennis Gartman: The Euro Is ‘Doomed’ – Written by Lara Crigger – IndexUniverse