Sunday, October 16, 2011

Central Banks Selling Most Treasuries Since 2007 Prove No Barrier to Rally

http://www.bloomberg.com/news/2011-10-16/central-banks-selling-most-treasuries-since-2007-prove-no-barrier-to-rally.html

International central banks are selling the most Treasuries since the credit crisis began just as institutional investors load up on U.S. government bonds.

The Federal Reserve said its holdings of U.S. government debt on behalf of central bankers and institutional investors outside America has plunged $76.5 billion in the last seven weeks, the most since August 2007. At the same time, bond mutual funds are adding Treasuries, banks have increased their holdings 45 percent in the past five years and the Fed has added $656 billion to its balance sheet this year.

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