To all the naysayers and doomsday mongering crowd….
‘Reverse Diversification’ Boosts Global Demand for U.S. Assets
May 17 (Bloomberg) — “Reverse diversification†boosted global demand for long-term U.S. financial assets to a record as the European fiscal crisis may be beginning to translate into increased demand for dollar assets.
Purchases of equities, notes and bonds totaled
$140.5 billion in March, more than double economists’
projections, after net buying of $47.1 billion in February, the Treasury Department said today. Treasury purchases rose by the most since June as China, the largest lender to the U.S., added to its holdings for the first time since September.
“Diversification was a major deadweight on the dollar last year and reverse diversification is now a major source of vulnerability for the euro,†said Alan Ruskin, head of foreign- exchange strategy at Royal Bank of Scotland Group Plc in Stamford, Connecticut. The crisis may result in 2 percentage points of “growth divergence in the U.S.’ favor,†he said in a telephone interview today.
Signs of a sustained economic recovery, including a rebound in earnings and stock prices, may increase demand for U.S.
investments as concerns mount about the sustainability of government debt in Europe, economists said. The world’s largest economy has expanded for three consecutive quarters and added 573,000 jobs in the first four months of the year.
The rise in demand for Treasuries came even as yields rose across the yield curve in March, with 2-year note yields rising to 1.06 percent from 0.80 percent and the 10-year note yields climbing to 3.83 percent from 3.61 percent. Two-year note yielded 0.78 percent, while 10-year note yielded 3.45 percent today.
‘A Safe Haven’
Demand at Treasury auctions from indirect bidders, a class of buyers that includes foreign central banks, rose in April in five of the six maturities that were also sold in March, dipping only for the two-year note.
Including short-term securities such as stock swaps, investors abroad purchased a net $10.5 billion, compared with net buying of $9.7 billion the previous month.
“Foreign institutions and individuals are still turning to the U.S. as a safe haven,†said Paul Christopher, senior international investment strategist at Wells Fargo & Co. in St.
Louis. “There was some concern foreigners were abandoning the U.S. currency. That fear was misplaced.â€
“‘Reverse Diversification’ Boosts Global Demand for U.S. Assets”
Re-write:
“‘Ghetto Diversification’ Boosts BedStuy’s Demand for U.S. Asshats”
exptext,
sure religous worship is beautiful and a given right in America,
when did I say it wasn’t?
wasder,
the numbers are from a national intelligence estimate from a couple of years ago.
1% was the conservative estimate.
gotta go to the dojo now.
…but, I’ll be back
muuuuhhaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.
Biff -congrats
I like booze better than soap too.
m4l, you need to talk to my agent.
To all the naysayers and doomsday mongering crowd….
‘Reverse Diversification’ Boosts Global Demand for U.S. Assets
May 17 (Bloomberg) — “Reverse diversification†boosted global demand for long-term U.S. financial assets to a record as the European fiscal crisis may be beginning to translate into increased demand for dollar assets.
Purchases of equities, notes and bonds totaled
$140.5 billion in March, more than double economists’
projections, after net buying of $47.1 billion in February, the Treasury Department said today. Treasury purchases rose by the most since June as China, the largest lender to the U.S., added to its holdings for the first time since September.
“Diversification was a major deadweight on the dollar last year and reverse diversification is now a major source of vulnerability for the euro,†said Alan Ruskin, head of foreign- exchange strategy at Royal Bank of Scotland Group Plc in Stamford, Connecticut. The crisis may result in 2 percentage points of “growth divergence in the U.S.’ favor,†he said in a telephone interview today.
Signs of a sustained economic recovery, including a rebound in earnings and stock prices, may increase demand for U.S.
investments as concerns mount about the sustainability of government debt in Europe, economists said. The world’s largest economy has expanded for three consecutive quarters and added 573,000 jobs in the first four months of the year.
The rise in demand for Treasuries came even as yields rose across the yield curve in March, with 2-year note yields rising to 1.06 percent from 0.80 percent and the 10-year note yields climbing to 3.83 percent from 3.61 percent. Two-year note yielded 0.78 percent, while 10-year note yielded 3.45 percent today.
‘A Safe Haven’
Demand at Treasury auctions from indirect bidders, a class of buyers that includes foreign central banks, rose in April in five of the six maturities that were also sold in March, dipping only for the two-year note.
Including short-term securities such as stock swaps, investors abroad purchased a net $10.5 billion, compared with net buying of $9.7 billion the previous month.
“Foreign institutions and individuals are still turning to the U.S. as a safe haven,†said Paul Christopher, senior international investment strategist at Wells Fargo & Co. in St.
Louis. “There was some concern foreigners were abandoning the U.S. currency. That fear was misplaced.â€
I got 500 with my absolutely hysterical post at 4:29.
I’m SO awesome!!!
“I take it you’re talking some other God?”
Wait, I thought there was only ONE God.
I think that Denton is the Anthony Kennedy of the OT.