The Treasury is investigating whether investors are accumulating government bonds in order to...


The Treasury is investigating whether investors are accumulating government bonds in order to boost prices after $78.87B worth of 10-year notes used as collateral in repo market weren't returned to the loan counter-party on Monday. Over the week, the cost of borrowing Treasurys for use in the repo market or for short sales jumped more than three-fold, only easing after a government auction.

Comments (3)
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    If so many are short the Treasury, a squeeze could be in the making.

     

    No wonder Jeff Gundlach is long.
    17 Mar 2013, 04:27 AM Reply Like
  • Tschurin
    , contributor
    Comments (381) | Send Message
     
    "whether investors are accumulating government bonds in order to boost prices". Yes, and they were even so bold as to discuss the plan publicly. I believe it's called Quantitative Easing, and I believe the ring leader is this guy named Ben Bernanke ;-).
    17 Mar 2013, 12:34 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
     
    The search for well valued collateral continues, with Treasuries at the front of the pack. I would expect many repeats of these events through 2018, though we may see some fluctuations at whatever point the Fed stops buying Treasuries. This sort of activity should be a clear sign to the Fed that they need to ease off there current policy sooner rather than later.
    17 Mar 2013, 03:13 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs