Owen

New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today?

No probabilities involved here. A practical truism: as long as they can print money, they can pay their bills. Simple.

So you believe the government of China, on the long side of your short US bond, won't be able to pay for the settlement of the futures contract? Do you even understand how futures clearing works?


On Oct 08 05:10 PM westwest888 wrote:

> Owen - lemme guess, default is impossible because it's a 10 standard
> deviation event in your model. I would short treasuries, except
> the counterparty won't be able to pay when I'm right because they
> have no money.