Japan about to dump $100B in US Treasuries?

www.businessinsider.com...

No wonder yields on the 10 year are up so much this week.

"Japan denies it, but rumors persist that the country may dump Treasuries. Bloomberg continues to fan the flames.

Bloomberg: Speculation that the Japanese government plans to sell $100 billion of U.S. Treasury debt to pay for domestic spending may impede the Obama administration’s borrowing plans.

Japan has been this year’s biggest buyer of Treasuries, which means it has done more to help finance the widening U.S. budget deficit than any other country. Its holdings have risen by $125.5 billion, according to data compiled by the Treasury."

reply to post by leo123


Ouch!

Wonder whether it's linked to the now infamous Obama bow?

See report in The New York Times link to article

[edit on 4-12-2009 by curioustype]

I doubt it.

I think it is more related to the fact they are desperate for cash to run their day to day expenses.

Some things are just painfully predictable consequences of repeated idiotic mistakes. Like if a nation racks up it's credit card with no means to pay, the bank cuts it off to minimize losses, in this case the Bank is Japan, and it will only be a matter of time before the Bank of China, and the rest of the world start doing the same.

It may just be speculation today, but tomorrow is another day. We are in uncharted waters and. To those who thought the financial crisis was over, I'm afraid it has only just begun.

[edit on 4-12-2009 by projectvxn]

Originally posted by projectvxn
Some things are just painfully predictable consequences of repeated idiotic mistakes. Like if a nation racks up it's credit card with no means to pay, the bank cuts it off to minimize losses, in this case the Bank is Japan, and it will only be a matter of time before the Bank of China, and the rest of the world start doing the same.

It may just be speculation today, but tomorrow is another day. We are in uncharted waters and. To those who thought the financial crisis was over, I'm afraid it has only just begun.

[edit on 4-12-2009 by projectvxn]

Great post.

Thx.

ummm.. check this out if you invest in T-bill

seekingalpha.com...

Good luck and good night

Last week when the Dubai crisis hit that was the first thing that came into my mind - that when these oil rich Arab countries start feeling the pain they're going to start demanding U.S. debt redemption. Not to mention China and Japan who have their own problems. Each day they wait to do this the less they get back too. Interesting times 4 sure!

Japan Releases Stimulus Package as Recovery Weakens

Japan has been on a domestic spending spree since the beginning of the financial crisis in late 2008. They have spent hundreds of billions of dollars, and will probably be tapped out soon if they don't start dumping treasuries.

Anyone remember this story from back in June?

2 Japanese Carrying $134 Bil Worth Of U.S. Bonds Detained in ItalyHere at ATS

As interesting as it was then, it surely makes you wonder now.

News Wire - An 83 year old Japanese national with $100 billion in US long bonds secreted in her undergarments , was detained at the Zimbabwean border today.

Just kidding.

US-Japan Rift Grows As Obama Snubs Prime Minister Hatoyama In Copenhagen

This rift (and apparent snub) comes amid rumors of Japan intending to dump $100 billion of its Treasury holdings. We've been skeptical of that -- and still are; after all, Japan wants to weaken its yen -- but the drift apart seems quite clear.

Full Text

Or am I ?