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re: It's Official - The Federal Reserve Raises Rate 1/4 Point (Discussion Thread)

Posted on 12/18/15 at 11:01 am to
Posted by LSURussian
Member since Feb 2005
127102 posts
Posted on 12/18/15 at 11:01 am to
quote:

How does that not make sense??
quote:

why would Germany or the likes invest its sovereign money in a negative yield where they could put it in a AAA rated us treasury with a positive yield?
That's how....



Seriously, I have no idea what you're trying to say and I'm pretty sure you don't either.

Germany's government does not issue Bundesanleihen only to arbitrage the proceeds from them using another country's debt issues. ETA: Besides, Germany's sovereign debt issues, Bunds, are not denominated in U.S. dollars. They are denominated in euros.

If you're trying to say European banks might be buying U.S government bonds as an alternative to buying European issued securities, then okay, that's a possibility. But those are NOT sovereign entities buying U.S. bonds. Those entities are private, not sovereign.

What is your finance/economics background?
This post was edited on 12/18/15 at 11:08 am
Posted by Shepherd88
Member since Dec 2013
4597 posts
Posted on 12/18/15 at 11:10 am to
So you're saying that a foreign nation can not own US debt?

And I'm in the field but that's all I prefer to say.
This post was edited on 12/18/15 at 11:12 am
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