Just heard Barclays is betting huge against the 10 year note since April 2008 on Bloomberg. They are gambling big with junk bonds and pushing the yield up on the 10 year note.
Since they are connected with our money all the L Funds and the F Fund that is a direct conflict of interest. They know how many Billions are in the L Funds and the F Fund every day. I will update with a link but that news just broke 10 minutes ago.
http://www.bloomberg.com/apps/news?p...d=aNCksVzJxRZA
Dealers Pare Treasuries, Signaling Fed Turning Point (Update1)
By Daniel Kruger
May 5 (Bloomberg) -- One word popped into
Charles Comiskey's head as he watched investors seeking a haven from credit-market losses pile into Treasuries in March: ``Ridiculous.''
The buying spree pushed yields to a five-year low even though rising commodity prices and a depreciating
dollar were beginning to spark inflation. The co-head of Treasury trading at HSBC Securities USA Inc. has so far been proven right. U.S. government debt has lost 2.8 percent since March 17, including reinvested interest, according to New York-based Merrill Lynch & Co. indexes.
``Rates got ridiculous,'' said Comiskey, who is based in New York and started trading in 1989.
The U.S. units of London-based HSBC Holdings Plc,
Barclays Plc of London, Deutsche Bank AG in Frankfurt and the other 17 primary dealers that trade with the Federal Reserve have compiled a $101.4 billion bet against Treasuries, data compiled by the central bank show. That's the most since the week ended Nov. 14, just before
yields on 10-year notes climbed half a percentage point over the following month.
Dealers have used any demand ``as an opportunity to move Treasuries off their balance sheets,'' Comiskey said.
The $101.4 billion represents the amount of Treasuries that dealers are using to hedge other positions and is up from $58.3 billion in the week ended March 12, Fed data show. The more they use to hedge, the bigger the wager against Treasuries.
BARCLAYS & THE F Fund & L Funds
The U.S. units of London-based HSBC Holdings Plc, Barclays Plc of London, Deutsche Bank AG in Frankfurt and the other 17 primary dealers that trade with the Fed have compiled a $101.4 billion bet against Treasuries, data compiled by the central bank show. That's the most since the week ended Nov. 14, just before yields on 10-year notes climbed half a percentage point over the following month.
The bet represents the amount of Treasuries that dealers are using to hedge other positions and is up from $58.3 billion in the week ended March 12, Fed data show. The more they use to hedge, the bigger the wager against Treasuries.
