The trade is still miniscule compared to the more liquid U.S. government bond market.
That was hardly the reassurance that an increasingly fractious government bond market needed and forced fresh sales.
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The U.S. government debt market is the largest and most liquid money market and government bond market in the world.
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Vanguard Long-Term Government Bond ETF ( VGLT) seeks to provide a diversified exposure to the long-term U.S. government bond market.
But as the federal deficit swelled, the government bond market boomed.
Worries about the euro zone's sovereign-debt crisis and slowing growth in the U.S. have sent global investors into the safe harbor of the U.S. government bond market.
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Len, do you really believe that the government bond market will regain confidence when the politicians agree to resume borrowing without closing the long-term gap by even 10%?
That points to an extra one percentage point on interest rates for the higher risk that comes with being small and in an illiquid part of the government bond market.
The Bank of Japan has been grappling with unexpected swings in the government bond market since early April, when its new governor, Haruhiko Kuroda, announced a drastic shift in policy aimed at doubling the amount of cash circulating in Japan's economy.
They are all investment grade, some even AA. Their governments balance sheets are fiscally sound, way better than nearly all of Western Europe and even the U.S. In Asia, the government bond market is highly liquid, with yields between 100 to 175 basis points over Treasury bonds.
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The risk must be that whatever government emerges will only prove an interlude before a fresh crisis, in which external pressure once again is required to force Rome to confront the Italian economy's structural shortcomings, perhaps in return for a deal with the European Central Bank to support the government bond market under its Outright Market Transactions program.
TOKYO A week after Japan's central bank started a huge bond-buying campaign to drive down yields in the country's quadrillion-yen government-bond market, yields instead have risen, a sign of the huge headwinds the bank faces in its push to end 15 years of deflation.
That there is so little foreign money in Japan's government-bond market merely reduces the likelihood of panicky sell-offs.
The government-bond market has been confused since the Treasury's surprise decision in late October to stop issuing 30-year bonds.
The government-bond market is dominated by local banks and insurance firms which are forced to buy thanks to liquidity and solvency rules.
For its part, the finance ministry has tried to prop up the government-bond market by issuing new bonds over the past two years.
The same phenomenon can be observed in the index-linked government-bond market, where both interest payments and the maturity value are pegged to inflation.
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That created fresh worries for the Japanese government-bond market.
One advantage of this is that it would eliminate the cost of re-establishing a government-bond market in a couple of decades' time, when the rising costs of ageing populations will surely force governments to start borrowing again.
These include the stockmarket, the bond market (government and corporate) and the money market for short-term securities, such as commercial paper.
The brighter outlook for the Thai economy has encouraged the government to return to the international bond market to raise money.
Even if its net debt were zero, a government could still foster a liquid bond market by continuing to issue bonds and investing the proceeds in domestic or foreign private-sector assets.
U.S. stock and commodity markets will be open today, but government offices, many banks and Treasury bond market will be closed.
Government bond prices edged higher, reflecting increasing market bets on a rate cut at the central bank's next policy review on Tuesday.
DTB, wrested away a key market in German government-bond futures.
Yields on 10-year government bonds in China, the biggest bond market in Asia excluding Japan, are near 3.8%, while yields on similar South Korean bonds are trading at about 3.02%.
The market now expects domestic Japanese Government Bond (JGB) holders to cash out and seek higher yield solace in U.S. Treasuries and other high-grade foreign bonds.
Meanwhile the side-effect of QE is to heavily suppress market forces in the bond market: so that the government always has a buyer for its debt... which is effectively itself.
The figures come as economists are forecasting a possible recession this year. (See: "Goldman: Recession Possibly Here") U.S. government bond prices extended gains after signs of labor market weakness and the Commerce Dept.
So far, talk of yet another emergency budget to boost government spending later this year has failed to rattle the bond market.
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