US BONDS

Discussion in 'Markets & Economies' started by errol43, Oct 7, 2012.

  1. errol43

    errol43 New Member Silver Stacker

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    Does anyone here on SS know if the Australian Government, Reserve Bank, Australian Banks or Private Corporations BUY US Bonds??

    Regards Errol 43
     
    errol43, Oct 7, 2012
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  2. Old Codger

    Old Codger Active Member Silver Stacker

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    Old Codger, Oct 7, 2012
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  3. errol43

    errol43 New Member Silver Stacker

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    Thanks Old Codger,,Going by link on your Post, it seems like Australia has $25 billion dollars invested in US bonds.

    Wonder how you find out who actually holds them?

    Thanks for your prompt answer.

    Regards Errol 43
     
    errol43, Oct 7, 2012
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  4. Old Codger

    Old Codger Active Member Silver Stacker

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    IDIOT RBA wallahs.

    IDIOT 'Future Fund' wallahs.

    IDIOT Superannuation wallahs.

    IDIOT Investment Fund wallahs.

    (SENSIBLE Big 4 banks do NOT buy US Treasuries paying 1%, when they can lend to OZ home buyers at 6%).
     
    Old Codger, Oct 7, 2012
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  5. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    What prompted the question errol?
     
    Clawhammer, Oct 8, 2012
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  6. hyperinflation

    hyperinflation New Member Silver Stacker

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    USD denominated bonds (regardless of issuer) or US government bonds specifically?

    Companies that have USD cash holdings will normally put them into US gov bonds, as they are the most liquid tradeable instrument... and it still has a positive yield. I imagine companies liek BHP, that do most of their business in USD, would have substantial holding of US Treasuries. The RBA would also invest their USD holdings in US T's due to their madate to hold only liquid instruments.

    Funds with a madate to invest in USD assets will tend to hold a mix of US T's and USD denominated corporate bonds. Aus banks will also have holdings of USD, some of which they will use to buy US T's...

    Even though US T's only yield 1%.. its still better than USD cash.. yielding a big fat 0%.

    US T's are also very good at hedging USD interest-rate risk. All banks/brokers that make markets in USD bonds will have a position in US T's (including the majors and the Aus branches of the foreign banks)
     
    hyperinflation, Oct 8, 2012
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  7. errol43

    errol43 New Member Silver Stacker

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    Wanted to find out if Australiav Banks are exposed to USA government bonds..It is bad enough with Fractional Reserve banking as well as Derivatives.Just was keen to know if they or the Australian Government buy USA government bonds. With Australia now having to buy a much greater % of our oil needs and having to pay in US$, I am just trying to get my head around on how it all works.

    Regards Errol 43
     
    errol43, Oct 9, 2012
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  8. metalzzz

    metalzzz Well-Known Member

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    Might be time to buy TBT soon
     
    metalzzz, Oct 10, 2012
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  9. hyperinflation

    hyperinflation New Member Silver Stacker

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    If you have USD you are exposed to US government bonds... If the USA defaults, your USD becomes pretty much worthless...
     
    hyperinflation, Oct 11, 2012
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