Dollar getting pasted; Latest on bonds
Will this impact bond prices at some point? One wonders. Foreign investors owned $2.86 trillion, or 53.6%, of the $5.34 trillion in outstanding, marketable Treasuries as of September (Data available here).
UPDATE: The DXY is now down 200 bps. This is a big move. Meanwhile, long bond futures are at the day's low -- down 26/32 in price.
UPDATE2: Indirect bidding was weak at the government's sale of $16 billion in 10-year Treasury Notes. That category of buyers (which includes foreign central banks) snapped up just 12.7% of the deal, the least since 5.8% in March 2008. However, the notes sold at a lower yield than forecast (2.67%) and the bid-to-cover ratio was strong at 2.44 (the highest since September). Bonds have rallied off their lows on this news, with the futures recently up 9/32 in price.