The metals seem almost locked at the hip with equities at this point in the credit crisis. Its an idle liquidity thing, driven by negative real interest rates on savings and sovereign debt. The real economy offers few productive outlets and the recovery cannnot obtain traction because the government has not corrected the abuses and distortions that created the problem in the first place.
As one might expect, la Douleur appears to be struggling to break out higher, and avoid falling over a rising wedge. It can go either way. Lower seems a bit more likely, but in the world of fiat, these things are relative.
Foreign governments, of at least the non-client state kind, appear to be continuing to eschew Treasuries.
TIC Report Shows China Sold Treasuries Again - WSJ
"China sold U.S. Treasury securities in March, reducing its holdings for the fifth straight month while remaining the largest foreign holder, the Treasury Department said Monday.Let's see, the Fed buys Yen, and the BOJ buys Treasuries.
Overall, foreigners were net buyers of long-term U.S. financial assets in March, according to the monthly Treasury International Capital report, known as TIC.
China's holdings fell $9.20 billion to $1.145 trillion, following net selling of $600 million in February.
Meanwhile, Japan has been a heavy net buyer in recent months, accumulating Treasurys at record levels. Japan remained the second-largest holder of Treasurys, lifting its holdings ..."
You put your right hand in, you put your right hand out, you put your right hand in, and you shake it all about...
Looks like DSK isn't the only one doing the hokey pokey.
