Chillin' out till it needs to be funded
first published at benschilibowl.wordpress.com
Even as China maintained a vice-like hold on its multifarious spread of economic activity, its banks managed to lend out $1T in 10 months of this year and China thus wants to keep up more control on its economy thru regulated lending.
What we found more surprising was that US’s own bankrupt test state California managed to raise $4.4 billion in Revenue Anticipation Notes and will continue with $2bln in Build America Bonds at hardly a 1.5% premium in short-term markets even as concerns over the $2.8 T muni market continued to hold everyone in a tizzy. The Fed treasuries ( TBT for the 20 yr Treasury ETF) also managed to right themselves having spiralled after the QE2 program took wind out of their sails in an argument with the market and California ill get another reprieve this week as it completes the $10 bln borrowing program in tough conditions anticipated.The US in fact managed a cool $80 bln in October in Foreign investment interest ( in the case of US, this is dominantly in debt)