Who is selling bonds if Bernanke buying as a madman?

Bond purchases of Ben, but someone selling

QE2 comes, and it is not Fed purchases in large quantities with its easing quantitative of stocks.Elle purchases of government bonds, in order to drive long term interest rates must drive the price of bonds until.

But the bond market has not been as excited QE2 idea everything that promised to purchase as market fact boursier.En, just the opposite. The obligations of the Board were tumbling since late August.

For example, 30-year bonds have lost about 3.4% of their value in less than two months.This is a notable success for an income asset that gives approximately 3.9% per year.

The popular iShares 20 - year will Bond ETF (TLT) has fared worse, plunging 7.2% in less than two months.

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Investors continued to supply obligations and binding to an unusual, rate funds as was the situation throughout the year.Strategic Outlook reports that money flowing into the bond fund is on pace exceeds $ 300 billion this year, exceeded only by record 350 billion dollars flowed in the last year.

U.s. Federal Reserve continues to reinvest billion in bonds of the Board, each month, to the interest is winning on the amount of the obligations that it bought last year his first tour of the quantitative easing.

It raises the question, what makes any sale that is driving down, providing that these are feeding the bond market one Awards overwhelming the purchase of nearly - an exuberant record for investors and the purchase continues the Federal Reserve?

It is central, as in China and the Japan, holders of such a large percentage of bonds United States banks? analysts are requested for a long time how these nations would never able to downsize or diversify their holdings to link U.S. without devastating on markets possibly selling the resistance being created by the unusual purchase of investors and the Federal Reserve us?

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