August 06, 2009
TIPS, Gold for China Reserve Mix
The USA Treasury will sell $75 billion in bonds next week and has promised to include more TIPS or Treasury Inflation Protected Securities. Speculation is that Beijing requested (demanded?) more TIPS in the mix of sales although Treasury refuses to comment when pressed as to whether China was behind the new emphasis on longer term TIPS including the possibility of 30 year bonds.
Meanwhile gold output rose over 13% in China for the 1st Half of 2009 to 146.5 tons. It is widely believed that Beijing buys most if not all domestic gold production. That leaves open speculation that Chinese gold reserves have grown by over 146 tons already this year....
Labels: financial news, gold, treasury
# posted by Sinomania! : 8/06/2009 10:59:00 AM
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