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Selling heap load US bonds

During yesterday's MacroTwits discussion on Stocktwits, Gregor Macdonald wondered aloud about the upcoming flood of US Treasury bond issuance, set for $235 billion in govt. bills and notes this week.

More on that from MarketWatch:

"
Treasury prices declined Monday, pushing yields up for the third session in four, after the government received record-high interest from investors for its first longer-term debt sale of the week.

Bonds remained in the red as traders eyed the rest of a record $235 billion in government bills and notes up for sale this week...

...The government will sell $42 billion in two-year notes on Tuesday, followed by $39 billion in five-year notes on Wednesday and $28 billion in seven-year notes on Thursday. The amount of 2-year, 5-year and 7-year notes will all be the largest-ever auctions on record.

Tuesday will also bring $27 billion in 52-week bills and $30 billion in 4-week bills ."

You might have also noticed a related clutch of articles on the Seeking Alpha home page today under the heading, "The Great Bond Sale". We'll highlight some of those stories in our related posts section below.

In the meantime, here's one more related piece from Bloomberg that we tweeted last night. China has come to Washington for talks with the US and it seems they are kind of curious about the strength of the US dollar and "the stability of US policy", especially since they are such large holders of our national debt.

Of course, the Chinese may have worries of their own to face as Edward Chancellor at GMO warns that China's economy seems "dangerously unbalanced and very likely to come unhinged in the next few quarters", but that's another story altogether.

Keep an eye on news of the China-US talks for more economic developments, and see our related posts section below for more on the US govt. bond sales.

Related articles and posts:

1. Govt. to sell $205 billion in bonds this week - Seeking Alpha.

2. Bond expert: Monday wrap - Seeking Alpha.

3. Bonds: dropping real yields indicate inflation - Seeking Alpha.

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