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Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

di.se

91–100 of 192 posts

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#91
post #34

US 10- and 30-year bonds are trading at their highest yields (lowest prices) since, uh, August/September 2025. Or in historical context, rates that were more common before 2007 and the ZIRP period.

That all has way more to do with Japan’s bond issues and the carry trade unwinding. 8 billion will have caused a tick, but that’s nothing.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#92

An equally valid headline is "Investors purchased $8B of US Treasury Bonds". Never really got the point of people announcing US Treasury sales like its a big thing. Someone else not thinking with their emotions can, and will buy them. Its like announcing publicly you are selling your Honda. Its your Honda bro, sell it.

The fund sold off most of their US bonds, some journalist heard about it and considered it newsworthy and published an article. DI.se’s readers are largely also benefactors/owners of Alecta’s, so that seems fair.

Someone else considered it worthy of sharing here and enough people here found it interesting enough to get it to the front page. I don’t quite understand why, but it seems like it’s striking some sort of chord.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#93
post #68
post #59

Earlier quoted context omitted.

Nothing is risk-free. But Canada is certainly more politically stable than the US.

What makes you say "certainly," especially in the hypothetical scenario where the US is unstable? Canada has a relatively much shorter history as an independent nation. Canada heavily benefits from its southern neighbor, and has a host of domestic economic issues (low wages, high housing prices; whatever the farmers are on about) that could cause instability as well. I think Canada is reasonably stable, I just quibbl…

Canada will not invade allies and will adhere to the rule of law. Their forward looking economics are more favorable as they strengthen ties with China and Europe. By decoupling from the US, their economic risk declines, and their sovereign debt risk is downstream of that.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#94
post #74
post #69

Earlier quoted context omitted.

This president has publicly mulled not paying its debts. It's time to stop magical, wishful thinking about how you want the world to be, and deal with the world as it is.

The president can mull whatever he wants; he doesn't have the authority to not pay.

What a ridiculous statement given everything we've seen in the last year. The president doesn't have the authority to withhold funding to the states, or to deploy the national guard (absent an emergency), or to use the Justice Department as his personal law firm, and yet... All he needs to do is have the appropriate person fail to do their job and nothing gets paid.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#95

Earlier quoted context omitted.

The fed would almost certainly intervene aggressively resuming large scale QE to buy up treasuries and stabilize yields.

What if the fed ceases to exist soon?

It won't cease to exist, it will just answer to the orangefuhrer like most other US government agencies already do.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#96
post #34

US 10- and 30-year bonds are trading at their highest yields (lowest prices) since, uh, August/September 2025. Or in historical context, rates that were more common before 2007 and the ZIRP period.

Which explains why the DOJ is going after the FED for not lowerign interest rates. They assume ZIRP will solve their problems, but that just kicks the can down the road, and it won't go far this time. Even Japan, which was our model for yield curve control has abandoned that theory.

Bunch of dumb people running the room and no experts.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#97
post #58

Earlier quoted context omitted.

Almost every 1st world country has a more predictable and honest leader right now

You've answered a different question than the one I asked. I think the US will continue to pay its debts, under this president and the one who replaces him in three years.

The US will pay its debts in USD and the German government will pay its debts in Euros. If you think the euros to dollar exchange rate will be better in the future, it can easily dwarf the difference in interest rate between the bonds.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#98
post #9

What are some realistic alternatives to US markets here? Selling is one thing, the question is what to buy instead? I mean, everyone starting to buy european instead would be great for stock prices, but it wouldn't make the underlying assets more valuable, right?

Canada?

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#99
post #97
post #58

Earlier quoted context omitted.

You've answered a different question than the one I asked. I think the US will continue to pay its debts, under this president and the one who replaces him in three years.

The US will pay its debts in USD and the German government will pay its debts in Euros. If you think the euros to dollar exchange rate will be better in the future, it can easily dwarf the difference in interest rate between the bonds.

How does that practically work out in selecting bond investments though? Betting on receiving euro coupon payments would look like buying BNDX over BND. But in the last year, while the Euro appreciated ~12% over the Dollar, $BND is up ~3% while BNDX is down ~1%.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#100

Earlier quoted context omitted.

"There have been spontaneous demonstrations amongst the workers voicing their joy and gratitude at our happy new way of life." - Orwell, more or less.

Faith Collapsing! https://www.youtube.com/watch?v=68DJCaqEpDc

Flawless response elevated to performance art by the username.
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