EUR

ah oui putko c'est soukhon.

Cat, seen the recent data for Chinese holdings of US treas.? They are continuing selling US treas. Any comments from you? I told you: China is unwinding their long US treas. position.

There is little that can be said about the December TIC data, as all the same (troubling) trends continue. Total Chinese holdings declined by $4 billion, as a result of $9.4 billion in Short-Term debt declines, offset by Long-Term purchases. China continues to dump agency securities like there is no tomorrow, and December is the 6th month in a row in which China has seen its agency holdings decline, but that should come as no surprise to anyone: after all they made it somewhat clear they are on the verge of liquidating the bulk of their GSE holdings recently.

But wait? You say Fed is acting like a firewall for foreign shocks. Yes, correct. In a couple of years the Fed will be the sole holder of US debt :)

said, Marc Lavoine & Souad Massi - Paris:
http://www.youtube.com/watch?v=KTms12ZKGaA

encore latecoere.
trouve autrechose

sub and ignore, thanks for the insights re eur/chf. Will keep them in mind.
rationale for this trade is: 1) eur/chf is sitting (still) above recent b/o level which followed long consolidation. 2) expect a little bit more risk-taking in the markets before the long due correction, thus eur/chf will be supported for some time more.
As always, we shall look to see.
GL