Asian investors bought 12 percent of the latest two-year debt issue, as European investors purchased 8 percent, down from 39 percent and 17 percent in the July sale, according to company data. Central banks bought 27 percent, down from 57 percent.
It may be a knee jerk reaction by foreigners since practically the GSE debt is now as good as treasuries (almost) they should be all over this. Maybe they believe the dollar will go to hell. After all the FED is tapped and the Treasury is next on the line.
And as a corollary, treasuries jump 18bips intra day. The sub-prime virus is at the door step of Treasuries. Sub-prime nation?
Yikes, I am starting to hyper ventilate here.