Bond Outlook June 20th

Concrete evidence has now come forth to confirm much of what we were surmising last week, viz. that the reserves of surplus countries are being directed away from US T-Bonds and towards equities, direct or indirect. The evidence was presented this week by John Maulden quoting from Treasury International Capital: in April almost USD 100 billion was invested in Agency bonds, corporate bonds and equities, allegedly by private investors.