`First Prime Group Tokyo` Foreign Investors May Sell Treasuries
Released on: September 26, 2008, 9:35 am
Press Release Author: Peter Brice
Industry: Financial
Press Release Summary: “First Prime Group”: A group of the largest holders of US Treasuries may sell as dollar sinks.
Press Release Body: News emerged today from sources close to “First Prime Group” that large holders of US Treasury debt may sell tranches of the bonds in favor of higher-yielding investments.
“First Prime Group” are thought to be advising clients to eschew US government debt – often seen as a safe-haven – in favor of investment in commodities or shares in companies producing them.
An individual with knowledge of “First Prime Group” strategy reportedly said that a yield of 3.4% against US inflation currently above 5% was in effect a negative return on investment for holders and could eventually see investors asking for higher interest rates regardless of the precarious condition of the US economy.
Any worsening of the inflation figures and the dollar’s performance in global currency markets could culminate in a broad sell-off said the “First Prime Group” source.
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