“The spigot of global reserve stimulus is slowing to a trickle”

Here is an interesting article from Ambrose Evans-Pritchard over at the UK Telegraph.

(Oh, and I should include a warning. Some people like reading Ambrose Evans-Pritchard. Some people don’t like reading Ambrose Evans-Pritchard. If you are one of the people that don’t like reading Ambrose Evans-Pritchard, please note that this article is by Ambrose Evans-Pritchard. For goodness sake, if you don’t like Ambrose Evans-Pritchard don’t click on the link. Don’t say you haven’t been warned. Complaints to 1800tellsomeonewhocares.)

He says:

• The spigot of global reserve stimulus is slowing to a trickle
• The world’s central banks have cut their purchases of foreign bonds by two-thirds since late last year & China has cut by three-quarters
• They have fed demand for US Treasuries, Bunds and Gilts, as well as French, Dutch, Japanese, Canadian and Australian bonds and parastatal debt, displacing the better part of $12 trillion into everything else in a universal search for yield. Any reversal would threaten to squeeze money back out again.

Very interesting stuff: Global QE ends as China opens second front in bond tapering