Traders are now saying that the Euro makes up over 50% of Russia's currency reserves, and the dollar now makes up less than 40%. That seems logical.
We know that as of January 1, the Euro made uo 47.5%, and the dollar was 41.5%.
On October 1 of last year, the dollar had made up 49% of Russia's reserves, and the euro was at 40%.
So in six months, the positions have reversed.
Last year, Russia bought $80 billion worth of Treasury debt.
And since PIMCO is stuffed with mortgages, that will soon have yields like Treasuries, it looks like Gentle Ben needs to find another buyer, or get a bit more aggressive with his QE, if he wants to continue his con!
Maybe Bernanke can call Blackrock!
And maybe PIMCO's Gross, can change his position on loan modifications, before Mr. Market gives Bill a big case of performance anxiety, and hits some more bids!
After all, Bill's been telling clients "shake hands with the Government is and has been our motto."
He might now need a rubber glove!