In a previous article of mine in this thread, I mentioned the activity in bonds by Carribean Banks (usually home for various hedge funds) In article http://www.safehaven.com/article-2764.htm there is an interesting table of the origin of money flows into US bonds. Apparently those "Carribean Banks" were by far the largest buyer (+$23bn) of US bonds during January 2004, which coincided with the huge rally / short squeeze in bonds and allowed the dealers to offload their longs. Despite e.g. Japan lightening up their positions by $11bn, China/UK staying put etc Any ideas/theories who might be behind the "Carribean Funds"? The author of the abovementioned article suggests it's actually a covert operation by the US gov, buying its own bonds (not openly via P/T OMOs, but indirectly via those "Carribean funds").