[JanisErdmanis]

> However dumping that much debt all at once would require the sellers to heavily discount a large portion of their bonds, earning them increasingly fewer, and paying in (depreciating) dollars.

I think all investors are now looking at this with this foresight. Being the first to dump seems to be the winning game here.

[stackghost]

>I think all investors are now looking at this with this foresight. Being the first to dump seems to be the winning game here.

When you're talking about hundreds of billions of dollars worth of bonds you simply can't move that much in one go. That's an elephant-in-the-bathtub situation where your moves disturb the market because of their size.

Even the first entity to dump would still have to discount a lot of their bonds. Nobody on the bond market is going to make a $200B snap purchase.

[jacquesm]

That's exactly what will drive the sell-off. Speed is key. Being the last one to sell is going to leave you with the worst of it.