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China Net Seller Of US Treasurys For Fourth Consecutive Month

Tyler Durden's picture




 

While we will present a comprehensive update of the just released TIC data shortly, the one chart worth noting is the sequentual change in holdings by foreign countries, and particularly one of them. Importantly, of the 4 largest holders of US debt, China, Japan, the UK and Oil Exporters, the latter 3 all saw an increase in their Treasury holdings, China continues selling Treasurys, with a 4th consecutive decline in its total holdings. That said, since TIC data is notoriously flawed and always incorrect, with at least half UK purchases being attributed to China post annual revisions (nobody knows who is responsible for the other half) it could well turn out that China was the only country actually buying US paper. We won't know for sure for at least a year from now following the next full year revision. And by then it likely won't matter.

Source: TIC

 

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Fri, 04/15/2011 - 09:24 | 1172032 slow_roast
slow_roast's picture

Selling USTs to buy EURs...selling garbage to buy trash.  Suave.

Fri, 04/15/2011 - 09:54 | 1172141 oh_bama
oh_bama's picture

China is TOO Stupid!!

  • INFLATION IS ONLY 0.2%!!
  • INFLATION EXPECTATION IS WAY TOO LOW!!
  • UST is much safer than GREECE DEBTS AND IRELAND DEBTS!!

 

Fri, 04/15/2011 - 10:20 | 1172257 mark mchugh
mark mchugh's picture

Sure, and you're much safer going over Niagara Falls in a kayak then you are on a raft.

Fri, 04/15/2011 - 12:28 | 1172859 cpaspareil
cpaspareil's picture

+1

Fri, 04/15/2011 - 13:32 | 1173136 MrPook
MrPook's picture

+2

Fri, 04/15/2011 - 09:25 | 1172033 Cash_is_Trash
Cash_is_Trash's picture

Smart move. Bill Gross in action.

Fri, 04/15/2011 - 10:24 | 1172276 Thomas
Thomas's picture

I'm sure Japan will pick up the slack.

Fri, 04/15/2011 - 09:24 | 1172035 swanpoint
swanpoint's picture

Sell Treasurys, Buy Silver.

Fri, 04/15/2011 - 09:24 | 1172038 John Law Lives
John Law Lives's picture

Better not order egg foo young for lunch today, Tyler...

"China Says It Will Punish Those Behind Data Leaks"

http://finance.yahoo.com/news/China-Says-It-Will-Punish-bloomberg-242888...

Fri, 04/15/2011 - 09:27 | 1172039 RobotTrader
RobotTrader's picture

Wonder who is buying them today?

NY Fed?  Goldman?  Bill Gross?

Fri, 04/15/2011 - 09:26 | 1172042 tmosley
tmosley's picture

Certainly not your mother.  You really need to start chipping in a little more around the house, boy.

Fri, 04/15/2011 - 09:32 | 1172060 Careless Whisper
Careless Whisper's picture

what's your stop loss on that JPM trade robo?

 

Fri, 04/15/2011 - 09:35 | 1172061 HamyWanger
HamyWanger's picture

I've made a killing on Detroit real estate last week, selling for $34,000 a 1,900 sq. feet condo that I bought for $2,700 six months ago. 

Most libertarian doomers were saying the city was doomed: they were obviously wrong, and Detroit has become today one of the most dynamic economic zones in America.

Our consumer discretionary stores, besides, are still at record turnovers, and we recently received a $135k subsidy from the city Economic Council. 

People like you should really listen to smart traders like Robot or Leo, insead of losing money.

Fri, 04/15/2011 - 09:47 | 1172110 Chuck Norris
Chuck Norris's picture

So who did you have to blow to get that subsidy?  I'm not too happy knowing my tax dollars are subsidizing your crack whores buying binges.

Fri, 04/15/2011 - 09:55 | 1172143 writingsonthewall
writingsonthewall's picture

Got any proof of this profit - or is it like the time I 'walked on the moon' when I was part of the USSR Cosmonaught program?

 

"Detroit has become today one of the most dynamic economic zones in America."

 

yep - I can see that.

http://www.youtube.com/watch?v=SWEdjiEJg0U

 

All these 'never clever' profit makers' are about as real as the profits made by the banks - at least they're making paper money - you're not even making that - just toilet paper dreams my friend.

 

When the crash comes you can buy us all a drink......as long as you're not on skid row with the other 'never clever profit makers' - at which point you'll be crying about how unfair it all is....

 

Like I always say, Capitalism relies on 1 rule - "there's one born every minute"

Fri, 04/15/2011 - 10:07 | 1172197 pazmaker
pazmaker's picture

Alright Hamy...Harry is gone now...you've succeeded

Fri, 04/15/2011 - 10:08 | 1172203 pazmaker
pazmaker's picture

duplicate

Fri, 04/15/2011 - 10:14 | 1172238 johny2
johny2's picture

It shows how healthy finance industry (and their sponsors, suvereigns ) must be actually, when the house prices in Detroit are still lower than in Tripoli. 

Fri, 04/15/2011 - 09:36 | 1172069 RobotTrader
RobotTrader's picture

Sorry, tmosely, my mother passed a long time ago from drug addiction.  I've been in and  out of orphanages and military schools, now I'm holed up in a tiny, one bedroom 600 SF arpatment built in the 1920's, all my neighbors are strung out hookers and failed actresses.  I pretty much take care of myself by chugging Monster Energy every day and pecking out stuff on my tiny, beat up, notebook computer.

I applied for a full time job at Starbucks but was turned down, now I'm applying as a checker at the local grocery store.  If that doesn't work, I'll just head down to the studios and grovel for an "extra" job on a set somewhere paying $8/hr.

 

Fri, 04/15/2011 - 09:47 | 1172088 d00daa
d00daa's picture

Robot gets called out by tmosely for the 100th time, and only now feels like responding?  Something under your skin there, Robot?

Yep.  The top is most definitely in.

Fri, 04/15/2011 - 09:53 | 1172132 Infinite QE
Infinite QE's picture

Robot's guru's 900 number must be jammed solid this morning as he had his lemming followers long the dollah and short silver. Fecked again!

Fri, 04/15/2011 - 09:45 | 1172100 the not so migh...
the not so mighty maximiza's picture

" all my neighbors are strung out hookers and failed actresses. "

 

thats awsome

Fri, 04/15/2011 - 09:51 | 1172126 Thorny Xi
Thorny Xi's picture

So much truth in sarcasm, you can tell by the detail ... 

Trade the short term, hell, the long term is really bleak for your generation.  May as well jerk off now - and into a mink covered glove.

Fri, 04/15/2011 - 10:02 | 1172185 tmosley
tmosley's picture

Excellent, the first step to recovery is admitting you have a problem.  Now, go spend your time fixing your shitty life rather than telling us all how much more money you are making than the KWN crew, or General Jim, or whoever, when you are actually getting your ass kicked by them.  

Buy yourself some silver.  Use the proceeds to buy a nice place on the beach next year.

Fri, 04/15/2011 - 10:14 | 1172226 pazmaker
pazmaker's picture

I know we all look at robo as a troll. He maybe full of shit....but without him who would everyone junk?   I also notice that no matter how many names he gets called or cussed out...he never is rude, disrespectful or uses foul language....just an observation.

Fri, 04/15/2011 - 10:28 | 1172286 Bahamas
Bahamas's picture

I kind of miss willythebastard..(was that his name)?..and tmosley insulting him...that was fun..I wander what happened to him, he hasn't posted in a while

Fri, 04/15/2011 - 09:39 | 1172063 d00daa
d00daa's picture

Wow, you're just a shit-talking little bitch today, aren't you...

"Economic boom lead by the US consumer."  I will never forget those words.  No one else here will, either.

Are you "fully invested" yet for the break out Robot?  How about you list us some positions there, eh tough guy?

When foaming-at-the-mouth, Ben-wa ball-licking bulltards like you start crowing about an "economic boom" while global capitalism fails all around you, the top is most certainly in.  I hope you lose your ass, you worthless fuck.

Fri, 04/15/2011 - 09:27 | 1172040 SheepDog-One
SheepDog-One's picture

How is Japan buying any treasuries? 

Fri, 04/15/2011 - 09:27 | 1172047 Hulk
Hulk's picture

Make believe money...

Fri, 04/15/2011 - 10:10 | 1172207 DougM
DougM's picture

TIC data is 2 months lagging. 

Fri, 04/15/2011 - 09:26 | 1172043 Jason T
Jason T's picture

"we don't want your Ben confetti" 

Fri, 04/15/2011 - 09:32 | 1172052 snowball777
snowball777's picture

How ya like my currency peg(leg) now, round-eye?

Fri, 04/15/2011 - 09:38 | 1172068 zaknick
zaknick's picture

Can't wait for QE2 to end! The evil empire collapses sooner or later .

Fri, 04/15/2011 - 09:40 | 1172073 Global Hunter
Global Hunter's picture

Its comforting to know that WW3 is being fought by central bankers rather than generals and soldiers.  Conscription affects everybody who has their assets in savings. I should point out that it won't be comforting any longer when people realize what is going on.

Fri, 04/15/2011 - 09:44 | 1172107 gulf breeze
gulf breeze's picture

Robo is gambler who lost his money, family and dignity.  He never post future movements just backward looking charts.  Please look at his posts about sports booking to see his addiction.

Fri, 04/15/2011 - 09:49 | 1172129 All is chosen
All is chosen's picture

As a Brit (who refuses to live there) I don't recall voting to continue buying US Trasheries to the death.

Fri, 04/15/2011 - 09:54 | 1172138 colonial
colonial's picture

Tyler:
I'd be interested to know what China is buying...they have to do something with all that money.  After all there are only so many vacant cities that any one country can create.

Fri, 04/15/2011 - 10:27 | 1172292 wisefool
wisefool's picture

I would assume they are building up a middle class that will develop an entitlement mentality such that they can "democratically/collectively" purpose the rest of the money to colonize africa for natural resources. Including shiny metals.

Fri, 04/15/2011 - 10:31 | 1172298 SilverBaron
SilverBaron's picture

They're buying materials to make weapons + oil, gold, silver, oh yea and Africa.

Fri, 04/15/2011 - 10:41 | 1172358 Portugal
Portugal's picture

They are buying EUR assets because real economics don't vannish in the air like financial instruments. And Europe still has the best assets to be bought... Even if you personally believe that a Corvette is better than a Ferrari.

Fri, 04/15/2011 - 10:26 | 1172280 Gimp
Gimp's picture

Chinese ain't stupid. They don't want to look into the abyss and realize they are holding only their wang in 2012.

Fri, 04/15/2011 - 10:40 | 1172337 bankonzhongguo
bankonzhongguo's picture

I won't have any respect for China until they own zero UST.

Fri, 04/15/2011 - 10:44 | 1172378 doubleplusgood
doubleplusgood's picture

I find all this talk of force majeure doubleplusgood. it looks like meat, tastes like meat, but it's not. Doubleplusgood I say.

 

Fri, 04/15/2011 - 10:53 | 1172421 Greyzone
Greyzone's picture

Here is what bugs me in the great inflation/deflation debate.

1. If the banks really control everything, why would they opt for inflation, which kills them (the creditor class)?

2. On the other hand, if they could force deflation, why haven't they done so?

I think asking those two questions leads to at least two possible scenarios.

1. Nobody controls this runaway train as it's hurtling down the tracks.

or

2. The banks are still in control and prefer a little inflation to deflation.

 

The problem with the inflation argument is that there is a massive amount of credit in the system that is worth, at best, pennies on the dollar, and may even be worthless. The amount of bad debt in the system is still at least an order of magnitude less than what's been printed so far by central banks, yet at the same time those central banks have clearly telegraphed their willingness to print.

I think anyone who claims to be "absolutely" sure that we're going to have inflation or deflation is about as whacko as Jim Jones and dealing purely from a faith based position. And without definitive answers to the above problems that I listed, I don't think we can make any "absolutely" certain calls.

 

As for Gross, I think that he's jawboning Treasuries so he can re-enter the Treasury market. Think about his position. Interest rates are near zero so holding cash for a while doesn't hurt him much at all. Yet if he can help jawbone Treasuries down (and rates up), and he then re-enters the Treasury market with all that cash he's sitting on, he makes a nice tidy profit. The only way Gross can get hurt is if inflationary pressures rise faster than he can respond to those pressures, and that doesn't look even remotely likely. All the hyperinflations of history took time to get rolling and were clearly identifiable before they did.

And as for the Chinese, I think their motives are far less about inflation or deflation, and more about the grand strategic chess game about global power. The Chinese do what they do to extend and exert power and they are patient players.

Fri, 04/15/2011 - 11:13 | 1172492 ivana
ivana's picture

Control is the only thing big banksters have but it is running thin.
Imagine XYZ bank of medium size, its assets and liabilities ... and apply deflation & inflation scenarios - answer will come instantly.

Fri, 04/15/2011 - 11:17 | 1172514 mark mchugh
mark mchugh's picture

Deflation, specifically on things the banks own, is deadly to them.

The banks own the houses, not the home-owers, When the ower defaults, the bank takes the loss.  Remember fractional reserve banking allows them to lend 10 times as much money as they hold in deposits, so a 10% decline in house prices wipes them out.

They need inflation in housing to keep the lights on, and printing is their only option.

The problem is you can print all the money you want, but there's only so much you can do to make it flow where you want it to.  You can manipulate other asset prices too, but you can't print food, oil, gold, silver, cotton and everything else that people obtain on a cash and carry basis.  In other words inflation goes first to what you need, once producers are wise to the game.

A deflationary crash that sends Jamie Dimon to the poor house is obviously off the table.  So they're gonna print until the system collapses.

Fri, 04/15/2011 - 11:07 | 1172482 ivana
ivana's picture

looks to me chinese are really smart. attacking banksters on weak points by 1000 small cuts.

Banksters will have to sacrifice something big. Few sovereigns or 20-50 mil taxpayers

Fri, 04/15/2011 - 11:37 | 1172600 cabernet
cabernet's picture

Interesting chart. It looks like the big foreign buyers have said "uncle" and stopped their purchases. Makes me wonder who is buying the 30% of bonds sold by the treasury that the FED does not buy. 30% is close to half a trillion bucks.

http://www.TheAngryGrapes.Com

Fri, 04/15/2011 - 11:46 | 1172642 twoshedds
twoshedds's picture

Echoing Bill Gross, who will be there to buy U.S. Treasuries when QE2 ends?

If interest rates spike, then the Fed will have to buy, but more buying by the Fed will mean a big spike in inflation fears.

"That's some catch, that catch-22,"
"It's the best there is,"

 

Fri, 04/15/2011 - 19:11 | 1174648 TwoShortPlanks
TwoShortPlanks's picture

Noooooo!!!! In his Budget Speech Obama said he wants to keep the Chinese as buyers, so he was inferring that they still ARE buyers.

I believe Obama, don't you?!  ***strokes Silver Bar in hand***

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