This page has been archived and commenting is disabled.
Foreign Holdings Of US Treasuries Surge Driven By Record "UK" Purchases
August saw the second largest purchase of US Treasurys by foreigners in history, which at $117.1 billion was just slightly smaller to November 2009's $117.9 billion. However, unlike then, in August there was an inflow into every single category of US security, with inflows of $4.6 billion in Agencies, $10 billion in Corporate Bonds, and $4.8 billion in Corporate Stocks. The generic data is there: Chinese and Japanese holdings both increased, the former by $21.7 billion to $868.4, the latter by $15.6 billion to $836.6 billion. Which means that the Fed has once again relinquished second place in total UST holdings to Japan...but only so for a few days. At about $825 billion, and with 8 POMO coming up in the next 3 weeks, Japan will be left in the dust shortly. Unfortunately, the historic event of overtaking China as the world's largest holder of Treasuries by the Fed will have to be delayed until late November. Yet there was something very troubling about August's TIC data: the primary driver for the explosion in total foreign holdings from $4.066 trillion to $4.213 trillion, an increase of $147 billion, was the literal explosion in "UK" holdings of $74 billion from $374BN to $448BN. (we put it in parentheses because the purchasing is certainly not being done by the UK government which itself is planning on starting it next round of QE, or monetizing its own debt, imminently). What the true source of this purchasing power and interest is, only the Federal Reserve truly knows.
Some other curious tidbits: Luxembourg holdings of USTs dropped by $19.8 billion in the month, however only to see the increase in Belgium holdings by $17.7 billion, a doubling of its previous total of $16.6 billion to $34.4 billion. And Germany, at $58.7 billion, now owns less US Treasurys than Thailand ($60.9 billion).
Total monthly change:
Looking at the big boys, here are the flows in Japanese Treasury holdings:
And Chinese:
Total Chinese holdings: an increase of $22 billion in August.
Yet here is what should be making news: UK (aka Direct Bidder) holdings. These are self-explanatory. As a reminder, a failed auction means game over.
Total UK flows:
And total holdings.
»
- 6968 reads
- Printer-friendly version
- Send to friend
- advertisements -
Okay NOW it's a bubble.
Is this what is meant by "greater fool theory"?
This is what is meant by :"The US and UK have a special relationship"
Fools love
"Lies, damned lies, and statistics." Disraeli
"The world is governed by very different personages from what is imagined by those who are not behind the scenes" - Benjamin Disraeli
Nothing has changed since Disraeli's day.
It's a manifestation of the global currency war. We'll see even larger purchase numbers for September and October.
Yet the dollar keeps falling.
this report was a sign of weakness, not strength.
Hot potato with Treasuries going on there, especially in the EU.
Lol. I bet these purchases have been made by the Bank of England, directly or indirectly.
The Ponzi makes all its sense.
you buy my garbage, i'll buy yours.
I think you are straight to the point, as to my knowledge
neither the Bank of England, nor the ECB, are
reuired to disclose their 'purchases'
UK = Arab
agreed.
+1
Yep, gotta park all the cash they got off you selling oil somewhere....................
The UK has the world's second highest concentration of hedge fund money. You can bet a lot of them have been frontrunning the Fed and buying HFTs. For example we all know Hugh Hendry has been buying USTs aggressively for a while and his is a relatively small fund.
The UK has the world's second highest concentration of hedge fund money. You can bet a lot of them have been frontrunning the Fed and buying HFTs. For example we all know Hugh Hendry has been buying USTs aggressively for a while and his is a relatively small fund.
Question
Given that "foreclosure-gate" may put MBS at risk, is there a way to determine whether China is swapping out of its over $400 billion in Agencies for straight Treasuries?
Its the CIA BUYING FOR NATIONAL SECURITY REASONS....thru M3 in UK
God save the Queen! (or the sheiks)
Is this the MPLA?
Or is this the UDA?
Or is this the IRA?
I thought it was the UK;
Or just another country.
Another council tenancy.
http://www.youtube.com/watch?v=0TZ_9-rbslo
+1 , great Pistols reference!
London 2010 - http://www.youtube.com/watch?v=Pr2HTUlUrDo&feature=channel
London 2012 - http://www.youtube.com/watch?v=RZ2oXzrnti4&ob=av2e
In summation - http://www.youtube.com/watch?v=HjONGEeOSyQ&feature=channel
The very special Specials.
brits and american banksters know each others dirty little secrets
gold is on the move now
10 AM Timmay Dean time (he is long beans)
If Gordon Brown had a hand in this, the top is in.
...the purchasing is certainly not being done by the UK government which itself is planning on starting it next round of QE, or monetizing its own debt, imminently...
Curious - why that conclusion? If we don't know who's doing the purchases - how do we know it's not the government? (I assume "government" means BoE right?)
Do we really think there's that much private money sitting on the sidelines in the UK, and if so what would have possessed them to all of the sudden decide that near-zero-yield UST's are a good investment?
(self delete, wrong spot)
Oh yeah, this is TOTALLY legit... God damn, what the F is it going to take to break these bastards? Sick of this, getting so tired of how people just keep swallowing down what they are fed.
"" are quotes, () are parentheses.
/grammar Nazi
Thanks for the info. Not much new, though. Just same old corruption at the highest levels...
I knew that as well, after I had Googled it.
Another chart with 10-year historical reference:
http://img403.imageshack.us/img403/580/graphustforeignholdings.gif
Caribbean Banks.... Who knew the islands were so prosperous!
Since this is not the case, and this is just a "clearing house", why is it not obvious that the UK activity is more of the same with a more palatable cachet?
The Fed loans/gives the BoE all the money they need to buy stocks, loan to banks and buy Treasuries...its all a fraud...It will show up on the fed balance sheet as a swap with the BoE or a trade of those Euros purchased last year...the great international shell game Watch the Pea....
Alan Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" Bernanke: "I Don't Know."
http://www.youtube.com/watch?v=n0NYBTkE1yQ&feature=player_embedded
Bank of England tells of secret £62bn loan to save RBS and HBOS
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6646923/Bank-of-England-tells-of-secret-62bn-loan-to-save-RBS-and-HBOS.html
Bank of England advisers not told about secret £62bn loan to HBOS
http://www.guardian.co.uk/business/2009/dec/03/bank-england-secret-loan-hbos
A few thousand billion here and a few thousand billion there..
Fed Refuses to Disclose Recipients of $2 Trillion
http://www.bloomberg.com/apps/news?pid=20601109&sid=apx7XNLnZZlc
Fed Fights Request To Disclose Who Got $2 Trillion In Bailouts
http://www.istockanalyst.com/article/viewarticle/articleid/3775032
FED GAVE Banks Access to 23.7 TRILLION DOLLARS NOT $700 Billion! http://www.youtube.com/watch?v=lDJc0PZV-Bk&feature=player_embedded
Greenspan Admits The Federal Reserve Is Above The Law & Answers To No One
He says it at 7:40 Google
http://www.youtube.com/watch?v=ol3mEe8TH7w&feature=player_embedded
Bankers Loot the Country - Federal Reserve refuses to tell the US Senate to Whom they have given $2.2 Trillion
http://www.youtube.com/watch?v=2EQDrVKYWmc
The only important number in Treasury's monthly major foreign holders report is the grand total for all foreign holders. It's up $147b, which is a lot for one month, and likely reflects purchases that were made earlier by proxy and only recently recognized as foreign.
The Fed's weekly reports on foreign official holdings of Treasuries in its custody are also valuable.
Treasury's annual survey of foreign official holdings is also valuable.
Trasury's monthly reports of total foreign official holdings and individual country holdings are of no value whatsoever. You can throw away those pretty charts and the excel files they are based on, it's all worthless junk non-data worthy of exactly nobody's attention.
Is the US giving out free treauries to the UK and China to make up for losses in the currency? Seems to me like UK's increase of 16 percent in treasuries is about on par with the dollars 14% drop. Is this a gift from the fed so the UK can buy back some of its long ago sold gold? Are the UK and China being getting covert inflation protection? Are all soverigns getting the same protection. WTF. Is this a co-ordinated effort to build foreign dollar reserves before a ten for one debasement? And we are supposed to beleive treasuries are a wonderful uber safe investment.
I am totally bewildered at how fiat money and all its derivatives work. I will stick to 1+1 = 2 and gold is the only thing left that is real.
I suppose we have to buy some of theirr crap to keep things looking good? Nobody seriously wants our stuff after the rates are low and the dollar is going to take a dirt nap.
billion, trillion, quadrillion ... the numbers have become so large that for proper interpretation they require a sort-of discounting mechanism i think, to wit
$74,000,000,000 in absorption by the UK equates to roughly $1,205 for every man, woman, and child in the country.
I suspect Uk buying is by the big dealers for other foreign countries. Typically this is china or the middle east buying. Since China got its wrists slapped for buying JGB's, maybe this is a switch back to orignal policy.
Looking at the UK specific TIC data, then a lot of those treasuries flow right back into the US. We need to remember this is August data which largely precedes QE2, the dollar decline, currency wars etc which suggests to me this was middle east buying.
Petrodollars. Saudis. "UK".
Narco dollars - Singapore - UK...
Hihihihi: the economy expressed by my daughter playing Monopoly is far truer than this one... And they money she uses is of much more value!
edit by author because of multiple posting
UK = proxy for FED.
UK purchases = Fed buying Tbills through a bank in Grand Cayman.
Middle East oil money buys US Treasuries through UK. Or so the Brits have been saying.
www.taobao-trade.com have all kinds of pandora jewelry and available for your choice.Wearing our Pandora jewelry, catching others eyes, and enjoying your beautiful <a href="http://www.taobao-trade.com">cheap designer handbags</a></div> ! <a href="http://www.taobao-trade.com">wholesale designer handbags</a></div> For the Pandora Bracelets,we have many styles and colors.Treat yourself to a little bling. Small enough to be worn often and sweet enough to keep you smiling.<a href="http://www.taobao-trade.com">cheap caps</a></div> Enjoy your stay and do browse around, if you have any questions, do not hesitate to contact us.