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TIC Data Summary: Russian Treasury Holdings Tumble; China, Japan Add

Tyler Durden's picture




 

The Treasury released its May Treasury International Capital data today, which confirms recent trends: while China, both domestically and through the UK, and Japan both added to their gross exposure of US debt in May, Russia's holdings continued to tumble in line with warnings out of Moscow discussed previously and with the continued Kremlin rotation out of Treasurys and into gold. And while Putin has obviously had enough with shenanigans in the US, the same can not be said for his posturing colleagues in China (and Japan) who at least two months ago, brought their holdings of US to 2011 (and record) highs of $1159.8MM and $912.4MM respectively. So much for China dumping bonds. Another source of Treasury demand: petrodollars, which saw their UST holdings in May hit an all time high of $229.8 billion. Overall, gross purchases of Long-Term US securities by official and private foreign buyers declined modestly to $44.6 billion from $44.8 billion. Netting out foreign securities purchased of $21 billion, yields net flows of $23.6 billion on expectations of $40 billion, or in other words May saw a modestly lower inflationary impact due to an influx in foreign capital in the US economy. Also when netting out US purchases of foreign securities as well as changes in bank dollar-denominated liabilities the net number was -$67.5 billion.

Foreign holdings of US bonds by top 4 holders.

But...just Russia, which instead ended up converting $10 billion of USTs into 22 tons of gold in May and generating a massively higher return. That wily old Putin...

Monthly breakdown by gross foreigner asset class purchase and disposition. Notable is that while foreigers sold the most in Agencies ($8.2 billion) since September 2010, they bought the most Corporate bonds ($5.6 billion) since August 2010.

Source: TIC

 

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Mon, 07/18/2011 - 09:42 | 1465998 hedgeless_horseman
hedgeless_horseman's picture

Another source of Treasury demand: petrodollars, which saw their UST holdings in May hit an all time high of $229.8 billion.

Amazing what a little bit of revolution can accomplish.  Uncle Sam runs a helluva protection racket over those KSA princes, but sometimes they need to be reminded who and what we are protecting them from (their own subjects).

 

PS:

Watch this video: http://www.ted.com/talks/sam_richards_a_radical_experiment_in_empathy.html

Mon, 07/18/2011 - 09:42 | 1466018 augie
augie's picture

cannot get enough of that site. Why watch T.V. anymore when you have access to information like that? 

Mon, 07/18/2011 - 09:55 | 1466048 malikai
malikai's picture

TED == NWO TV. It's TV for pseudo-intellectual TV rebels.

Mon, 07/18/2011 - 10:04 | 1466065 augie
augie's picture

easy, i resemble that remark...

Mon, 07/18/2011 - 10:07 | 1466087 malikai
malikai's picture

Don't get me wrong, the technology talks at TED are top notch. Just don't ever forget the geopolitical motivation behind TED.

Mon, 07/18/2011 - 10:18 | 1466127 augie
augie's picture

No doubt in my mind. Appreciate the heads up though. 

Mon, 07/18/2011 - 10:04 | 1466068 hedgeless_horseman
hedgeless_horseman's picture

So if one hears the lecture live, then one is a pseudo-intellectual conference room rebel?

I guess it beats being a consumer.

Mon, 07/18/2011 - 10:05 | 1466082 malikai
malikai's picture

If you're at a TED conference, it makes you a pseudo-intellectual consumer with too much money in your pocket. Unless you're part of the NWO racket, in which case you're a pseudo-intellectual circle-jerker. 

Mon, 07/18/2011 - 10:36 | 1466198 Conrad Murray
Conrad Murray's picture

You're totally harshin my hipster mellow, man.

Mon, 07/18/2011 - 10:06 | 1466086 Robot Traders Mom
Robot Traders Mom's picture

TEDTalks sponsors include Johnson & Johnson, Goldman Sachs, IBM, and Microsoft. It definitely is brought to us by the NWO. A bunch of intellectuals trying to lead people off a cliff. Why people think they can come into ZH and fool the masses is beyond me...Nice try TED trolls.

 

http://www.ted.com/pages/about

 

Mon, 07/18/2011 - 10:13 | 1466099 hedgeless_horseman
hedgeless_horseman's picture

Holy shit!  There is a Merril Lynch ad on ZeroHedge right now.  NWO!  NWO!  NWO!

Do either of you have anything to say about the CONTENT of this lecture by Sam Richards?  Have you even watched it?

 

 

 

Mon, 07/18/2011 - 10:14 | 1466110 malikai
malikai's picture

There is a Merril Lynch ad on ZeroHedge right now.  NWO!  NWO!  NWO!

You should watch more porn. You'll get better advertisements.

Empathy isn't my thing.

Mon, 07/18/2011 - 10:19 | 1466134 HedgetBedgadget
HedgetBedgadget's picture

They are busy burning their clothes, hacking Internet servers to delete their "Internet persona", selling their houses and moving to live on the mountains on canned beans, since now the NWO is all over Zero Hedge.

Well I guess more bytes for us at Zero Hedge.

Mon, 07/18/2011 - 10:25 | 1466156 Robot Traders Mom
Robot Traders Mom's picture

The ads on ZH are from an agency that bases it off the cookies on your computer and vary user to user. In fact, I wouldn't be surprised if you have an ad up from bigdongs.com right now.

 

Go be a government troll elsewhere.

Mon, 07/18/2011 - 12:11 | 1466664 stewie
stewie's picture

HH posted a link to a video promoting empathy for others, and you accuse him of being a government troll!  You are not making much sense dude.

Troll definition:  http://en.wikipedia.org/wiki/Troll_(Internet)

Futhermore, the video was against mass killing for the purposed of enriching the already mega-rich, and you think the a "government troll" would want you to think about that?  I would kindly suggest you think a bit more before letting your emotions write for you. 

 

 

Mon, 07/18/2011 - 12:03 | 1466633 stewie
stewie's picture

Sorry HH, but you won't find what you are looking for at ZH.  

 

Mon, 07/18/2011 - 09:43 | 1466001 SoNH80
SoNH80's picture

East Asians "gotta" keep their currencies "cheap" via trade dollar sterilization.  Russia trades with Europe mostly, so they can diversify out of Treasuries.

Mon, 07/18/2011 - 09:38 | 1466004 lolmao500
lolmao500's picture

http://www.news.com.au/breaking-news/world/missile-warheads-stolen-from-...

64 missile warheads stolen from train

http://www.presstv.ir/detail/189568.html

Hezbollah warns Israel over gas fields

http://www.presstv.ir/detail/189612.html

Iran to send fleet to Atlantic Ocean

http://www.google.com/hostednews/ap/article/ALeqM5jpokWYhgiYx_z_Wl2uaZbi...

Report: Iranians seize Kurdish bases in Iraq

Mon, 07/18/2011 - 09:48 | 1466026 PaperBugsBurn
PaperBugsBurn's picture

“Presence in the Mediterranean Sea, the Suez Canal, south of the Indian Ocean and in international waters is on the top agenda of the Navy,” Sayyari told Fars news agency on Monday. 

 

So thats why Lybia has a bankster invasion ship off its coast for the first time in months.

 

I cant wait for the shooting to start. I think theres going to be real (as opposed to false flag) terrorism now, bitches!

Mon, 07/18/2011 - 10:10 | 1466100 PaperBugsBurn
PaperBugsBurn's picture


Pakistan's Interior Minister Rehman Malik says Israeli-made weapons have been recently used in the largest Pakistani city of Karachi in order to cause chaos.

“Over 200 persons have been arrested and Israeli-made weapons, including AK-45, have been recovered from them. It proves that foreign hands are behind the unrest in Karachi,” Malik said, a Press TV correspondent reported. 

Mon, 07/18/2011 - 10:38 | 1466206 goldsaver
goldsaver's picture

Wow. Israeli made copies of a failed Kalashnikov prototype from the 40's. Damn, those jooos are desperate!

Mon, 07/18/2011 - 09:39 | 1466009 Sudden Debt
Sudden Debt's picture

China needs to deflate it's currency so it's logical that they buy dollars.

Japan's currency is at risk of implosion wo they buy what they have bought all of their history to protect it.

Japan will be the biggest loser in this game.

China will gain from a US default.

 

Mon, 07/18/2011 - 09:40 | 1466015 morph
morph's picture

I wish the UK would stop buying this Junk.

Mon, 07/18/2011 - 09:55 | 1466049 Larry Darrell
Larry Darrell's picture

I wouldn't worry that the UK is buying this junk.

More likely, UK serves as a conduit to purchase this junk with freshly printed/digitized dollars from the FED.  It's doubtful that the UK is buying.  It's just the US continuing to monetize.

Mon, 07/18/2011 - 10:00 | 1466061 unky
unky's picture

Of course you are right. Countries buying each others debt with money they printed before. Just not make it so easy and make it look like another country is purchasing your debt. Thats what a ponzi this all is

Mon, 07/18/2011 - 09:41 | 1466016 PaperBugsBurn
PaperBugsBurn's picture

Russians were always smarter than the chinese. When it comes down to it china will choose europe and BRICS over US. Don't count your chickens until they're hatched. The US economy is dead. Perpetual QE will not be tolerated. Vlad is just taking first mover advantage.

Mon, 07/18/2011 - 09:46 | 1466021 HedgetBedgadget
HedgetBedgadget's picture

Russians are smarter than most nations on Earth (US and Western Europe included).

 

And on the plus side, they just can't be conquered. And yeah, they are tough.

Mon, 07/18/2011 - 09:51 | 1466038 PaperBugsBurn
PaperBugsBurn's picture

Look, none of this would be happenning if it wasn't for uncouth Amerikan imperialism. If you were a nation of decent ways the whole world wouldn't be sizing you up for a golden fall.

Mon, 07/18/2011 - 10:00 | 1466050 HedgetBedgadget
HedgetBedgadget's picture

Who said I'm American, a WASP or a tree hugger from Silicon Valley?

And who says I give a fuck about "Amerika" or "za* Amerikanz"?

Fuck them. They deserve what's coming.

Mon, 07/18/2011 - 10:13 | 1466108 PaperBugsBurn
PaperBugsBurn's picture

My bad.

Mon, 07/18/2011 - 09:49 | 1466030 Tyler Durden
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Russia sold Treasurys in May and bought Gold. Resulting two month ROIC difference: >> 10x.

Mon, 07/18/2011 - 09:52 | 1466042 PaperBugsBurn
PaperBugsBurn's picture

On the day of the Domedovo bombing the BoR came out and said they would be purchasing 100 tons of gold/year from domestic sources.

 

They know the score.

Mon, 07/18/2011 - 10:01 | 1466063 Internet Tough Guy
Internet Tough Guy's picture

The 22 ton gold purchase is from last year, not this year.

Mon, 07/18/2011 - 10:05 | 1466079 Raymond Reason
Raymond Reason's picture

I was placing my bet on Germany and Russia to end up in the best shape after the global shakedown takes place.  But now after seeing the Stress Test report on German banks...well, i'm glad i chose Russian as a second language. 

Mon, 07/18/2011 - 13:38 | 1467035 LawsofPhysics
LawsofPhysics's picture

What does this mean for the ruble versus the dollar?

Mon, 07/18/2011 - 09:47 | 1466023 Oh regional Indian
Oh regional Indian's picture

Look at the UK though. Rising steadily.

While it'self stuck in a stagflationary nightmare from hell. Well, ordinary britons anyways.

See this from another thread:


by Quinvarius 
on Mon, 07/18/2011 - 09:07
#1465931

yuan revalued 9% last night.  not a peep.

So, right hand does this, left hand does that, third hand fondles oil while th efourth tickles PMs.

It would take some intense modelling to predict any of this correlated craphouse. Especially the great X, manipulation acting to it's own drunken rhythm.

ORI

http://aadivaahan.wordpress.com/2011/07/16/66th-anniversary-of-trinity-and-thoughts/

Mon, 07/18/2011 - 09:47 | 1466024 SheepDog-One
SheepDog-One's picture

China has that Kung-Fu grip!

Mon, 07/18/2011 - 09:50 | 1466034 Raymond Reason
Raymond Reason's picture

??? ???????? ???? ???????, ?????.  I like this man, Putin. 

Mon, 07/18/2011 - 09:52 | 1466044 Raymond Reason
Raymond Reason's picture

Okay, can't post in cyrillic. 

Mon, 07/18/2011 - 12:15 | 1466677 pvzh
pvzh's picture

?????, ?????...

Yes, you can. You might not be able to copy/paste (different web-sites use different ways to display cyrillic characters, and that messes things up).7

Mon, 07/18/2011 - 12:24 | 1466708 pvzh
pvzh's picture

Ops... You are right. However, it was fine in the preview. Weird...

Mon, 07/18/2011 - 09:51 | 1466040 kito
kito's picture

look for our bonds to continue to sell like hotcakes once the tap is opened. all of those looking for participation to wane in the short term will be very disappointed.

Mon, 07/18/2011 - 09:54 | 1466046 SoNH80
SoNH80's picture

You are technically correct, in that the Federal Reserve will massively expand its monetization purchases of Treasury bonds.  But is that REAL demand?  No, it is not.

Mon, 07/18/2011 - 10:00 | 1466056 hedgeless_horseman
hedgeless_horseman's picture

But is that REAL demand? No, it is not.

 

Watto: How are you going to pay for all this?
Qui-Gon Jinn: I have twenty thousand Republic dataries.
Watto: Republic credits? Republic credits are no good out here. I need something more real.
Qui-Gon Jinn: I don't have anything else...
[waves hand]
Qui-Gon Jinn: But credits will do fine.
Watto: No, they won't-a.
[Qui-Gon waves his hand more firmly]
Qui-Gon Jinn: Credits will do fine.
Watto: No, they won't-a. What? You think you're some kind of Jedi, waving your hand around like that? I'm a Toydarian. Mind tricks don't work on me. Only money. No money, no parts, no deal!

Mon, 07/18/2011 - 10:01 | 1466062 SoNH80
SoNH80's picture

LOL!  How's this---

Back with my wife in Tennessee, when one day she called to me
"Virgil, quick, come see, there go the Robert E. Lee"
Now I don't mind choppin' wood, and I don't care if the money's no good
Ya take what ya need and ya leave the rest
But they should never have taken the very best

Mon, 07/18/2011 - 10:05 | 1466081 kito
kito's picture

no sonh80, there will be NO qe3 purchases of additional bonds this year. the demand will be there without the fed. the debt leopard continues to pursue the bond buying gazelle....

Mon, 07/18/2011 - 10:08 | 1466088 SoNH80
SoNH80's picture

Whatever you say, dude.... those $1.5 trillion annual deficits have to get funded somehow..... stay tuned I suppose.....

Mon, 07/18/2011 - 10:00 | 1466059 Raymond Reason
Raymond Reason's picture

Yeah, i'm trying to figure out where to advise my mom to park her money, since she'll only put a small fraction in PM's.  (years of conditioning).  I'm thinking short term T-bills, the least risky?  Any suggestions?

Mon, 07/18/2011 - 10:04 | 1466073 SoNH80
SoNH80's picture

Have her get a Certificate of Deposit from her local credit union (she should join one if she hasn't already).  A square deal from an honest entity.

Mon, 07/18/2011 - 10:08 | 1466092 Raymond Reason
Raymond Reason's picture

She's sitting on cash now, but in a money market fund through Merrell.  But i don't believe there is any deposit insurance on MMfunds.  It's good advice.  Thanks.

Mon, 07/18/2011 - 10:13 | 1466109 SoNH80
SoNH80's picture

During the 2008 panic, foreign holders of U.S. money market funds began to stampede out... certain funds broke the buck.... credit unions offer both insured and non-insured products for your savings needs (you have to balance risk and $ reward), and by joining, you'll be joining the largest organized social movement in the world.  I urge all ZHedgers to support their local credit union, the banksters DESPISE credit unions, as they aren't owned by faceless reptilians, but rather by YOU, the members, in cooperative association.....

Mon, 07/18/2011 - 10:37 | 1466202 Raymond Reason
Raymond Reason's picture

Interesting. 

Mon, 07/18/2011 - 10:03 | 1466070 Jovil
Mon, 07/18/2011 - 10:23 | 1466151 lolmao500
lolmao500's picture

I need my fix, man!

Mon, 07/18/2011 - 11:03 | 1466301 papaswamp
papaswamp's picture

So many peoplebust on Russia..but they may become the smartest kids on the block opting to step away from paper exposure.

Mon, 07/18/2011 - 11:04 | 1466309 papaswamp
papaswamp's picture

So many people bust on Russia..but they may become the smartest kids on the block opting to step away from paper exposure.

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