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TIC Update: In September Foreign Central Banks Dumped The Biggest Amount Of US Agencies On Record

Tyler Durden's picture




 

While we await for the Treasury Department to actually update its complete September TIC LT flow data tables, here is some of the data we can compile with what has been released so far. China is now once again solidly ahead of the Fed in terms of total Treasury holdings, owning $883.5 billion USTs in September, a $15 billion increase from August, of which $10 billion came from an increase in non-Bill holdings, and the balance from Short Term, which at $21 billion have risen to the highest since... April 2010. This is peanuts. The Fed will surpass this total by Thursday. The bigger surprise came from Japan, which added $28.4 billion in Treasury debt to a total of $865 billion, of which just $3.5 billion was from ST holdings. The broke UK moderated its torrid pace of gobbling up US debt and added just $10.7 billion in US paper to bring its new total to $459 billion. Notably, in September hedge funds (Carribean Banking Centers) sold $14 billion of Treasuries as they took the proceeds and invested it all in Apple to force the biggest short squeeze in history (note the number of HF adding Apple as of Sept. 30, shares which they have almost certainly disposed of since). The biggest surprise by far in today's TIC update had little to do with Treasury holdings but instead had everything to do with Agencies, the security most in peril courtesy of the massive fraud perpetuated by MERS and the robosigners. To wit: Foreign Official institutions (primary central banks) dumped a massive $31.4 billion in Agencies: a record number since the TIC data has been reported in 1978. This was offset marginally by Agency purchases by other foreigners of $23 billion, although the dump by central bankers what everyone will be focused on. This is certainly news that PIMCO and all the other RMBS investment funds did not need to see today.

More charts to be added as Tim Geithner finally decides to update the LT change table.

China holdings:

UK Holdings:

Total change in securities monthly:

And, most importantly, foreign holdings of Agency Securities. Note the plunge in Foreign Official Holdings:

 

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Tue, 11/16/2010 - 11:13 | 730769 treemagnet
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Don't worry about Bill, Ben'll give him an advanced peak at the next "big thang".  

Tue, 11/16/2010 - 11:13 | 730774 Yikes
Yikes's picture

I had orginally thought that a portion, if not most, of QE2 was going to be purchases of MBS' to bail out the banks.  I was wrong and the Fed annouced is was going after Treasuries.  Is that about to change or is it steady as she goes for the Fed?

Tue, 11/16/2010 - 11:17 | 730779 99er
Tue, 11/16/2010 - 11:19 | 730791 DollarDive
DollarDive's picture

More importantly - HAS EVERYONE BOT THEIR OUNCE OF SILVER ? 

Tue, 11/16/2010 - 11:45 | 730907 Silva Plata
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Si

Tue, 11/16/2010 - 13:01 | 731213 ATG
ATG's picture

ouch

Tue, 11/16/2010 - 15:39 | 731890 tmosley
tmosley's picture

Added 25 last week.  I might make a larger order with some of my dry powder.

Tue, 11/16/2010 - 11:23 | 730794 virgilcaine
virgilcaine's picture

What's going on at  Max Keiser site?  he is losing it.. silver..jpm.. silver..does he not know it is an industrial metal tied to production? 2008 silver went from $ 20-8 $.

Tue, 11/16/2010 - 11:35 | 730861 LowProfile
LowProfile's picture

Yeh, and that had nothing to do with JPM...

Oh, why bother.  Let's just recognize that you're a douchebag and forget this ever happened.

Tue, 11/16/2010 - 11:46 | 730916 Double down
Double down's picture

He IS losing it.

That voice of his cause my ears to bleed.  Mute him and look at your trinkets, they are oscillating.  

Tue, 11/16/2010 - 13:05 | 731231 ATG
ATG's picture

So far silver -14% from 29.33 to 25.13 in a week

So much for sure things

Tue, 11/16/2010 - 15:40 | 731898 tmosley
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Because all markets always move in a straight line, right?

Tue, 11/16/2010 - 13:20 | 731290 cpgone
cpgone's picture

Short it partyer. Max buys the global warming scam but other than that ,his analysis is spot on.

I got a silver certificate (looks like the fiat crap you have in your purse/wallet)from a country called the United States. Wiser heads years ago knew better. Heh the USD is in rally mode. Maybe Dick Cheney was right?

 

Tue, 11/16/2010 - 11:19 | 730797 goldmiddelfinger
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Gee I just couldn't tell from the price action over the last week.

Tue, 11/16/2010 - 12:04 | 730993 Crispy
Crispy's picture

Or the last 60 days for that matter

Tue, 11/16/2010 - 11:21 | 730804 pagan
pagan's picture

"And, most importantly, foreign holdings of Agency Securities. Note the plunge in Foreign Official Holdings:"

What's even more surprising is why they began to buy them again after 2008?

 


Tue, 11/16/2010 - 11:43 | 730897 tickhound
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Even MORE surprising is they dumped them in the face of Erin Burnett's reassurances of foreign investor demand.

Tue, 11/16/2010 - 11:22 | 730807 Beatscape
Beatscape's picture

Does this mean that the extend and pretend policy is in jeopardy?  Doesn't anyone want to join Fannie and Freddie in holding their damaged goods?  Oh my!

Tue, 11/16/2010 - 11:29 | 730831 virgilcaine
virgilcaine's picture

Someone is using Keiser site to dump all their silver on, don't go for it.  He a shill for some speculative hedge fund probably or Ex Male Pros commodity trader.

Tue, 11/16/2010 - 13:33 | 731355 cpgone
cpgone's picture

So the guy who is "losing it" can  influence the entire WW silver market?

B/c its the paper price you are talking about. Physical demand is through the roof.

We are talking the same MK that sells no silver directly?

Is that you JP Morgan? Its OK. I thank bankers are very mis-understood.

 

Tue, 11/16/2010 - 15:42 | 731905 tmosley
tmosley's picture

Nothing wrong with taking silver out of the hands of some dumbshit hedge fund.

Move all remaining silver to strong hands.  We can end this crap a lot faster that way.

Tue, 11/16/2010 - 11:26 | 730835 AbandonShip
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Who said Fed Front-running is only for Americans? 

Tue, 11/16/2010 - 11:30 | 730843 Silverhog
Silverhog's picture

Whats the chance of a green smile on the POMO market today. Not looking good. I think I will take a ride by my coin shop this afternoon.

Tue, 11/16/2010 - 11:39 | 730877 bullmarket
bullmarket's picture

Isn't PIMCO calling a bond bubble- why would they be surprised?

Tue, 11/16/2010 - 13:34 | 731364 sbenard
sbenard's picture

It's a mass foreign stampede for the exits!

 

It seems we've finally realized that the Fed can't prop up paper asset values after all! Can you say, "CRASH"?

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