Treasury Sales By Foreigners Hit Record High In April

The monthly TIC (foreign capital flows) data gets less respect than it should. Perhaps it is because it is two months delayed, or perhaps due to the Treasury Department labyrinth one has to cross in order to figure out what is going on. Either way, for those who do follow the data set, will know by now that in April, foreign investors, official and private, sold $54.5 billion. Why is this number of note? Because it is the biggest monthly sale of Treasurys by foreigners in the history of the data series. The TSY revulsion was somewhat offset by a jump in MBS purchases, which saw $23 billion in acquisitions, while corporate bonds were sold to the tune of $4.5 billion. Finally, looking at equities, foreigners were responsible for some $11.2 billion in US stock purchases. The great rotation may not be working domestically, but it seems to be finally impacting foreign investors.

As for the question who sold the most US paper, the answer is below: not surprisingly, Japan is at the top, and we can only imagine the proceeds from the sale were used to fund (currently even more money losing) purchases in the Nikkei, which is currently at levels last seen in March, or before the great BOJ intervention.

Comments

[Goldbugger]

https://secure.avaaz.org/en/stop_prism_global/?aQRIQeb

[prodigious_idea]

So the chart says there were $50 trillion in treasury liquidations for the most recent period?  Those decimal places are tricky.

[swissaustrian]

China is not on the list?

---

Japan is consuming capital, imho it didn't go into Nikkei.

[nugjuice]

China's there. About 5th one over

[vote_libertaria...]

So that explains why Treasurys are being bid up...because now we know countries are unloading theirs...uhhh...errr....yea.

[fonzannoon]

Caribbean banking centers? Romney was selling? Who is that?

[Yen Cross]

    Fonz is the new " Bond Guru".  I like his passive style as well.  Gbp/Aud is performing as expected. Almost another 200 pip smackdown.

[fonzannoon]

Thanks Yen. Yields will definitely be moving up and down from here on out. I'm certain of it. I just don't know when and which way. But that's not important. I will be sure to update everyone after it happens.

[Yen Cross]

  ROTFLMAO. +1

[RSloane]

Hahaha +1

[Peachfuzz]

Fonz, if this bond thing doesn't work out for you, you'd make a great replacement for my weatherman. =D

[fonzannoon]

My Dad, to this day, still gets pissed off once a month and yells at me for not being a weatherman.

[Peachfuzz]

deleted, txt features won't work right

[TheEdelman]

Nick Cage was good in The Weatherman.  His only other good movie... Raising Arizona

[RafterManFMJ]

Her insides were a rocky place where my seed could find no purchase.

[MrSteve]

For a serious heads up, check Jim Willie's post here where he is calling the international T-bond sales event 10 days ago..

Willie's style is unique and uniquely prescient, as if he had some Minority Report babes in a tank doing future envisioning of economc crimes....

http://www.gold-eagle.com/editorials_12/willie060413.html

[youngman]

That 54.5 someday will be 554.5 I think.....

[fonzannoon]

It's going to be interesting to see how it develops. There are a lot more asks than bids happening out there.

[CheapBastard]

If you don't hold it, you don't own it:

http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_article_larg...

[Dr. Engali]

At that clip the Bernank will have to pick up his pace of treasury buying. Taper ...what taper?

[SheepDog-One]

So who is buying them, space aliens?

[bnbdnb]

Retirees moving to stable funds.

[Dr. Engali]

Lehman brothers.

[pods]

Same people who aren't monetizing new issues.

pods

[Yen Cross]

    I own some long bonds. (TIPS)

[firstdivision]

I hope you just bought those TIPS, and not that you've been holding TIPS

[Yen Cross]

  I'm holding them as part of my portfolio. (10%)  When if we go TEOTWAWKI. I won't miss 10%

[firstdivision]

Time to play the spread

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=0&chfdeh=0&chdet=1371240000000&chddm=1173&chls=IntervalBasedLine&cmpto=NYSEARCA:UNG&cmptdms=0&q=NYSEARCA:USO&&fct=big&ei=Ai67UcjANoKH0QHUgQE

Things not looking good for those that are all giddy on WTI.  http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=0&chfdeh=0&chdet=1371240000000&chddm=1000.9999999999999&chls=IntervalBasedLine&cmpto=NYSEARCA:SPY&cmptdms=0&q=NYSEARCA:USO&&fct=big&ei=ZS67UbjjOoWr0AHTDw

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=0&chfdeh=0&chdet=1371240000000&chddm=8371.000000000001&chls=IntervalBasedLine&cmpto=NYSEARCA:SPY&cmptdms=0&q=NYSEARCA:USO&&fct=big&ei=ZS67UbjjOoWr0AHTDw

[Inthemix96]

Righty hoe,

I'll admit it then, it was me.

[put_peter]

You cant escape them it is treasuries or something else... feels like being in the infamous department store in South-Korea. Except that the escape routes are blocked.

[CrashisOptimistic]

Hard to first of all get excited about $50 Billion out of 17 Trillion, but further, this was for April and Japan was getting ready for their great experiment.

The past week, the terror has set in, and when people are terrified they do buy Treasuries.  Doesn't matter if you don't like that.  That's where terrified money goes.

Old folks have a lot of money, and they scare easily.

[syntaxterror]

 My, my, my, I just don't understand why on earth someone wouldn't want to buy a 10-year 2% USSA IOU.

[Whiner]

Because they know it will be retired by the $17 Trillion in your and other
hapless citizens retirement accounts when its digital assets are swapped for "America Safe Retirement FRNs". Voila! Budget balanced, deficits roll on!

[lolmao500]

Who wants treasuries of a bankrupt, fascist nation?

[Clowns on Acid]

Let's  see now... I have $1400.00 that I don't need for 10 years. Should I buy 1 oz of gold or a TBond at 2% NOMINAL yield ?

This is a really hard decision....