Chinese Treasury Holdings Drop To Lowest Since February 2013 As "Belgium" Treasurys Post First Decline Since August

Tyler Durden's picture

With everyone expecting "Belgian" US Treasury holdings to surge by another inexplicable double-digit billion amount, and surpass $400 billion in what has been the most aggressive, and secretive, accumulation of TSYs by an unknown third-party using the Belgian jurisdiction as venue via Euroclear, the April holdings of the small European country posted their first drop since August. According to the TIC data released moments ago, total "Belgium" holdings - the third largest after China and Japan - declined by $15 billion in April, to a new grand total of $366 billion.

Offsetting this drop, almost to the penny, was the first increase in Russian paper which after posting its largest decline in history in March for reasons well-known, saw a $16 billion increase from its cycle lows of just $100. Still, this was a 22% decline from Russia's holding as of a year ago. Furthermore, considering the deterioration in relations between Russia and the US since April, it would not surprise anyone if this blip in Russian TSY holdings is quite transitory, and the May data shows that Russian holdings have already dipped into double digit range.

Finally, looking at the top two holders of US paper, Chinese holdings declined from $1272.1 to $1263.2, the lowest Chinese total holdings since February 2013, which once again was offset almost to the dollar by Japan, whose holdings increased by $10 billion to $1209.7 billion - just shy of the insolvent island's largest US paper holdings on record.

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Cattender's picture

it's just so obviously a MASSIVE Economic Recovery... i only hope the Brutal Summer Vortex does not Derail it..

Winston Churchill's picture

That would be a Solar vortex.

JJdog's picture

I thought the killings in Iraq will derail the economic growth in the US, no?

Dewey Cheatum Howe's picture

You must not read the New York Times......

 

GrinandBearit's picture

Maybe Zimbabwe will start buying Treasuries and save the US economic system.

yogibear's picture

That's probably one place the Federal Reserve doesn't have an account in.

Just the thought of US Federal Reserve using an account in Zimbabwe buying $200 billion of Treasuries would be outragious. 

CNBC and the media would spin it as bullish.

youngman's picture

That is because Spain is a better deal...

Colonel Klink's picture

Assume the crash position! Belgium just needs to step up their game and dedicate more than their GNP to buying US bonds. Oh wait...they already are.

novictim's picture

Just to be clear, Klink.  The Belgian government is not directly involved in these purchases and sell backs.  The player is "an unknown entity".

Think ET.

Kirk2NCC1701's picture

Kirk is betting it's those damn Cling-ons.

SpanishGoop's picture

FED switching to Russian paper.

Looks like they are looking to the future.

 

schatzi's picture

Seriously, who the fuck is behind this Belgium? The ECB? Does it even have a definite mandate to do so? Highly unlikely in my books. Even if it did have such mandate by some vague circumvented definition, to not dislose these sums to the public is less than kosher. If I, the European taxpayer am holding US debt. I'd fucking like to know how much garbage debt I've aquired. On the other hand, US ttreasuries are less smelly than PIIGS treasuries, so I'm fucked either way.

NotApplicable's picture

Ask Euroclear, as they are the intermediary.

RaceToTheBottom's picture

OK, who is the new Belgium this month?

Danno Anderson's picture

The Belgium ruse is now known by public so the US FRB has to create another ficticous scam to buy US bonds.  tick tick The debt bomb is ready to blow up. 

 

 

goldhedge's picture

JAPAN AND BELGIUM FIGHTING OVER WHO IS AMERICA's #1 b1tch

 

Kirk2NCC1701's picture

If China really wanted to mess with Japan, they'd simply ditch more, to force Japan to buy more.