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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Mon, 06/16/2014 - 09:20 | 4860902 Cattender
Cattender's picture

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

Mon, 06/16/2014 - 09:29 | 4860928 Winston Churchill
Winston Churchill's picture

That would be a Solar vortex.

Mon, 06/16/2014 - 09:37 | 4860952 JJdog
JJdog's picture

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

Mon, 06/16/2014 - 13:57 | 4861894 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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


Mon, 06/16/2014 - 09:25 | 4860912 GrinandBearit
GrinandBearit's picture

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

Mon, 06/16/2014 - 09:32 | 4860933 yogibear
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.

Mon, 06/16/2014 - 09:26 | 4860919 youngman
youngman's picture

That is because Spain is a better deal...

Mon, 06/16/2014 - 10:12 | 4861072 Colonel Klink
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.

Mon, 06/16/2014 - 14:30 | 4862051 novictim
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.

Mon, 06/16/2014 - 19:44 | 4863267 Kirk2NCC1701
Kirk2NCC1701's picture

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

Mon, 06/16/2014 - 10:30 | 4861136 SpanishGoop
SpanishGoop's picture

FED switching to Russian paper.

Looks like they are looking to the future.


Mon, 06/16/2014 - 10:36 | 4861155 schatzi
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.

Mon, 06/16/2014 - 10:45 | 4861187 NotApplicable
NotApplicable's picture

Ask Euroclear, as they are the intermediary.

Mon, 06/16/2014 - 10:44 | 4861182 RaceToTheBottom
RaceToTheBottom's picture

OK, who is the new Belgium this month?

Mon, 06/16/2014 - 10:47 | 4861192 Danno Anderson
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. 



Mon, 06/16/2014 - 10:53 | 4861205 goldhedge
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Mon, 06/16/2014 - 19:48 | 4863284 Kirk2NCC1701
Kirk2NCC1701's picture

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

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