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China, Russia Dump US Treasurys In October As Foreigners Sell Most US Stocks Since 2007
Perhaps the most notable feature of the October Treasury International Capital report is that in October foreigners sold a whopping $27.2 billion in US equities, surpassing the dump just after the first Taper Tantrum, when they sold $27.1 billion in June of 2013 when they also sold $40.8 billion in Treasurys. This was the largest selling of US corporate stocks by foreign entities since the August 2007 quant flash crash, when some $40.6 billion in US stocks were sold by offshore accounts.
However, what this month's TIC data will surely be best remember for, is that both China and Russia dumped US Treasurys in October, some $14 billion and $10 billion, respecitvely, in the process sending China's total Treasury holdings to just $1,253 billion, the lowest since February 2013 and just $30 billion more than the TSYs held by America's second largest (offshore) creditor, Japan. This happens even as Belgium which many have said is a proxy for Chinese bond purchases, also saw its total holdings decline by $5 billion to $348 billion.
As for Russia, after selling $9.7 billion in October (a process which certainly continued in November) its latest total is just $108 billion, or just modestly higher than the $100 billion hit in March after the Ukraine conflict first broke out, and the second lowest total Russian Treasury holdings since 2008.
For a long time China and Russia have been warning about selling US paper, if only in theory. Increasingly, this appears to be also taking place in practice.
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defending currency means selling anything usd denominated ... most likely why treasury yields rose today ... it shall pass soon enough ... and treasury yields dig lower ... much lower
Pretty sure Senior Putin would love to see China dump all us t bonds all at once
meanwhile on planet earth
http://www.financialsense.com/node/14688
Preparations for World War 3 is almost complete. Once it starts, billions will die while the elite goes into their bunkers.
I hope they are equipped to live in those bunkers for millenia because when the spent fuel pools light up the surface will be uninhabitable by any higher life forms for a very long time.
Well, what the fuck else anybody expect?*
* excludes just about everybody here at The Hedge who figured this was coming, even if expecting it for the last 20 years, broken clocks, menstrual cycles, precession and return of Nibiru and the Annanukiand don't forget that somewhere, some day, there will be one heuv a grwt buying opportunity. Of what I am not certain, but a great opportunity for each and every one of you.
My people came here originally for gold, not janet's green toilet tissue
Oh, that was a typo? We thought you meant you were here for the nooki, you know, discreetly speaking, wink, wink.
Is that what makes a strong dollar?
What doesn't kill ya makes yer dollar stronger.
- Yannet Jellen', addressing the 2014 Islamic Halal Rat Entrails and Sphincter Processors and Distributors Conference, Washington DC, December 15, 2014
knukles is much smarter than his avatar looks!
china will make a fortune (capital gains) if it holds US T bonds as yields move lower
Imagine the profits that the Fed is sitting on after buying up its trillions of long term Treasuries. Hedge funds are green with envy.
One thing uncovered during the DC US' treason at the Bundy ranch was that the Chinese are converting, by hook or crook (Reid), their paper dollars into hard assets in the American country.
I don't think they are all that motivated to dump their bonds, as they want to convert as many as possible into ownership and control of America, as the Zionists move their operations over to Europe and the euro.
I think that the real threat from Russia and China is them starting to demand gold for their wares and commodities. That would instantly constrain the Zionist west further and boost the value of their gold holdings.
A gold backed Renminbi might be the ticket for China, as they mostly sale finished goods, but Russia could just flat out demand gold-for-BTUs.
2015 is going to be interesting.
An American, not US subject.
I quit my former golf club because of their mismanagement beginning in 2009. They have been running in the red for the past 3 years and used up all of the capital reserves for operating expenses. I finally had enough when they announced their first assessment.
In my exit interview, I advised all employees to update their resume. I told the board to contact the Chinese consulate to find an eager buyer.
No one was amused....except me.
I may be way off on understanding this but...
Or, perhaps, China may trade there USTs to Russia for oil so Putin can dump them to stabilize the ruble and punish the USSA.
It only gets bitter from here...
How bitter could a biter be, if bulls could ban biters?
Bitter harvest after a bitter winter, caused by pathologically bitter people.
How would you like that Chicken? Chicken Kiev style or nuked?
Yay!
well thats not very neighborly
hardly a gamechanger. in other news the ruble got taken to the woodshed
Fewer purchases and fewer tourists from Russia.
More bad news for the EU
Bring it all down, baby
All the Russian tourists are already in Miami now; they know Yurp is no place to recharge or have fun in December.
"Western block's actions not only failed to isolate Russia, but seems that managed to expand Russia's and China's geopolitical influence. It's not the first time that the 'brilliant minds' of various think tanks miss the target so profoundly. Their 'brilliant idea' to support the neo-nazis in Ukraine to put Russia in the corner, is turning now against them."
http://failedevolution.blogspot.gr/2014/08/a-perfect-timing-for-argentin...
I believe it's being managed by design. The smartest (and the most influential) ones already grasped that country owning more than trillion of us debt cannot be messed with anymore. Their only remaining contribution to meaningful geopolitics is to silently help China reestablish the new system on her own in a quiet way while trying to position themselves as much as possible in the new system. Once other 'bodies' are left without supervision of the smartest, their natural naivety and incompetentness will complete the job exactly by applying such 'brilliant ideas' you are mentioning. Leaving them alone with their 'ideas' means US political free fall guaranteed, and as a bonus, with persons and bodies reponsible for the crash you can directly point at. Clever, isn't it?
The only thing that could endanger the China's leading position is to install a US president who will continue blowing up the debt to such extent that the current 1.2 trillion debt owned by China becomes a negligible amount.
Actually, imagine you were in a win-win situation, where your pawns pay the price of any shortcomings or lack of foresightedness on your part.
Imagine, you don't care if you win the current battle, but only care if you come out stronger regardless. Sort of an Ia Drang battle for the Zionists--win or lose, you win.
Push up the dollar "markets." Push up the dollar. Sell your dollar assets, and then transfer the currency to Europe where, because of the increased dollar, you can get more euros than just a couple months ago. Crash the dollar "markets," and then the dollar. Come back into the dollar ruins and snap up assets on the cheap.
2015 is going to be interesting.
An American, not US subject.
You really think the US President has any say in such matters? Wow, just wow.
Absolutely not, that's why I'm writing about 'installed president'.
America's second largest (offshore) creditor, Japan.
The fuckin irony...... LOL!!!
So WTF aren't Russia+China or the entire BRICS going after JAPAN? If Japan falls, so do the other dominoes.
Not enough brains, not enough balls, or too much FUDD (Fear, Uncertainty, Doubt, Dissent) that TPTB are injecting into them?
I smell a Biggus Ratus in the Apparatus.
BRICS are just fascists. The US and NATO are imperialist fascists.
Why waste your time & money on someone who's about to kill himself anyway ?
So are we talking crash this month or next month?
My vote is January, but a lot of mayhem could happen during the no-volume week between Christmas and New Year's, especially due to people bailing out on 2015 and/or tax liquidations in a no-vol market, but I'm guessing Janet would intervene.
January is good timing for the new congress as well.
12/22/2014. 14, 2x, 7, after G7 and G20. Only date of the year that fits. Will have a two day mid-week holiday and a weekend to really load up.
Serial junker on the loose
a mere $1.25T left, lulz
Commies are selling TSY and buying falsely inflated Manhattan real estate. Makes perfect sense in the New World Order.
Ouch. That's going to leave a mark (Janet, I think you soiled yourself a little.)
Undoubtedly Russia is selling US Treasuries (and getting lots of dollars at these prices) - then in turn, Putin is using the proceeds to buy heavily discounted rubles. So the US Policy is letting Putin 'Sell High' for his treasuries, and 'Buy Low' for Rubles. Isn't this the dream of every investor? And we call this 'punishment'?
buy low and sell lower.
Maybe there's no motivation for profit, could be a strategic move to shove the western economies further into the hole.
'156'..? I thought it was '36', Marvin...?
yes sabre rattling might play well in the short term but then not!
Better tell NATO to stop rattling then
Well since the dollar hasn't been backed by shit in like, forever, and digital zeros are still accepted everywhere just how long will it take to really make a difference and aren't these other countries just buying the fkn garbage with their own garbage? So in the end no one wants each other's crap or what? I'm getting tired of the game let's get to the fireworks already.
When the USD dies, it will be overnight
I don't think that's correct. I believe it will start slowly and then increase geometrically. But it will take time.
China and Russia just need to dump enough Treasuries to get the 10-Year to 5% to really get this party started.
Oh, and raise rates already Janet, you chicken shit!
China can do it but not Russia. Japan will likely keep printing Yen to buy USD
Not one of any of these month's sales or dumps or USTexits comes even close to the $85 billion in FRN the FED was putting out into global liquidity, until recently. How many trillions of dollars have been created lately?? The paper numbers compared to gold are meaningless as long as we can print either T notes or FRN depending on a printing press plate change. We really don't even have to print cash anymore, the electronic variety works just like the paper variety, without the physical overhead of handling, counting and shipping. Any comparison to gold by its weight is just a fantasy mark to market calculation. The real weighing will take place in an unknown future.
Brics would be much better off to go gold standard AFTER they have dumped all dollar holdings, no?
Don't worry. Belgium will swallow it.
Chamber another 1000 tonne round of Au. Mr. Xi is waiting patiently for a trial of his new weapon.
Is this the hairtrigger mechanism to start WW3 in Ukraine?
Does this have anything to do with "isolation?" LOL.
They sold an uber? whoop-dee-f'n-doo.
An uber ain't worth a minute's worth of printing moar electrons. /sarc
Anyone seeing now the connection to the sudden rise in the dollar?
If you are a connected and/or "Chosen" one, you are going to be able to dump dollar assets after the dollar has been pushed up against the euro and shekel, and before the dollar based "markets" tank on the sheeple.
2015 is going to be a year to remember--"Duck (sell) and cover (physical)."
An American, not US subject.
Call me when they do some serious Treasury dumping.
MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES (in billions of dollars)
OCT 2013: 5655.1
OCT 2014: 6058.9
Seems to me foreigners are still accumulating US treasury. About 400 billion in the last 12 months.
But hey, zoom in on 1 thing and act like the everything is collapsing, if that's your kind of thing.
Absolute values are about the same but theres been a big move from long to short-term holdings. In many ways this is more significant than the absolute values.
I will concede that the amounts 'dumped' here are quite small in terms of overall holdings.
Crude closed at $55.91 today. Going down to $40 range shortly. Putin must be wetting his pants knowing that without petro dollars, Russia becomes again a basket case.
AND
CHUNA and RUSSKIES MISSED A FRIGGIN BIG CAP GAIN
UST 2.35% to 2.12% DUH!
So they made a bad decision. DUH!
As far as I can see, the dollar is doomed. There will be a lot of pain and suffering. Good riddance, lets build a strong nation again. One based on liberty and freedom. Hang th neocons.