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China, Russia Dump US Treasurys In October As Foreigners Sell Most US Stocks Since 2007

Tyler Durden's picture




 

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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Mon, 12/15/2014 - 17:49 | 5555360 Bell's 2 hearted
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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

Mon, 12/15/2014 - 17:54 | 5555386 max2205
max2205's picture

Pretty sure Senior Putin would love to see China dump all us t bonds all at once

 

 

Mon, 12/15/2014 - 17:54 | 5555392 pendragon
pendragon's picture

meanwhile on planet earth

Mon, 12/15/2014 - 18:10 | 5555468 Publicus
Publicus's picture

Preparations for World War 3 is almost complete. Once it starts, billions will die while the elite goes into their bunkers.

Mon, 12/15/2014 - 18:13 | 5555491 Bastiat
Bastiat's picture

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.

Mon, 12/15/2014 - 18:34 | 5555590 knukles
knukles's picture

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.  

Mon, 12/15/2014 - 18:50 | 5555666 Anunnaki
Anunnaki's picture

My people came here originally for gold, not janet's green toilet tissue

Mon, 12/15/2014 - 20:13 | 5556037 MrSteve
MrSteve's picture

Oh, that was a typo? We thought you meant you were here for the nooki, you know, discreetly speaking, wink, wink.

Mon, 12/15/2014 - 17:59 | 5555417 negative rates
negative rates's picture

Is that what makes a strong dollar?

Mon, 12/15/2014 - 18:41 | 5555594 knukles
knukles's picture

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

Mon, 12/15/2014 - 20:10 | 5556029 MrSteve
MrSteve's picture

knukles is much smarter than his avatar looks!

Mon, 12/15/2014 - 18:16 | 5555513 Bell's 2 hearted
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china will make a fortune (capital gains) if it holds US T bonds as yields move lower

Mon, 12/15/2014 - 19:06 | 5555741 Redneck Hippy
Redneck Hippy's picture

Imagine the profits that the Fed is sitting on after buying up its trillions of long term Treasuries.  Hedge funds are green with envy.

Mon, 12/15/2014 - 19:08 | 5555749 kchrisc
kchrisc's picture

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.

Mon, 12/15/2014 - 19:38 | 5555876 suteibu
suteibu's picture

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.

Tue, 12/16/2014 - 00:15 | 5556828 TheReplacement
TheReplacement's picture

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.

Mon, 12/15/2014 - 17:48 | 5555361 El Oregonian
El Oregonian's picture

It only gets bitter from here...

Mon, 12/15/2014 - 17:53 | 5555389 ShrNfr
ShrNfr's picture

How bitter could a biter be, if bulls could ban biters?

Mon, 12/15/2014 - 18:05 | 5555448 noben
noben's picture

Bitter harvest after a bitter winter, caused by pathologically bitter people.

How would you like that Chicken? Chicken Kiev style or nuked?

Mon, 12/15/2014 - 17:49 | 5555368 Gankfest
Gankfest's picture

Yay!

Mon, 12/15/2014 - 17:51 | 5555377 the not so migh...
the not so mighty maximiza's picture

well thats not very neighborly

Mon, 12/15/2014 - 17:51 | 5555379 pendragon
pendragon's picture

hardly a gamechanger. in other news the ruble got taken to the woodshed

Mon, 12/15/2014 - 19:46 | 5555926 sun tzu
sun tzu's picture

Fewer purchases and fewer tourists from Russia.

More bad news for the EU

 

Bring it all down, baby

Mon, 12/15/2014 - 20:06 | 5556021 MrSteve
MrSteve's picture

All the Russian tourists are already in Miami now; they know Yurp is no place to recharge or have fun in December.

Mon, 12/15/2014 - 17:53 | 5555384 no more banksters
no more banksters's picture

"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...

Mon, 12/15/2014 - 19:07 | 5555645 Anasteus
Anasteus's picture

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.

Mon, 12/15/2014 - 19:18 | 5555794 kchrisc
kchrisc's picture

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.

 

Tue, 12/16/2014 - 00:17 | 5556835 TheReplacement
TheReplacement's picture

You really think the US President has any say in such matters?  Wow, just wow.

Thu, 12/18/2014 - 08:13 | 5567569 Anasteus
Anasteus's picture

Absolutely not, that's why I'm writing about 'installed president'.

Mon, 12/15/2014 - 17:52 | 5555385 Stoploss
Stoploss's picture

America's second largest (offshore) creditor, Japan.

The fuckin irony......  LOL!!!

Mon, 12/15/2014 - 18:11 | 5555471 noben
noben's picture

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.

Mon, 12/15/2014 - 19:49 | 5555933 sun tzu
sun tzu's picture

BRICS are just fascists. The US and NATO are imperialist fascists. 

Mon, 12/15/2014 - 21:32 | 5556313 angel_of_joy
angel_of_joy's picture

Why waste your time & money on someone who's about to kill himself anyway ?

Mon, 12/15/2014 - 17:55 | 5555393 Senduko
Senduko's picture

So are we talking crash this month or next month?

Mon, 12/15/2014 - 18:02 | 5555431 seek
seek's picture

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.

Tue, 12/16/2014 - 00:19 | 5556837 TheReplacement
TheReplacement's picture

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.

Mon, 12/15/2014 - 17:55 | 5555398 StackShinyStuff
StackShinyStuff's picture

Serial junker on the loose

Mon, 12/15/2014 - 17:55 | 5555401 buzzsaw99
buzzsaw99's picture

a mere $1.25T left, lulz

Mon, 12/15/2014 - 17:56 | 5555404 Rainman
Rainman's picture

Commies are selling TSY and buying falsely inflated Manhattan real estate. Makes perfect sense in the New World Order.

Mon, 12/15/2014 - 18:00 | 5555405 Number 156
Number 156's picture

Ouch. That's going to leave a mark (Janet, I think you soiled yourself a little.)

 

 

Mon, 12/15/2014 - 17:59 | 5555412 NoWayJose
NoWayJose's picture

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'?

Mon, 12/15/2014 - 18:01 | 5555420 pendragon
pendragon's picture

buy low and sell lower.

Mon, 12/15/2014 - 18:07 | 5555445 Number 156
Number 156's picture

Maybe there's no motivation for profit, could be a strategic move to shove the western economies further into the hole.

Mon, 12/15/2014 - 18:21 | 5555541 Consuelo
Consuelo's picture

'156'..?   I thought it was '36', Marvin...?

 

 

Mon, 12/15/2014 - 18:35 | 5555598 pendragon
pendragon's picture

yes sabre rattling might play well in the short term but then not!

Mon, 12/15/2014 - 19:49 | 5555940 sun tzu
sun tzu's picture

Better tell NATO to stop rattling then

Mon, 12/15/2014 - 18:04 | 5555433 rsnoble
rsnoble's picture

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.

Mon, 12/15/2014 - 19:50 | 5555946 sun tzu
sun tzu's picture

When the USD dies, it will be overnight

Tue, 12/16/2014 - 07:35 | 5557245 Monty Burns
Monty Burns's picture

I don't think that's correct. I believe it will start slowly and then increase geometrically. But it will take time.

Mon, 12/15/2014 - 18:05 | 5555435 ebworthen
ebworthen's picture

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!

Mon, 12/15/2014 - 19:51 | 5555951 sun tzu
sun tzu's picture

China can do it but not Russia. Japan will likely keep printing Yen to buy USD 

Mon, 12/15/2014 - 20:03 | 5555997 MrSteve
MrSteve's picture

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.

Tue, 12/16/2014 - 00:22 | 5556843 TheReplacement
TheReplacement's picture

Brics would be much better off to go gold standard AFTER they have dumped all dollar holdings, no? 

Mon, 12/15/2014 - 18:07 | 5555451 Panic Mode
Panic Mode's picture

Don't worry. Belgium will swallow it.

Mon, 12/15/2014 - 18:20 | 5555534 Consuelo
Consuelo's picture

Chamber another 1000 tonne round of Au.   Mr.  Xi is waiting patiently for a trial of his new weapon.

Mon, 12/15/2014 - 18:22 | 5555538 Captain Chlamydia
Captain Chlamydia's picture

Is this the hairtrigger mechanism to start WW3 in Ukraine? 

Mon, 12/15/2014 - 18:29 | 5555570 reTARD
reTARD's picture

Does this have anything to do with "isolation?" LOL.

Mon, 12/15/2014 - 18:38 | 5555617 rlouis
rlouis's picture

They sold an uber? whoop-dee-f'n-doo.

An uber ain't worth a minute's worth of printing moar electrons.   /sarc

Mon, 12/15/2014 - 18:58 | 5555711 kchrisc
kchrisc's picture

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.

Mon, 12/15/2014 - 19:02 | 5555718 AustrianJim
AustrianJim's picture

Call me when they do some serious Treasury dumping.

Mon, 12/15/2014 - 19:11 | 5555767 ArtOfLife
ArtOfLife's picture
http://www.treasury.gov/ticdata/Publish/mfh.txt
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.  
Tue, 12/16/2014 - 07:30 | 5557225 Monty Burns
Monty Burns's picture

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.

Mon, 12/15/2014 - 19:18 | 5555795 foxmuldar
foxmuldar's picture

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. 

Mon, 12/15/2014 - 19:18 | 5555796 Republi-Ken
Republi-Ken's picture

AND 

CHUNA and RUSSKIES MISSED A FRIGGIN BIG CAP GAIN

UST 2.35% to 2.12% DUH!

So they made a bad decision. DUH! 

Mon, 12/15/2014 - 21:32 | 5556319 grekko
grekko's picture

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.

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