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Foreigners Sell A Record $55.2 Billion In US Treasuries In October
After several months of significant reserves liquidations by China (specifically by its Euroclear proxy "Belgium") which tracked the drop in China's reserves practically tick for tick, in October Chinese+Belgian holdings were virtually unchanged according to the latest TIC data, as China moderated its defense of its sliding currency. Of course, putting this in context still shows a China which has sold $600 billion of US paper since 2014, as this website was first to note over half a year ago.
And while we expect a prompt resumption of Treasury selling in the coming months following China's recent aggressive devaluation of its currency, what was more notable in today's TIC data was the consolidated total change of all foreign US Treasury holdings.
As shown in the chart below, following an increase of $17.4 billion in September, foreign net sales of Treasuries hit an all time high of $55.2 billion, surpassing the previous record of $55.0 billion set in January. In absolute terms, October's total foreign holdings by major holders declined to $6,046.3 trillion the lowest since the summer of 2014.
What is the reason? There are two possible explanations, the first being that foreigners are unloading US paper (ostensibly to domestic accounts) ahead of what they perceive an imminent Fed rate hike which would pressure prices lower, or more likely, the ongoing surge in the dollar and collapse in commodity prices continues to pressures foreign reserve managers to liquidate US Treasury holdings as they scramble to satisfy surging dollar demand domestically and unable to obtain this much needed USD-denominated funding, are selling what US assets they have.
Should this selling continue or accelerate in the coming months and if it has an adverse impact on TSY yields, it may also force the Fed's tightening hand if, as some expect, the liquidation of foreign reserves becomes a self-fulfilling prophecy and leads to a material drop in Treasury prices.
Source: Treasury International Capital
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In the doLlar we trust..
China probably using Treasuries sales and finance construction between Russia pipelines system.
Others selling so to place themselves in the group of rats earlier from sinking ship scurries.
But hey, I could be wrong, they all might on traditional sound investment strategies selling.
And what someone said before somewhere, the fact on the fact sits and the fact whipping.
This is Phoenician! And this is Starpuss! Ja!
And we are here to PUMP YOU UP!
https://localbitcoins.com
In Federal Reserve Notes, not so much.
the belgian bulge has given birth.....to yellen's baby
Transitory. Contained. Bullish.
is the trend our friend?
UST: Biggest bubble in the history of the world.
The US treasury has borrowed more than six quadrillion dollars from foreigners by selling them paper bonds/bills??? At first I thought it was a typo, but apparently not. Imagine what happens when they start dumping them en-masse.
Gold price "surges" $17/oz?
After the first quadrillion, does the rest matter?
so thats what? .03 %?
Pessimissim porn gets clicks.
All this garbage cast me a bundle
Right. All the selling and the interest rate doesn't rise. Fabulous.
Foreigners you say? . . . . . here's Johnny!
He who Dumps first Dumps best.
See Something Dump Something.
Wow...who is buying all those Treasury notes and with what? Is the Fed just printing dollars and buying the notes?
FTD ain't just a Florist.
What if they haven't been secretly tightening at all? Hint: Undisturbed treasury yields.
I think for what ever reason the FED is squeezing China et al to cough up Treasuries. Is it to streailize the impending bond bublle burst? Pre buy the selling?
The US fed is buying every single one of them and stuffing them under "debt that disappers".
If you're holding US/UK Treasuries then you're in deep doo doo. No shit Sherlock!
> If you're holding US/UK Treasuries then you're in deep doo doo.
Not if you sell them now. You will only lose much of your money if you keep holding them.
if you are able to this is close enough to the time you don't want dollars, euros or yen but dollars are the most out of whack right now. it has to go down one way or another. ironically, the dollar may become scarcer as it is needed less so sell your dollars while you still can.
Who's buying if they're selling? Can't sell unless you have a buyer.
> Who's buying if they're selling? Can't sell unless you have a buyer.
The Fed is buying. In unlimited amounts. Through proxies.
And it means a huge boom in exports for the USA thus producing an expanding economy. The only problem will be a growing reluctance to accept USD for imports to the US.
The Fed HAS to buy.
If the Fed stops, the Treasury market will collapse and so will the US Dollar.
There is a third option. They are selling because they have liquidity problems or need extra liquidity.
Everybody says there is a lot of liquidity, but it is all tied in stocks derivatives and bonds, so the influx of liquidity only served the elites and it did not get distributed for needed investments.
A bird in hand is better than 2 in the bush.
America only print money and buy all the good goodies
from rest of the world
It the right time to encash the FD(UST) & consume it
no one know what holds the future
The best would be to sell $ & buy gold, silver, diamonds, platinum , industrial metals & other tangibles such as mines etc