China Brings US Treasury Holdings To One Year Low, Russia Cuts Treasury Exposure By 50% In One Year

Tyler Durden's picture


Today's TIC data confirmed what Zero Hedge readers have now known for quite some time: namely that foreigners are selling US paper. And while we have used contemporaneous Custody Account data from the Fed to present that in the past 7 weeks foreigners have sold a record amount of bonds, we now get confirmation via TIC that in November the selling continued, especially at the biggest non-Fed holder of US paper, China, which saw its holdings down to $1,132.6 billion, the lowest in the past year. Yet where the selling is just relentless is in Russia, which has quite demonstratively slashed its US Treasury holdings in half in the past year from $176 billion to under $80 billion. Putin is not happy, and is not afraid to show it.



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Wed, 01/18/2012 - 10:22 | 2074071 Gavrikon
Gavrikon's picture

All the more for the Fed to buy.  Where's the prob?


Wed, 01/18/2012 - 10:29 | 2074101 Chief KnocAHoma
Chief KnocAHoma's picture

That Commie bastard! That waste of space country will be selling it's soul to stay together while our children will be taking the USA to new heights.

It is all in the geography... we have two oceans, lots of deep water ports, ample resources, and our military is the best in the world. They are basically land locked to the west, and have no infrastructure.

He may be able to ruff up the dollar in the short term, but he is digging his own grave by doing it.

Wed, 01/18/2012 - 10:32 | 2074111 j0nx
j0nx's picture

Is MDB off today and you are pulling the slack for him? The world is full of zombies and I hate to break it to you but the USA is leading the pack.

Wed, 01/18/2012 - 11:07 | 2074213 spiral_eyes
Wed, 01/18/2012 - 12:50 | 2074597 ratso
ratso's picture

OOOO! should we bee reeeaaally afriad?? I don't think so.

If China and Russia have sold some of our paper and the price hasn't moved, isn't that a good sign?  Yes

Are Russia and China the economic geniuses of our time who have figured out how to fairly value US Treasury debt?  I don't think so.

In sum, Russia and China selling our debt is probably the most bullish indicator that we have seen for a while for the US economy.

Wed, 01/18/2012 - 10:33 | 2074115 end da fed
end da fed's picture

fuck! unload them faster and let's get this ball rolling

Wed, 01/18/2012 - 10:53 | 2074178 AbruptlyKawaii
AbruptlyKawaii's picture

dirty float bitchez

Wed, 01/18/2012 - 10:37 | 2074117 MillionDollarBonus_
MillionDollarBonus_'s picture

Give me a break. Once Americans start saving and putting the squeeze on Chinese exports, the Chinese come back with their tails between their legs and ramp up their treasury holdings. If the world really thinks they can do without the hearty American consumer, they need to think again.

Wed, 01/18/2012 - 10:43 | 2074143 Pladizow
Pladizow's picture

I agree, MDB knows EVERYTHING!

Wed, 01/18/2012 - 10:49 | 2074162 azzhatter
azzhatter's picture

Saving? We don't need no stinking savings  We are America Bennie prints it

Wed, 01/18/2012 - 12:55 | 2074643 pirea
pirea's picture


Wed, 01/18/2012 - 14:01 | 2074961 ZeroChance
ZeroChance's picture

Save what?  There is excess money in American's budgets?  Even if there were, the discipline and act of savings has been on a 30+ year steady decline.  Behavior is going to change overnight from consumption to savings?  Maybe somewhat, where possible, but that is ignoring that the typical American household budget is impacted with all of the recent shocks (bubble burst, extra debt, under-/un-employment, etc.).

So, all of a sudden, the nation is going to save their "excess money" and change behaviors they've had for the majority of their lives.  No doubt austerity is coming to the US (dramatically more than already) and that will impact everyone that sells to us.  But, there will be no active "squeezing" of anyone as if it's our empowered plan or some other fantasy.

Wed, 01/18/2012 - 15:24 | 2075390 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Once Americans start saving

LOL. Americans don't know shit about saving. They are too indoctrinated and/or dumb. Besides save what money? They are broke and buy everything on credit.

Wed, 01/18/2012 - 10:35 | 2074118 dwdollar
dwdollar's picture

You forgot '/sarc'

Wed, 01/18/2012 - 10:52 | 2074168 Slartebartfast
Slartebartfast's picture

Hey Cheif!  How cool is your gig?  Sitting at home getting paid by the CorpGov to post their propaganda on ZH between rounds of Modern Warfare.

Wed, 01/18/2012 - 11:30 | 2074279 ShankyS
ShankyS's picture

Hey - woooo - easy on the MW3 talk there. As for the rest, proceed. 

Wed, 01/18/2012 - 11:59 | 2074379 Chief KnocAHoma
Chief KnocAHoma's picture

Sorry it took me over an hour to respond to you panty waste, but I had a cell phone to one ear and land line the to the other while returning emails.

The movers and shakers like me and MDB are trying to keep the world going and still make time to post her among the social retards.

Wed, 01/18/2012 - 10:54 | 2074176 Manthong
Manthong's picture

Rickards refers to Russia something to the effect of a mineral resources extraction racket run by a mafia.

Regardless, they need US paper only to the extent it supports their racket.

Wed, 01/18/2012 - 13:00 | 2074656 el-greco
el-greco's picture

Hey Chief! Go back to the fifties.

Wed, 01/18/2012 - 16:29 | 2075621 Chief KnocAHoma
Chief KnocAHoma's picture

That was WAY before I was born. By your name I would guess you like it up the ass.

Wed, 01/18/2012 - 10:41 | 2074119 tarsubil
tarsubil's picture

10y is at 1.87. Um, can anyone reconcile these numbers? UK and Japan buying?

Also, is there any way China can dump treasuries without screwing themselves?

Wed, 01/18/2012 - 20:21 | 2076416 UP Forester
UP Forester's picture

1.87% with a real inflation rate of 7-12%?

Sounds like a deal to me.

Wed, 01/18/2012 - 10:45 | 2074138 GOSPLAN HERO
GOSPLAN HERO's picture

(Post under review - Alien and Sedition Acts - U.S. Department of Homeland Security)

Wed, 01/18/2012 - 10:47 | 2074150 Rodolfito
Rodolfito's picture

Before SOPA flies thru to protect their guilty asses, get DeSopa (for firefox) for starters ..

Wed, 01/18/2012 - 12:13 | 2074457 Babushka
Babushka's picture

Me like the link to anti-sopa (workarounds) gigs!!!

The ending recieves both thumbs up: The saddest thing about all of this is that these solutions have been used before. While these workarounds will help you to bypass SOPA, they are the same methods that experts recommend for bypassing the national firewall in China.


God bless USA and China soped all over !!!  and Hillary for promoting Internet freedom!!!

Bend over bitchez stile....

Wed, 01/18/2012 - 10:23 | 2074072 Bob Sacamano
Bob Sacamano's picture

Five or ten years of this data would be helpful for context.

Wed, 01/18/2012 - 10:25 | 2074087 Tyler Durden
Tyler Durden's picture

The Treasury is kind enough to revise it every year to make any long-term analysis impossible

Wed, 01/18/2012 - 10:30 | 2074103 Joe Davola
Joe Davola's picture

Does "revise" mean "manipulate it to fit the current narrative"?

Wed, 01/18/2012 - 15:26 | 2075396 _ConanTheLibert...
_ConanTheLibertarian_'s picture

How dare you imply that! ;-)

Wed, 01/18/2012 - 20:30 | 2076447 UP Forester
UP Forester's picture

Yeah, get in the truck, we've got a nice Summer Camp filled with educational opportunities for you!

Wed, 01/18/2012 - 10:40 | 2074129 Eireann go Brach
Eireann go Brach's picture

Tyler, what % of Treasuries are the Fed buying on average each month right now?

Wed, 01/18/2012 - 20:30 | 2076451 UP Forester
UP Forester's picture

What comes after 100%?

Wed, 01/18/2012 - 10:23 | 2074075 SheepDog-One
SheepDog-One's picture

But Robo insists theyre buying like mad.

Wed, 01/18/2012 - 10:27 | 2074093 Quintus
Quintus's picture

Maybe he means you'd have to be mad to buy them.

Wed, 01/18/2012 - 10:32 | 2074113 tmosley
tmosley's picture

You can't expect him to give a good analysis on the day of his unbirthday party.

Wed, 01/18/2012 - 10:29 | 2074099 Dr. Richard Head
Dr. Richard Head's picture

If you're happy and you know it sell US toilet paper.

If you're happy and you know it sell US toilet paper.

If your'e happy and you know and your gold and silver show it.

If you're happy and you know it sell US toilet paper.

Wed, 01/18/2012 - 10:46 | 2074147 Pladizow
Pladizow's picture

I had a friend named: Richard D. Kaye.

Wed, 01/18/2012 - 10:52 | 2074173 Dr. Richard Head
Dr. Richard Head's picture

His parents are funny. 

Wed, 01/18/2012 - 16:08 | 2075550 Lux Fiat
Lux Fiat's picture

I've heard that if the SHTF, stocks of TP are very good to have around.  Especially since it looks like Sears catalogs will be in short supply....

Wed, 01/18/2012 - 10:37 | 2074122 dwdollar
dwdollar's picture

The idiots are buying like mad. Just like the idiots bought stocks like mad in 2000 and real estate like mad in 2007.

Wed, 01/18/2012 - 10:48 | 2074158 Rodolfito
Rodolfito's picture

He needs to put bread on the table, like the rest of us.

Wed, 01/18/2012 - 10:24 | 2074076 Gadocat99
Gadocat99's picture


Wed, 01/18/2012 - 10:24 | 2074078 GeneMarchbanks
GeneMarchbanks's picture

Ohhh man! The € is in trouble boyeeeee!

Wed, 01/18/2012 - 10:27 | 2074079 847328_3527
847328_3527's picture

"Across all OECD countries, public debt-to-GDP ratios now average 100%. This leaves them all vulnerable. At 5% interest, they have to devote one 20th of their output to servicing old debt. If they have tax revenues of 20% of GDP, it means that a quarter of their revenues must be used to cover the debt. If interest rates don’t rise, they can hold on. But if they are still running deficits larger than their growth rates, the situation is hopeless.

In America, for example, the deficit – in terms of GDP – is increasing at three times the rate of the economy beneath it.

Already, most of the big banks in Europe and America are probably insolvent. Without artificial support from the authorities they would probably be unable to survive a crisis. Trouble is, the authorities have no real support to give. Most of the nations of the developed world are insolvent too. They can shuffle along now… but could not survive a run on their bonds."


From The Daily Reckoning web site by Bill Bonner. He makes a good point.

Wed, 01/18/2012 - 12:10 | 2074436 Chief KnocAHoma
Chief KnocAHoma's picture

Again I believe this is all a matter of improperly valued assets.

Gold, silver, land should all be 3x there current levels. Ass pirate lawyers, actors and public employees should have their incomes reduced by 1/2.

Engineers and technical specialist should have their incomes doubled.

The house of reps should be a part time gig, with very limited campaign funding.

And it would be helpful if we would really think about who we are electing as President. Dancing skills on the Lesbo Ellen show should not count as a qualification.

Wed, 01/18/2012 - 17:33 | 2075830 xela2200
xela2200's picture

Ah an idealist. Yeap, and on paper communism also sounds like the most compassionate system .

The human part of the equation always screws it up. It is not that We have greedy people, it is that the field is unfair. If you make it there is always somebody telling you that your income should be reduced by 1/2. Bring them ALL down, it is not fair. Let's all be equal. /sarc

Wed, 01/18/2012 - 12:11 | 2074444 Ratscam
Ratscam's picture

in reference to your avatar.
costa concordia had 13 decks all given names of European countries.
It's drowning. Talking about synchronicity!

Wed, 01/18/2012 - 10:24 | 2074081 pazmaker
pazmaker's picture

what will we do when there is no one left to buy our toilet paper?

Wed, 01/18/2012 - 10:30 | 2074105 Dr. Richard Head
Dr. Richard Head's picture

Use it to warm the fire place.

Wed, 01/18/2012 - 10:47 | 2074152 Pladizow
Pladizow's picture

Intrinsic Value = BTU's

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