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Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In History

Tyler Durden's picture


Over the weekend, we observed the perplexing sell off of $56 billion in US Treasurys courtesy of weekly disclosure in the Fed's custodial account (source: H.4.1) and speculated if this may be due to an asset rotation, under duress or otherwise, out of bonds and into stocks, to prevent the collapse of the global ponzi (because when the BRICs tell the IMF to boost its bailout capacity you know it is global). We also proposed a far simpler theory: "the dreaded D-day in which foreign official and private investors finally start offloading their $2.7 trillion in Treasurys with impunity (although not with the element of surprise - China has made it abundantly clear it will sell its Treasury holdings, the only question is when), has finally arrived." In hindsight the Occam's Razor should have been applied. Little did we know 5 short days ago just how violent the reaction by China would be (both post and pre-facto) to the Senate decision to propose a law for all out trade warfare with China. Now we know - in the week ended October 12, a further $17.7 billion was "removed" from the Fed's custodial Treasury account, meaning that someone, somewhere is very displeased with US paper, and, far more importantly, what it represents, and wants to make their displeasure heard loud and clear. Whether it is China - we do not know: we may have a better view in two months when the September/October TIC data hits, but even then it will be full of errors, as Direct Bidder purchases by the UK usually end up being assigned to China at the yearly TIC audit. And the sellers know this all too well. What they also know is that over the next few days (or weeks - ZH tends to be a little "aggressive" in its estimates for popular uptake), as soon as the broader population understands what has transpired, concerns about the reserve status of the greenback will start to resurface, precisely as many have been warning. And what has happened is that in six consecutive weeks, foreigners have sold $74 billion, or more government bonds in a sequential period of time than ever before.

So... perhaps it is time to reevaluate US intentions for a trade war with any of its "evil" mercantilist, UST-recycling partners. Unless, of course, they want $74 billion to become $740 billion, and to force the Fed to have no choice but to intervene, only this time not with a duration sterilized procedure, but one where the Fed has to buy everything that China et al are selling.

On the other hand, judging by the traditional reaction of various precious metals to this kind of fiat suicide, perhaps it is not such a bad idea after all...

Total holdings in the Fed's Treasury custodial account and weekly change:

Trailing 6 Week Cumulative Total of custodial account Treasury flows.


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Thu, 10/13/2011 - 23:44 | 1772283 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ok you might think you've got a Congress to sort out all the problems they were elected to do but no. They've failed... miserably

Ok you might think you've got a Senate to sort out all the problems they were elected to do but no. They've failed ...miserably too

Ok you might think you've got a US President to sort out all the problems he was elected, and promised, to but no. He's failed ...fuking miserably

Things are feeling very 1990 USSR.


Thu, 10/13/2011 - 18:22 | 1771471 kaiserhoff
kaiserhoff's picture

Confucius say - Do not fuck with the dragon, for you are crunchy and good with ketchup.

Thu, 10/13/2011 - 18:39 | 1771538 MsCreant
MsCreant's picture

Wassabi, gets rid of that gamey taste.

Fri, 10/14/2011 - 00:49 | 1772451 Prometheus418
Prometheus418's picture

+1 for Wasabi, but only because I had Unagi Eel rolls for dinner tonight.

Fri, 10/14/2011 - 02:18 | 1772574 Yen Cross
Yen Cross's picture

 This is for you darling. Watch out for London...

Thu, 10/13/2011 - 19:33 | 1771475 max2205
max2205's picture

And $RUT IWM go up 22%. Go figure

The outflow must be stealth because the 30 yr has dropped only 10%.

If it wasn't for the fed picking up the bid the 30 yr would be at 5% easy

Wel they said they'd buy the 30 yr. I think they bought more than they planned right now than the plan for 6 months. More to come putting pressure on rates and eventually stocks as they can't compete with higher T yields.

This may be the way the market does the big swan dive. I say 4.50% will be the trigger

Thu, 10/13/2011 - 18:23 | 1771477 RationalPrepper
RationalPrepper's picture

Time for TBT calls or TLT puts?  Or is it still too early?  Or should one just get into TBT shares and await the inevitable?  Rates could go down more with an equities crash and/or OT2...but they can't go much lower and they can't stay there forever.

Thu, 10/13/2011 - 18:40 | 1771542 Pancho Villa
Pancho Villa's picture

US Treasuries are the biggest bubble of them all. And one thing about bubbles is that they just keep going on and on much longer than any rational person would expect. There is no telling when it will pop.

Thu, 10/13/2011 - 18:28 | 1771491 Stockspeare
Stockspeare's picture

The Bond Trade- Done. Going long bonds at this point (other than quick hit and runs) is high risk. The HFT computers do not like it- either should you. No opinion. No sides. Just trading.

Thu, 10/13/2011 - 18:28 | 1771493 gwar5
gwar5's picture

Martin Armsrong reminds us that the US gov wanted to debase the USD 40% in 1985 when they consulted him on the ramifications. This was after Volcker's 17% discount rate hikes. He told them to expect wild volatility and a market crash. They didn't listen. They couldn't comprehend that the Japanese, who had bought all our bonds, were not going to like geting a 40% haircut. NIPPON inc. dumped the bonds and hilarity ensued in October 1987.

Thu, 10/13/2011 - 19:41 | 1771740 DosZap
DosZap's picture


Martin Armstrong, v.s. Ben Bernak............WHO you want on your team?.(LOL)

Those that refuse to study history, are doomed to repeat it.


Thu, 10/13/2011 - 18:29 | 1771498 SheepDog-One
SheepDog-One's picture

So now that we (the FED) the exclusive buyers of our own debt, whats next?

Thu, 10/13/2011 - 18:46 | 1771561 MsCreant
MsCreant's picture

There is the mystical symbol of the snake eating it's own tail, Ouroboros:

However, the image that comes to mind for me is Ben sucking his own...uh...tail. A forever shit loop where even the shit keeps getting thinner and thinner until he dies. This is called buying and eating your own shit.

Thu, 10/13/2011 - 18:47 | 1771571's picture

Dave Lister is the Ouroboros.

Thu, 10/13/2011 - 21:31 | 1771998 CrimsonAvenger
CrimsonAvenger's picture

Great - the one-man Benipede.

Fri, 10/14/2011 - 07:59 | 1772848 MsCreant
MsCreant's picture

You got it!

Thu, 10/13/2011 - 23:47 | 1772291 TheFourthStooge-ing
TheFourthStooge-ing's picture

However, the image that comes to mind for me is Ben sucking his own...uh...tail. A forever shit loop where even the shit keeps getting thinner and thinner until he dies. This is called buying and eating your own shit.

Fractional reserve dining?


Fri, 10/14/2011 - 00:13 | 1772357 Phil Free
Phil Free's picture

There will be blood.


Thu, 10/13/2011 - 18:30 | 1771499 chump666
chump666's picture

China is going to hammer the US markets.  Whether this could be called a trade war is disputable, more likely economic war.  I think they will target the equity markets, freak'em out, dump UST's, then rebuy etc etc.  The may also buy tons of USD's...they may try and crash the US stock markets.

It's going to get dirty.



Thu, 10/13/2011 - 18:50 | 1771580 youngman
youngman's picture

I agree...they also have an army of computer hackers and HFT´s at the ready to disrupt all markets...I think they will...and they will end up with all the gold and silver.....and then just take it we die of our wounds

Thu, 10/13/2011 - 18:50 | 1771581 chump666
chump666's picture

there you go punks:

SHANGHAI (Dow Jones)--China can fight back if a U.S. bill targeting China's management of the yuan becomes law, an academic with China's central bank wrote in a commentary published in the state-run Shanghai Securities News Thursday, after the U.S. Senate earlier approved legislation aiming to crack down on currency manipulation.
China can adjust its foreign exchange structure and reduce both exports and imports to the U.S., said Wang Yong, a professor at the central bank's training institute in Zhengzhou, Henan province. Wang also said China can attract global capital from other countries and regions to invest in China at the same time.
Wang also said China can massively sell U.S. Treasury bonds when the U.S. government's financial conditions are fragile and buy them back afterwards.
   Newspaper website:

Thu, 10/13/2011 - 19:10 | 1771637 divide_by_zero
divide_by_zero's picture

From FT Chinese Army mobilizes cybermilitias, game on although they cleaned us out a couple of years back already with that USB drive virus. Mitsubishi missile division just got cleaned the other day.

Thu, 10/13/2011 - 19:10 | 1771639 Big Ben
Big Ben's picture

I think that real estate sales (actually not sales, more like long term leases) is one of the major sources of income for the Chinese government. If the RE market really is cooling there, it might limit the amount of yuan that their government has available for US dollar purchases.

Hard to tell though. In Shanghai earlier this year people pointed out a number of skyscrapers that had been empty for several years. However this may be normal for China as friends have told me that they observed the same thing 20 years ago. I suspect that the government limits the number of new offices and apartments going on the market in order to keep rental rates high. But if the backlog becomes too large, people might stop building at some point. Very difficult to tell what is going on there.

Thu, 10/13/2011 - 19:42 | 1771746 Nobody special
Nobody special's picture

I agree with most of this, but WTF is with buying them back?  Why buy back a liability?

Thu, 10/13/2011 - 21:40 | 1772007 Ned Zeppelin
Ned Zeppelin's picture

While  I would normally agree with you, China cannot afford to have its population lose many, many jobs if Amerika stops buying all the Chinese trinkets.  No, they are bound to our hips and cannot cause us problems, at least without risking tremendous political instability,  

Thu, 10/13/2011 - 18:34 | 1771514 Pancho Villa
Pancho Villa's picture

What?! You mean foreigners governments might not keep buying UST's as US debt soars to $100T and 10 year rates drop to 0.1%? And they might even SELL? Don't those guys understand that it is their DUTY to support SS, Medicare, US wars, banking bailouts, bridges to nowhere, etc.?

Thu, 10/13/2011 - 18:34 | 1771517 Yen Cross
Yen Cross's picture

 Ghost cities!

Thu, 10/13/2011 - 18:35 | 1771523 tim73
tim73's picture

Maybe this is simply the next phase in this crisis, called the 'Shotgun and under the pillow'-phase.

Thu, 10/13/2011 - 18:38 | 1771528 hambone
hambone's picture

@ Rational Prepper - If you buy TBT and are "really" right, good luck on that payday...if the 10yr goes to 4.5% US gov will be kaput (do the simple math of rolling over all debt as the primary buyer @ 4.5% on $15T...this would soon equate to annual interest payments of $700B on tax income of $2T.  If you are right and believe this, you better get into a physical asset and take delivery cause the paper geme will be no different than monopoly if you are right!?!

Thu, 10/13/2011 - 18:36 | 1771531 Corn1945
Corn1945's picture

This is a smart move by China (or anyone else that holds US Treasuries). Get that money into real goods: land, gold, silver, copper, aluminum, mines, oil, etc. Anything you can touch with your hands.

Because there is a nearly infinite issuance of this crap coming...

Thu, 10/13/2011 - 18:55 | 1771592 legal eagle
legal eagle's picture

I agree, I will start with Erin Burnett, I could touch her with my hands.

Thu, 10/13/2011 - 18:38 | 1771536 Catullus
Catullus's picture

China? Ha.

This is a slow motion bank run.

Thu, 10/13/2011 - 18:43 | 1771541 Everybodys All ...
Everybodys All American's picture

I don't think we are far from the time of which every American in a retirement plan will be forced to buy US Treasuries to support the mess er ponzi. Either that or we are about to witness a market crash which will have everyone gladly buying Treasuries.

Thu, 10/13/2011 - 19:41 | 1771744 buzzsaw99
buzzsaw99's picture

they have been trying for years to get people out of treasuries and into garbage.

Thu, 10/13/2011 - 22:11 | 1772066 centerline
centerline's picture

And doing a pretty good job.  Too many funds REQUIRE obscene returns just to stay solvent.  So, rather than choosing risk profile based on duration and yield, duration and yield requirements are now forcing risk.  Yeah, it's going to end well.  LOL.

Thu, 10/13/2011 - 23:56 | 1772315 TheFourthStooge-ing
TheFourthStooge-ing's picture

they have been trying for years to get people out of treasuries and into garbage.

Won't you buy, buy some garbage?

Garbage can make you feel so large,

Put two cars in your garage.


Thu, 10/13/2011 - 20:54 | 1771925 SystemsGuy
SystemsGuy's picture

You mean they haven't already? What do you think QEn and the Twist are all about?

Thu, 10/13/2011 - 18:40 | 1771543 Schmuck Raker
Schmuck Raker's picture

How lovely it would be for The Fed, and not China, to be left holding the US National Debt Bag when the US defaults.

Thu, 10/13/2011 - 19:47 | 1771772 DosZap
DosZap's picture

Schmuck Raker

How lovely it would be for The Fed, and not China, to be left holding the US National Debt Bag when the US defaults.


Oh, we will, and more.WAY more.

Thu, 10/13/2011 - 18:51 | 1771584 Voodoo-economist
Voodoo-economist's picture

At these price levels i would sell too

Thu, 10/13/2011 - 18:56 | 1771594 Everybodys All ...
Everybodys All American's picture

If anyone wonders what kind of an asshole policy Bernanke has created just witness the US Treasuries right here and right now. Who in there right mind would buy these notes paying so little with so much risk. US Treasuries used to be considered nearly risk free.

Now, tell me how this will end well and I will listen but I know how this ordinarily ends and it is not going to be pretty in my opinion. I've been saying for a long time like Gross at PIMCO as well as others that is would eventually collapse and we are about to see it. The rock and hard place economy that Bernanke has placed us all with his crazy Fed policy is getting real close to being pushed over the cliff.

Thu, 10/13/2011 - 19:03 | 1771620 MsCreant
MsCreant's picture

For you

Everybody Knows, Leonard Cohen

Everybody knows that the dice are loaded 
Everybody rolls with their fingers crossed 
Everybody knows that the war is over 
Everybody knows the good guys lost 
Everybody knows the fight was fixed 
The poor stay poor, the rich get rich 
That's how it goes 
Everybody knows 
Everybody knows that the boat is leaking 
Everybody knows that the captain lied 
Everybody got this broken feeling 
Like their father or their dog just died 

Everybody talking to their pockets 
Everybody wants a box of chocolates 
And a long stem rose 
Everybody knows 

Everybody knows that you love me baby 
Everybody knows that you really do 
Everybody knows that you've been faithful 
Ah give or take a night or two 
Everybody knows you've been discreet 
But there were so many people you just had to meet 
Without your clothes 
And everybody knows 

Everybody knows, everybody knows 
That's how it goes 
Everybody knows 

Everybody knows, everybody knows 
That's how it goes 
Everybody knows 

And everybody knows that it's now or never 
[ From: ]
Everybody knows that it's me or you 
And everybody knows that you live forever 
Ah when you've done a line or two 
Everybody knows the deal is rotten 
Old Black Joe's still pickin' cotton 
For your ribbons and bows 
And everybody knows 

And everybody knows that the Plague is coming 
Everybody knows that it's moving fast 
Everybody knows that the naked man and woman 
Are just a shining artifact of the past 
Everybody knows the scene is dead 
But there's gonna be a meter on your bed 
That will disclose 
What everybody knows 

And everybody knows that you're in trouble 
Everybody knows what you've been through 
From the bloody cross on top of Calvary 
To the beach of Malibu 
Everybody knows it's coming apart 
Take one last look at this Sacred Heart 
Before it blows 
And everybody knows 

Everybody knows, everybody knows 
That's how it goes 
Everybody knows 

Oh everybody knows, everybody knows 
That's how it goes 
Everybody knows 

Everybody knows

Thu, 10/13/2011 - 19:47 | 1771774 jdelano
jdelano's picture

Concrete blonde version is pretty haunting. One of the darkest songs I can think of

Fri, 10/14/2011 - 00:19 | 1772374 Phil Free
Phil Free's picture

Ding! Ding! Ding! Ding!  Yeah it is.  Concrete Blonde .. 'Pump Up The Volume' soundtrack.  Christian Slater.  1990.  Some good pschit.  Everybody knows.

Fri, 10/14/2011 - 01:01 | 1772477 Prometheus418
Prometheus418's picture


No, my friend.  This is dark.

From the album "Fuck World Trade," no less.  FWIW, I generally crank this SOB up to about 170 decibels when it comes up in my playlist at work- just to remind them who runs Bartertown.  Particularly amusing when a tour or audit is rolling through.


Fri, 10/14/2011 - 08:08 | 1772864 MsCreant
MsCreant's picture

Concrete Blonde

I will go with the original myself but appreciate the artistry.

Thu, 10/13/2011 - 19:59 | 1771803 Bastiat
Bastiat's picture

Saw him do that live a couple years back. Great show.

Thu, 10/13/2011 - 20:12 | 1771835 AmericanFUPAcabra
AmericanFUPAcabra's picture

Heard that song for the first time last weekend! Good stuff

Thu, 10/13/2011 - 20:55 | 1771928 Jena
Jena's picture

I haven't heard that in awhile, thanks!

Thu, 10/13/2011 - 18:59 | 1771600 howswave5workin...
howswave5workingforyou's picture

so how do you sell the simulataneous sell off in bunds? i suppose that is due to the imminent collapse of the German balance sheet to support the euro? this website really is a bit silly sometimes. this type of asset rotation in Q4 is quite typical. the money will flow into equities and credit. 

Thu, 10/13/2011 - 19:14 | 1771652 trade the day
trade the day's picture

So bond yields shoot to the moon along with stocks?   That doesn't make sense

Thu, 10/13/2011 - 19:00 | 1771608 howswave5workin...
howswave5workingforyou's picture

US treasuries are probably at a higher price level since the downgrade of US debt. go figure. 

Thu, 10/13/2011 - 19:03 | 1771611 moskov
moskov's picture

Stop blaming China.


US people have the obiligation and duty to buy US treasury. 


Dollar is backed by the US government and Gold is backed by nothing.


Support the US government and Fed! If you don't?you are not an American!



Thu, 10/13/2011 - 19:09 | 1771636 jomama
jomama's picture


Thu, 10/13/2011 - 19:45 | 1771758 Schmuck Raker
Schmuck Raker's picture
  1. OK
  2. No;No
  3. Not so much these days;sure...sure
Thu, 10/13/2011 - 20:36 | 1771879 redwraith
redwraith's picture

You forgot the sarcasm font.

Thu, 10/13/2011 - 20:46 | 1771907 Money 4 Nothing
Money 4 Nothing's picture

Don't you have a boat to bail out?

Fri, 10/14/2011 - 01:08 | 1772499 AustriAnnie
AustriAnnie's picture

Actually I think its your duty to get on that sinking boat.  If you don't you're not Chinese.

Thu, 10/13/2011 - 19:03 | 1771617 slewie the pi-rat
slewie the pi-rat's picture

...plans to occupy the Treasury & the FED have been abandoned due to the huge foreign dump...

oh!  the humanity!

Thu, 10/13/2011 - 19:08 | 1771632 trade the day
trade the day's picture

Tyler how do we play this? When stocks crash everyone piles into gold and treasuries/USD, right? When/if treasuries crash everyone piles into ?????  Physical? Euro? Aud? Or will it be YEN? 

Thu, 10/13/2011 - 19:09 | 1771635 broke433
broke433's picture

It's going into the stock market.

Thu, 10/13/2011 - 19:12 | 1771647 WilliamShatner
WilliamShatner's picture

Fire quantitative easing torpedos!

Fri, 10/14/2011 - 02:49 | 1772598 Yen Cross
Yen Cross's picture

 Scottie, "we're giving her all she's got!"

Thu, 10/13/2011 - 19:27 | 1771673 hambone
hambone's picture

Hold it - if folks are dumping T's and Feds only means to avoid a meltdown is maintain the bid via monetization...this should result in a flight out of the dollar rather than a spike up vs. euro?!?

Is the momentary euro weakening a gag reflex based on Spanish downgrade or are people really dumping T's going to jump from the frying pan of US T's into the oven of devaluation of $'s???

Thu, 10/13/2011 - 19:30 | 1771700 Catullus
Catullus's picture

Enter fed FX swap lines.

Thu, 10/13/2011 - 19:57 | 1771791 buzzsaw99
buzzsaw99's picture

you're going to go cross eyed.

Fri, 10/14/2011 - 00:21 | 1772379 Phil Free
Phil Free's picture

and you'll grow hair on your palms.

Thu, 10/13/2011 - 19:29 | 1771696 Yen Cross
Yen Cross's picture

 I'm  tired of , ( SL550's)

Thu, 10/13/2011 - 19:30 | 1771698 morkov
morkov's picture

hope that's not all america makes cause its the same list produced in bulgaria. LOL

Thu, 10/13/2011 - 19:31 | 1771705 Atomizer
Atomizer's picture


Robert Welch in 1958 predicting Insiders plans to destroy America


The Agenda - Grinding America Down


**Must Read**



As each day goes by, the illusion becomes crystal clear for many. Carry on progs.  At the end of the day when you collectively aided the movement's advancement, you'll still get served the same table scraps. Lemmings will always be lemmings.


The Order Of Death

Fri, 10/14/2011 - 00:37 | 1772423 Yen Cross
Yen Cross's picture

Thanks, that was enlightening.

Thu, 10/13/2011 - 19:33 | 1771714 PulauHantu29
PulauHantu29's picture

Well, you can't eat Treasuries now, can you?

Thu, 10/13/2011 - 19:34 | 1771717 Kina
Kina's picture

Long toilet paper.

Thu, 10/13/2011 - 19:35 | 1771719 MsCreant
MsCreant's picture

It is absurd because it is absurd. Has been for a long time, certainly since 1971, probably since 1913, I am open to it that it has always been absurd because every money system we have had was spawned inside the context of a crisis. Crisis thinking is short term "bandaid," "plug the leaking dyke now," thinking, rather than good thinking. 

Thu, 10/13/2011 - 19:39 | 1771735 Belarus
Belarus's picture

Now we know why China was secretly stashing twice the amount of copper known to anyone. Next up, we'll find out China owns 5 to 10x the amount of Gold and Silver than anyone imagined. They won't have to worry about selling down their paper and worrying about the value of such worthless toilet shit....because their Gold and Silver are going to be going to the fucking moon. I'm guessing China loosens margin restrictions on Gold and Silver in 3.....2.....1......

You know, it looks like it was probably China that was the short on JPM's books all along. What better time for China to pull their shorts off the table now that they're done accumulating all the physical silver they'll ever need. No wonder my channel checks were freaked out about the shear volume of physical silver selling why it was crashing. They were not kidding: the unindentified whale turns out to have been China all along during the PM plunge. 

China: Check. Next: war. Checkmated. It's time to run to the bunker gentelman. Game on. 


Thu, 10/13/2011 - 19:45 | 1771761 DosZap
DosZap's picture


You NEVER have more Silver than you will ever need, and two, why not get all you can of EVERY thing possible while idiots are stilll taking fiat paper, and you have close to 2 Trillion?.

I can think of a lot of things 2T could be used for in a country with 1.2 billion people(invite about 40 million women for one,and offer real reasons to come).LOL

Thu, 10/13/2011 - 19:56 | 1771788 Belarus
Belarus's picture

It took two and a half months for Sprott to get the silver in his Silver Trust. My channel checks tell me that after this massive physical run in silver the invesntories are almost non-existent. So buying crumbs at this point isn't what China is after....they covered their shorts, and at this point, with the largest stash known to mankind, will be fine with silver finally hit north 500. 


Thu, 10/13/2011 - 19:49 | 1771778 long_and_short
long_and_short's picture

Eurozone liquidation to raise cash.

Thu, 10/13/2011 - 20:00 | 1771805 buzzsaw99
buzzsaw99's picture

This is **NOT** surprising. Prices are so high one could make five years worth of coupon on the capital appreciation alone. They sold, I sold, who in the hell didn't sell? Beuller? Beuller?

Thu, 10/13/2011 - 20:03 | 1771816 Quinvarius
Quinvarius's picture

The Fed is going to buy it all up.  They have to.  QE3 will not be televised.

Thu, 10/13/2011 - 20:18 | 1771846 Catullus
Thu, 10/13/2011 - 20:19 | 1771847 Downtoolong
Downtoolong's picture

I’m way ahead of you Lee Po Chang. I started liquidating my Treasury Funds about 3 months ago, moving into short term corps and cash. Does that make me a financial traitor? I suppose it’s possible given I live in North Carolina. At the very least, not living in Manhattan, London, Dubai, or Washington DC puts me in Wall Street’s “who gives a shit about you” category.

Thu, 10/13/2011 - 20:34 | 1771874 Internet Tough Guy
Internet Tough Guy's picture

No one asked the real question; if they are selling T's what are they buying?

Thu, 10/13/2011 - 20:40 | 1771894 Sam Clemons
Sam Clemons's picture

And...who is buying from them?  I think we know that answer though.

Thu, 10/13/2011 - 20:48 | 1771914 buzzsaw99
buzzsaw99's picture


Thu, 10/13/2011 - 20:38 | 1771885 Gyro Gearloose
Gyro Gearloose's picture

That chart comparing Gold and Treasury Securities speaks volumes.  Thanks Tyler!

Thu, 10/13/2011 - 20:39 | 1771890 msmith
msmith's picture
The rebound in equities this week is only going to prove to be temperary for the weeks ahead.  By the end of the year we should be much lower.  - Currently the ES has broken below the short term trend line and appears to have begun the correction.  A look at the GBPUSD shows that we may have significant movement to the downside ahead.
Thu, 10/13/2011 - 20:46 | 1771900 Atomizer
Atomizer's picture

The central planners are using OWS to accelerate 2012 goals.




The supported/funded missions are having trouble isolating new proles to pull a class warfare violence act. All they need is one whack job to go postal. MSM will spin a new terrorist anti-government aggression Breaking News Alert... the new blame game will commence. These games used in the past will be recycled until planners can create another new crisis mode.


It won't take but 5 minutes to poke holes into the planners 'desperation' crisis scheme.


Enjoy the upcoming comedy hour. I don't endorse this sick behavior, the guy in the WH gets his jollies off this.

Thu, 10/13/2011 - 22:13 | 1772071 jomama
jomama's picture

one shot fired from either side will be all it takes.

Thu, 10/13/2011 - 20:46 | 1771908 PulauHantu29
PulauHantu29's picture
"Fed says Foreign Central Bank US debt holdings fall USD 16.4bln to USD 3.402trl in week to Oct. 12"

There's alot more to Dump....$3.402 Trillion

Thu, 10/13/2011 - 20:49 | 1771919 Achaean 5
Achaean 5's picture

The US dollar and $ denominated investments are done. The OWS is here to stay and going nationwide. The revolt against the global fat cat greedy bastards is just getting started here and is not going away. The pseudo safe haven status of the dollar is over, regardless of the hype coming from the idiot drone talking heads on mainstream media. Hard assets is what it will be all about. Silver and gold, long term food sources, non-hybrid, non-gmo seeds, and land.

Thu, 10/13/2011 - 21:10 | 1771958 Atomizer
Atomizer's picture

Keep at it moron. When a government is planning despotism thru depleting your ability to find a job. You get hooked on the government heroin checks that reach your mailbox. The master plan, the government plans on deciding your qualification of work/pay scale. Did you miss this message during skool or while living in your parents basement?

The Superclass

Thu, 10/13/2011 - 20:50 | 1771921 Ultros88
Ultros88's picture

SO!, has all USA manufacturing capability in the form of physical machinery been sent abroad? If not, where have the cashe lay dormant? They must be reactivated in the regions where they both exist as also where there remain the prime physicals used in manufacturing. The United States was the premier creator on the world scene, in the still recent past. We've still got the goods in the ground, some machines near the streets, and the wherewithall to operate at a higher capacity. The worship of shit culture on the TV and Radio must be demolished. There is a reason someone called it a culture of cheese, of greed. There are still people that have nothing to lose and will do whatever it takes to continue living. Break the back of the beast. Don't listen to the voices that scream death and do not heed the call. Blow the horns and let the faithful churches loose. The Cathars rise like a Phoenix! Catharitic rejection of the false way of life will bring us back from the brink. Our bodies may die, but our souls live forever.


BREAK the NINE to 5 ClOcK and return to natural time......................................................... ( O + C ) + *     ||Riddlle me tHIS FaT man||

Fri, 10/14/2011 - 01:23 | 1772528 Prometheus418
Prometheus418's picture

No "our" here.  What, did you think you could ignore reality and then get back in the game by posting on teh interwebs?

I've been in the trenches 18 years, bitchez- and I can tell you that anyone with this mentality "SO!, has all USA manufacturing capability in the form of physical machinery been sent abroad? If not, where have the cashe lay dormant? They must be reactivated in the regions where they both exist as also where there remain the prime physicals used in manufacturing [sic]" is destined for a Hooverville.

Should have taken some shop classes, bud.

Fri, 10/14/2011 - 02:01 | 1772557 Ultros88
Ultros88's picture

I am constantly in the process of teaching myself and learning. I tried to find an apprenticeship to learn to operate machine tools, but lo and behold: the reclining union workers want to keep their cushions to themselves. It must be nice knowing that when SHTF you're the only ones who know how to build things. Looks like maybe you're setting yourselves up to be the new political class?

Why don't you take some of those OWS students away from the (cracked) eggheads who can't make an omelette, instead of whining about the obvious: productive capacity without access to raw materials don't do too much.

Now do it? You'd better, or those eggheads are gonna make some red streets instead of just red flags.

Thu, 10/13/2011 - 21:05 | 1771951 RSDallas
RSDallas's picture

Couldn't this be a European phenomenon?  Why would anyone sell Treasuries right now when every indication points to a further drop in yields?  I will say that bonds are my weak point, but I think I have the fundamentals down.  Lower yield = higher price.  Hoisington is suggesting the that the 30 year hits 2.00% and stays there for an extended period of time ala Japan.  The European banks are running on fumes (if that) and it wouldn't surprise me if they are not all selling everything, including the kitchen sink.  Am I wrong here?

Thu, 10/13/2011 - 21:08 | 1771959 Ultros88
Ultros88's picture

Everybody has lost faith in the body politic. Nothing is coherent any longer. All is degenerating into NOISE. Do you know how to rectify NOIse?

Fri, 10/14/2011 - 00:27 | 1772391 Phil Free
Phil Free's picture

Home Shopping Network?

Fri, 10/14/2011 - 00:42 | 1772434 Ultros88
Ultros88's picture

Depends what you mean by 'shop'.

Thu, 10/13/2011 - 21:05 | 1771952 Thunder Dome
Thunder Dome's picture

This has to some way be bullish.

Thu, 10/13/2011 - 21:21 | 1771977 Ultros88
Ultros88's picture

YeEAH. If YOU know how to do shit.

Thu, 10/13/2011 - 21:13 | 1771966 MFL8240
MFL8240's picture

If ever a country deserved to have the rug pulled from under them to finally wake up to the fuckin clowns in DC, it is the dear old USA.  What a fuckin disgrace to think a man like Hussein Obama could even be considered for the highest job in the land, that a tax cheat would run the Treasury and that a scholar with not practical business experience would run the Fed, notwithstanding that Pelosi, Reid, Schumer, Dodd and Franks, the architects of this disaster never held a job in their life (Plenty on the Right to blame as well).  Give me a break!

Empty out DC, Bring our boys and ladies home, end the fuckin war machine and restart the economic engine after we tell the world FU, eat shit and die with our confetti.  Only then will the US be back on some sort of sustainable course but this will not happen until Obama is replaced by a real American with American values. This daily bushtit has finally gotten to me.

Thu, 10/13/2011 - 21:22 | 1771979 Ultros88
Ultros88's picture

Right On! We can no longer ignore the obvious. Reality stares us in the face and the US populace chases after dreams on the IDIOT box.

Thu, 10/13/2011 - 21:17 | 1771971 RSDallas
RSDallas's picture

I don't know if ZH reported on this earlier, but has anyone seen the Turkish college students hurling eggs at this IMF representative Mark Lewis while he is giving a speech?


Thu, 10/13/2011 - 21:24 | 1771982 Ultros88
Ultros88's picture

Instead of throwing eggs, they should be figuring out what they can do with eggs other than scrambling them. Albumino - Alba Dominae vitam est.

Thu, 10/13/2011 - 21:41 | 1772004 tim73
tim73's picture

This might be solvency AND liquidity crisis. China and India could be crashing and they need cash fast now to solve internal problems. Floods make things even worse for little Asian "tigers", they have to start burning foreign reserves. An anonymous EU official has also said they will give banks only half a year to raise capital.

All these things combined could lead to Mother of all Fire Sales. Thanks to wasting three years, we will face even worse crisis than in 2008.

Thu, 10/13/2011 - 22:15 | 1772075 jimmyjames
jimmyjames's picture

This might be solvency AND liquidity crisis. China and India could be crashing and they need cash fast now to solve internal problems.


Good point-it could very well be another reason for dollar demand-

Thu, 10/13/2011 - 22:25 | 1772088 Atomizer
Atomizer's picture



Property Derivatives


Property Derivatives - Europe and Asia


United Nations - Fundamentals of the Derivative Markets


Agenda 21 For Dummies


1992 - Agenda 21


Its all a fucking game, the FED can buy all the homes and burn them down

ASSHAT Alert | Greenspan – Burn the Homes Down = Low Cost Strategy,


Your getting played by the MSM and United Nations plans. Who is going to be the next dancing with the stars winner? hehehehe

Thu, 10/13/2011 - 22:04 | 1772042 jimmyjames
jimmyjames's picture

Wouldn't the drop off in foreign/China Treasury buying be related to weakening trade?

If the US runs a deficit and China runs a surplus-then China has to do something with those dollars so they buy Treasuries-

Less dollars from exports = less Treasury buying-

If the US does not buy as much junk from China ie: borrowing/shipping dollars then China et al has less need to buy US Treasuries-

There seems to be lots of evidence of diminishing trade over the past few months-

In selling Treauries and accumulating dollars would be dollar bullish ie: dollar demand-

One reason China might want to accumulate dollars is to use in holding the peg of the RMB in place-"devaluation"

Keep in mind the US has blocked outright sales of Ports and Oil companies to foreigners before-

China's plans to buy Unocal was squashed by Congress a few years back-

Saudis and Dubai were blocked from buying Sea Ports in the US-so the opportunity for Foreign dollar holders to ship those dollars back to the US is limited-until the trade balance shifts back positive for the US-



In Long Beach, the second-busiest container port by volume, August imports fell by 14.2 percent from August 2010. While the port has not yet released September volumes, a spokesman, Art Wong, said it expected about a 15 percent drop from September 2010.


Dick Steinke, executive director of the Port of Long Beach, says shipping volumes have posted two consecutive months of declines, and he's anticipating a double-digit drop for September. The last time the port experienced no peak was during the height of the recession in 2009, he says. Before that, the phenomenon was unprecedented.

Thu, 10/13/2011 - 23:01 | 1772171 Stuck on Zero
Stuck on Zero's picture

According to gov reports we're running ever larger deficits against China, the gold price is staying low, dollars are vanishing everywhere, China is not bitching so what gives?  The Feds must be selling gold at a furious rate to absorb all this.

Fri, 10/14/2011 - 00:08 | 1772342 jimmyjames
jimmyjames's picture

According to gov reports we're running ever larger deficits against China, the gold price is staying low, dollars are vanishing everywhere, China is not bitching so what gives?  The Feds must be selling gold at a furious rate to absorb all this


China isn't bitching because in order to maintain their currency peg they must buy USD's and sell RMB-

The trade deficit has been falling-

I don't understand what you mean by selling Gold and absorbing what exactly-

Thu, 10/13/2011 - 22:09 | 1772061 Schmuck Raker
Schmuck Raker's picture

OT-Dexia:Bankers are st00pid

(Yesterdays news, but...Holy Shiite)

Thu, 10/13/2011 - 22:59 | 1772166 Stuck on Zero
Stuck on Zero's picture

No problem.  The Bernank is buying all the world's bas assets.

Thu, 10/13/2011 - 23:06 | 1772180 chump666
Thu, 10/13/2011 - 23:25 | 1772232 Cone of Uncertainty
Cone of Uncertainty's picture

Fuck Greenspan, he's dead to me.

Thu, 10/13/2011 - 23:54 | 1772307 scrappykoala
scrappykoala's picture

Silver Bitchez

I had to do it there was a couple of people that used to say that all the time and I loved it besides Im long on silver so I'll say it again

Silver Bitchez

Fri, 10/14/2011 - 00:32 | 1772406 zorba THE GREEK
zorba THE GREEK's picture

Silver is great. Sooooo much potential. I just got a great deal on a monster box at $1.80 over

spot. It's good to have connections. I bought it for my son who just came into some money.

He said the box was heavier than it looked. When silver was a lot cheaper, I use to get deliveries 

on pallets. I keep it at a depository near my house at a cost of .75% a year. When it goes to 

$200/oz, I going to buy a Greek island and move there. 

Fri, 10/14/2011 - 00:15 | 1772363 Yen Cross
Fri, 10/14/2011 - 01:53 | 1772551 chump666
chump666's picture

* German bankers blast EU capital plan - WSJ

Chaos trade coming back, tight.

Fri, 10/14/2011 - 03:46 | 1772637 rosethorn
rosethorn's picture

Appreciate you bringin this subject up now; TIC has been under the radar for quite a while.  Looking at the detail from the TIC report shows Russia as a big seller.

Fri, 10/14/2011 - 03:49 | 1772638 broke433
broke433's picture

This is bullish, it's flowing into stocks

Fri, 10/14/2011 - 05:15 | 1772676 pacha75
pacha75's picture

Once again, Bill Gross has got the timing right! (again)


Fri, 10/14/2011 - 06:14 | 1772698 nathan1234
nathan1234's picture

If the US Dollar is strong, the best thing would be to sell Treasuries, use these dollars and or convert to their currencies.

After all most know that the US Dollar is no real safe haven and is actually a cesspool of crap. Right now they are playing the game

Fri, 10/14/2011 - 07:31 | 1772795 magne13
magne13's picture

9/21---------> 30yr yield= 3.20%, SP500= 1203, 10yr yield= 1.85%  lets fast forward

10/14--------> 30yr yield= 3.17%, SP500= 1206, 10yr yield= 2.20%

Two highlights, one is the fact that the 10yr back up in yield is 35bp! huge net selling of 10yr securities, flattening of the yield curve, yet bond yields relatively flat since 9/21.  Also of note is the large foreign net sales in treasuires.  Here is the rub and the reality of FEDs operation, it is to smooth the sale of treasuries and a transfer of payment from US taxpayers to foreign bond holders, if the FED did not come in and buy through QE and so on, this would have surely led to a bond rout and the FED would be on the hook for large interest payments they can only print to afford.  In reality the Federal Reserve is bankrupt and can only print money to pay interest for the bonds the treasury issues, considering the initial goal is to lengthen duration in the FED portfolio, which stands now at some 60 months with an average yield in 5yrs of 1% means every year the FED must print new money to pay over 124bln in new net interest.  Principal of course will never be paid and interest payments is all that matters, Keynesians in a way are correct when they say deficits do not matter, because in reality the treasury and our fiat based economy is only concerned about affording interest payments, and when you can't afford interest payments because everyone is a net seller of your bonds, then the only thing you can do to keep the ponzi afloat is print money, print money to buy your own bonds that you issue and print money to pay for the interest you owe your foreign holders.  This is the system that is in place, unfortunately, but don't think for one minute that any of this is going to work to improve the U.S. standard of living, it will not, we offshored that product long ago...

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