Russia Dumps Treasurys For 14 Consecutive Months; China Slashes Holdings To Lowest In Over A Year

Tyler Durden's picture


Today's disappointing TIC report confirmed what Zero Hedge reported back in January, namely the record dumping of Treasurys by foreign entities as tracked by the Fed's custodial account. And while we will spare you the details of the report (found here), two things bear pointing out: the very demonstrative selling of US paper by Russia continues, and is now in its 14th consecutive month (as has been reported here consistently), as total USTs in Putin's possession declined to a fresh multi-year low of $88.4 billion, half of the $176 billion in October 2010. Also confirming that the Asian anti-USD axis is now one which consists of at least Russia and China (and certainly Iran), was the stepwise dump of US paper by Beijing which sold $32 billion in US bonds in December, bringing its total to a new post 2010 low of $1100.7 billion. And lastly, this was not isolated to just these two: in December the grand total of US Treasury holding by foreigners declined from $4.75 trillion to $4.732 trillion. The question then is: just what are China and Russia buying (ahem stockpiling) with all the dollars that are not recycled back into Treasurys?



Total foreign holdings:

As this chart summarizes, total foreign sales were the largest since January 2010.

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Wed, 02/15/2012 - 10:39 | 2161536 GetZeeGold
GetZeeGold's picture



Soooo....things are lookin up!




Wed, 02/15/2012 - 10:45 | 2161590 vast-dom
vast-dom's picture

this is all bullish for treasuries bc.....bc.....bc it is....bc....bc.....Bernank says it's so! Oh and did you hear markets are bullish due to some Chinese words about Greece being such a great bet and all....

Wed, 02/15/2012 - 10:49 | 2161603 Comay Mierda
Comay Mierda's picture

VXX has gone up while SPX has been flat the last few days.  crash is brewing fellas

Wed, 02/15/2012 - 10:52 | 2161618 LawsofPhysics
LawsofPhysics's picture

Maybe, I think we have one more spike in the ViX and dip to go through.  Lots of perfect storms brewing in March.  We'll see.

Wed, 02/15/2012 - 11:12 | 2161687 Dr. Richard Head
Dr. Richard Head's picture

So if China and Russia are not holding US debt, the baby boomer generation is now drawing down on their US debt holding to buy cat food to eat, and the next two generations are dirt broke because they live off of credit and have student loan debt to contend with, that would mean The Bernanke is going to be busy stuffing his banking cabal pockets with all of the new debt issuance needed to rollover the previous debt.  Sounds like fun.  

Beranke is going to need a bigger wallet. 

Wed, 02/15/2012 - 11:16 | 2161737 LawsofPhysics
LawsofPhysics's picture

Ben (and the baby boomers) have been painted into a corner for some time now.  There is a very real cost for creating capital without actually creating any real value or physical assets behind said capital.  Ben has been lying about the ability to "raise rates to fight inflation in 15 minutes".  If rates go up, America is bankrupt as the debt becomes impossible to service.

What will be interesting is when the Federal reserve and all central banks associated with the U.N., IMF and N.A.T.O. hold all the debt for the entire western world and the BRICs call bullshit on the entire thing and demand a new world currency backed by physical assets.  The BRICs continue their purchasing of gold and silver hand over fist and this is the only way I can make sense of it.

energy is going to be a major problem for everyone, but that is another discussion entirely.

Wed, 02/15/2012 - 11:58 | 2161775 hedgeless_horseman
hedgeless_horseman's picture



" is going to be a major problem for everyone, but that is another discussion entirely."

USA's oil imports from Russia going up, and Russia's UST holdings going down is a bad omen for the USA.

Wed, 02/15/2012 - 11:23 | 2161782 Spirit Of Truth
Spirit Of Truth's picture

Why hold bonds of a country you are going to nuke?

Wed, 02/15/2012 - 13:36 | 2162465 matrix2012
matrix2012's picture

Spirit, what a BS !!!

Sounds more like a Spirit Of Warmongering! 

No country will wage a war (incl. nuke war) against the USA, a militaristic imperialist with annual military budget over usd1 trillion, with hundreds if not thousand of military bases around the globe.

The other nations will just be doing the SELF-DEFENSE!

If a destruction ever happens upon the hegemon, the only cause is its own IMPLOSION!


“Civilizations die from suicide, not from murder.” — Arnold Toynbee 

Wed, 02/15/2012 - 14:45 | 2162798 Spirit Of Truth
Spirit Of Truth's picture

You're Toynbee quote is most appropriate.

I just uploaded a video in which J.R. Nyquist tells the blasphemous truth.

I suggest you watch it.

Wed, 02/15/2012 - 12:07 | 2162018 Malachi Constant
Malachi Constant's picture

"Ben and the Babyboomers" sounds like a band from one of banzai7's works.

Wed, 02/15/2012 - 13:33 | 2162454 Kobe Beef
Kobe Beef's picture

I heard they're touring with "Uncle Scam & the Bloodsucking Lobbies"

Wed, 02/15/2012 - 12:45 | 2162209 americanspirit
americanspirit's picture

LOP - I think you've nailed the basic dynamics behind all the smoke and mirrors. Not too sure about B or I's role but R and C are certainly on their way to having the backing for a new world currency cornered in their hands. Game. Set. Match.

And you can bet that the Goldmans and JPMs of the world are already positioning themselves to go with the winners.

Wed, 02/15/2012 - 12:46 | 2162223 grid-b-gone
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Ben says he can begin draining liquidity in 15 minutes.

The problem is the same people waiting for trickle-down will suddenly see their credit seize, leaving only cash-rich banks as a source of credit.    

Inject liquidity at the top, drain it from the bottom. Just like rain from God. Oh, that must be what it means to do God's work.

Finally, I get it.

Thu, 02/16/2012 - 07:35 | 2165225 andrewp111
andrewp111's picture

The overall trade deficit has to be compensated by an equal amount of foreign cash holdings, and the last time I checked the trade deficit wasn't going down very much. If Russia and China are selling Tsys, the dollars don't disappear. Other foreigners must be buying most of them. The only way those dollars are being repatriated is if the US is exporting some commodity, or if the US is exporting other financial assets (like stocks). It would be really ironic if the Chinese were selling Tsys and buying stocks instead.

Wed, 02/15/2012 - 11:12 | 2161716 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Someone want to tell me how my gold is going up while the dollar's going up while oil's going up while stocks are going up while the VIX is going up while bonds are going up?  How is it that everything has greatly gone up in price?  What's the term for that?  Bernanke?  Bernanke???

Wed, 02/15/2012 - 11:18 | 2161740 LawsofPhysics
LawsofPhysics's picture

this is not the decoupling you were looking for, move along

Wed, 02/15/2012 - 11:22 | 2161766 dracos_ghost
dracos_ghost's picture

Hmmm, let me guess. The Fed leaked some bombshell news to their buddies before the 2pm FOMC minutes. Formal (and moot ) QE3 announcement forthcoming?

Wed, 02/15/2012 - 12:30 | 2162145 tekhneek
tekhneek's picture

Yep, never stopped printing though actually so QE3's done and priced in.


Thu, 02/16/2012 - 07:38 | 2165227 andrewp111
andrewp111's picture

The Banzai7 groundhog already saw QE3.

Wed, 02/15/2012 - 11:25 | 2161795 xela2200
xela2200's picture

Your gold is not going up, and definitively the Dollar is NOT going up neither.

Wed, 02/15/2012 - 12:09 | 2162023 grid-b-gone
grid-b-gone's picture

Investing with a limitless interventionist Fed is like buying a car with painted windows and the hood welded shut.

The Fed is backfilling withdrawals from Russia and China, propping up U.S. equities, discretely printing over IMF and ECB mission gaps, and digitally balancing debt and deficit reports. 

The Fed stands ready to do more of the same for as long as it takes. This is the only public truth being told. 

Wed, 02/15/2012 - 12:43 | 2162207 JPM Hater001
JPM Hater001's picture

Im still trying to figure this out. So where is the money going?  Are they buying out AAPL?

Wed, 02/15/2012 - 21:43 | 2164368 Clockwork Orange
Clockwork Orange's picture

It is options expiration week.  

After 8 weeks of up, up and up, there are a lot of call owners who can now be wiped out.

Just put on your bankster hat, buy your puts, borrow some coin from Uncle Ben at 0%, and slam the shit out of the SPY.

Instant profit.

To all the retailers who just bought into the hyberbolic bankster ponzi rally, sorry.  They need to fleece the options holders now.  

They'll jam it again eventually when it suits them and Uncle Benny.

Wed, 02/15/2012 - 11:10 | 2161711 disabledvet
disabledvet's picture

Well the data doesn't lie: treasuries have rallied and rallied substantially on the news. In other news "Suleiman the Magnificent sends a message to the Bitch of Bulgaria."

Wed, 02/15/2012 - 10:55 | 2161640 tarsubil
tarsubil's picture

Yeap. Japan and the UK are picking up the slack. Since their balance sheets all look positive, don't worry, everything is bone.

Wed, 02/15/2012 - 11:12 | 2161704 Dr. Richard Head
Dr. Richard Head's picture

Ahhhh.  Could that explain the 10 trillion yen "liquidity" injection from yesterday?  My question is does Bernanke-son dress up as a Geisha totake these liquidity injections?  He should be careful those liquidity shots are FUCKashima radioactive.

Calling WilliamBanzia7 - time to make a Bernanke Geisha takinga 10 tril yen liquidity injection?

Wed, 02/15/2012 - 11:07 | 2161692 midtowng
midtowng's picture

I heard that if you sell treasuries to buy gold that this automatically makes you a terrorist.

Wed, 02/15/2012 - 21:44 | 2164381 Clockwork Orange
Clockwork Orange's picture

Either one separately brands you a terrorist.

Do them both together and you are a bonafide future NDAA-inmate.

Wed, 02/15/2012 - 12:01 | 2161987 ilion
ilion's picture

They probably buy US stocks as we speak, as who on hell would want to stick to the worthless bonds and dollars.

Thu, 02/16/2012 - 07:39 | 2165228 andrewp111
andrewp111's picture

That will work out really well for them, won't it?

Wed, 02/15/2012 - 10:37 | 2161540 4realmoney
Wed, 02/15/2012 - 10:38 | 2161543 GeneMarchbanks
GeneMarchbanks's picture


It's never enough.

Wed, 02/15/2012 - 10:38 | 2161546 boogerbently
boogerbently's picture

For every seller, there's a buyer, right?


Wed, 02/15/2012 - 10:44 | 2161583 CapitalistRock
CapitalistRock's picture

Not all treasuries were sold. Some simply matured and were not rolled over. Others were bought with freshly printed dollars from the fed.

You must pay careful attention to who the buyers are and how they were able to buy. This isn't money backed by gold. It's funny money. Easily created digits in a computer.

Wed, 02/15/2012 - 10:58 | 2161652 mayhem_korner
mayhem_korner's picture

For every seller, there's a buyer, right?


Not exactly.  For every sale there is a buyer and seller.  But not every willing seller has a mate, mate.  Least that's what the housing market's been sayin' for 4 years...

Wed, 02/15/2012 - 11:28 | 2161812 xela2200
xela2200's picture

Twist and shout.
Cmon, cmon, cmon, cmon, baby, now
Come on and work it on out.

You know you’re a twisty little girl,
You know you twist so fine.
Come on and twist a little closer, now,
And let me know that you're mine.

Wed, 02/15/2012 - 10:38 | 2161549 Cognitive Dissonance
Cognitive Dissonance's picture

The rats are leaving the ship. What do they know that we do not?

Wed, 02/15/2012 - 10:40 | 2161556 GetZeeGold
GetZeeGold's picture



Oh.....I think we all know.....we just don't want to admit it.



Wed, 02/15/2012 - 10:41 | 2161562 GeneMarchbanks
GeneMarchbanks's picture

That as it turns out, there is a greater fool. His name is _______

Wed, 02/15/2012 - 10:49 | 2161602 Cognitive Dissonance
Cognitive Dissonance's picture

<we join the sparsely attended meeting in the church basement already in progress>

Hi. My name is Cognitive Dissonance and I am a greater fool. It has been 6 months since I last greatly fooled.

Wed, 02/15/2012 - 11:16 | 2161733 disabledvet
disabledvet's picture

Hi, my name is GLD in investments. We bought Apple at 350 just a few months ago. Do we sell bitch or not?

Wed, 02/15/2012 - 11:31 | 2161830 Ned Zeppelin
Ned Zeppelin's picture

+1 CD

Wed, 02/15/2012 - 14:14 | 2162657 _underscore
_underscore's picture

..the looks like - 3rd largest holder of UST - what, for the love of god are the doing??

When you see these charts, the obvious becomes clear - the 2 biggest producers & manufacturers of raw materials & stuff are withdrawing exposure from the dollar, whilst the US's running dog, the UK, is lapping up as much of the excrement falling from its hemorrhagic, sagging & wrinkly imperial arse* as it can.

Sellers: wouldn't be buying gold/silver with the proceeds by any chance?

(PAGE could do with a nice fat inventory when it opens)

* = ass

Wed, 02/15/2012 - 10:50 | 2161609 GMadScientist
GMadScientist's picture

That there are better strategies than financing your soon-to-be enemy in armed conflict?

Wed, 02/15/2012 - 11:07 | 2161689 scatterbrains
scatterbrains's picture

Do you mean bernank financing our enemies by allowing them to dump out all our paper at artificialy high prices on the backs of the tax payers ?


Wed, 02/15/2012 - 11:31 | 2161835 xela2200
xela2200's picture

Bankers have no nation.

Wed, 02/15/2012 - 12:32 | 2162160 Rollerball
Rollerball's picture

+ a million gazillion trillions (with compound interest).

Wed, 02/15/2012 - 10:40 | 2161552 Vincent Vega
Vincent Vega's picture

Not to worry...The Bernank will buy them all.

Wed, 02/15/2012 - 10:39 | 2161554 mayhem_korner
mayhem_korner's picture



When do USTs purchased by banks and underwritten by Ben constitute "channel stuffing"?

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