March TIC Data Released: Broke UK's Treasury Holdings Go Exponential

The March TIC data was released. We will provide a longer analysis later in the day, but there is just one thing that readers need to know: UK has now gone exponential in its holdings of Treasuries, with total US Treasuries "held" by the UK increasing by $45.5 mbillion over February, or 20%, to a new total of $279 billion. As we now know that the UK is essentially running out of money, to assume that the UK government is buying up our debt when it itself needs to restart QE any minute, is childish at best. Total foreign holdings increased by $134.2 billion to $3,885 billion, with both China and Japan once again buying openly. And since China is now no longer bashful about disclosing its official increase in UST holdings, this leaves the only possibility for the UK ramping up UST purchases as being 1) either a proxy for hedge funds, which however are traditionally represented by Caribbean Banking Centers (which also increased from $144.5 billion to $148.3 billion in March), or 2) a shadow Fed purchasing operation, which also implicates the surge in Direct Bidder interest which we have been focusing on for many months now.

Here is how UK holdings of US Treasuries look like since June 2009. Note the increasingly exponential curve to the chart.

Below is a detailed MOM change in UK holdings:

As for the other two key holders, China and Japan, below is the monthly chart of Chinese LT and ST holdings:

Below is the Month Over Month change in Chinese holdings by category...

And Japan


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