Japan Dumps Most Treasuries In History As Israel's 2019 Buying Spree Continues

After plunging in August (US foreign net transactions saw a $41 billion outflow - the biggest monthly outflow since Dec 2018), September data showed a notable $49.47 billion rebound in flows...

Source: Bloomberg

Only Treasuries saw net selling

  • Foreign net selling of Treasuries at $34.3b

  • Foreign net buying of equities at $8.8b

  • Foreign net buying of corporate debt at $14.9b

  • Foreign net buying of agency debt at $26b

Source: Bloomberg

Rather notably Japan, after buying the most Treasuries since 2013 in August, dumped $28.9 billion in September - its biggest monthly cut in Treasury reserves ever...

Source: Bloomberg

China dumped Treasuries for the sixth month in the last seven to its lowest level of holdings since May 2017...

Source: Bloomberg

On the buy-side, little old Luxembourg has seen the biggest 2-month buying of Treasuries since August 2011 to a new record high...

Source: Bloomberg

And finally, we note that Israel continues to be an active buyer of US bonds (buying for the fifth of the last six months to a new record high)...

Source: Bloomberg

...quid pro quo?

The trend continues - albeit with a slowdown in the last month or two - as Treasury holdings tumble worldwide, gold reserves have been rising...

Source: Bloomberg