Foreigners Bought A Record Amount Of US Stocks In The Year Ending November, China Restarted Bond-Buying

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by Tyler Durden
Tuesday, Jan 19, 2021 - 04:16 PM

After foreigners bought a record amount of stocks in the last 12 months into October, the latest Treasury International Capital flow data shows November was a massive month for private inflows overall.

Source: Bloomberg

After a record stretch of selling which ended in May 2020, foreign central banks bought US Treasury for 3 consecutive months in Aug, Sept and Oct, the longest stretch of buying since June 2014., but November saw the selling stretch resume, with the biggest selling since April 2020...

Source: Bloomberg

After 5 straight months of selling, China bought $9bn of US Treasuries in November...

Source: Bloomberg

Japan was a seller for the 4th straight month...

Source: Bloomberg

Foreigners bought everything in November... for the first time since Sept 2017

Foreigners bought $9.640BN in TSYs in November, a reversal from their selling of $20.1BN in October.

They doubled down on purchases of Agencies, buying $53.39BN in November after buying $48.9BN in October.

Foreigners bought $867MM in corporate bonds, after selling $21.5BN in October.

Finally, they purchased $61.9BN in equities in November, the 7th consecutive month of purchases (and second biggest month of foreign stock purchases ever)...

Source: Bloomberg

But what really stood out, foreigners bought a record $316 billion in US equities in the LTM period ending November 2020:

Finally, we note that while Treasury holdings overall are rising modestly, but have a long way to go to match the de-dollarization trend seen in gold holdings over the past year...

Source: Bloomberg