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Foreigners Sold The Most US Stocks On Record In March, China Dumps TSY Holdings To Lowest Since 2010

Tyler Durden's Photo
by Tyler Durden
Monday, May 16, 2022 - 08:14 PM

Bonds were bid and stocks offered globally in March according to the latest TIC data...

  • Foreigners bought $48.8BN in TSYs, down from $75.3BN in Feb

  • Foreigners bought $32.4BN in Agencies, up from $21.3BN in Feb

  • Foreigners bought $33.4BN in LT corporate bonds, up from $20.3BN in Feb

  • Foreigners sold a record $94.3BN in corporate stocks, up from $25.4BN in sales in Feb

In TSYs, divergence between foreign official institutions (central banks, sov wealth funds) , which sold $32.4BN (the biggest drop since March 2020's COVID collapse)...

...and foreign private institutions (investors) who bought $82.2BN...

It seems the world's major foreign official institutions liquidated Treasuries for cash/liquidity as Putin invaded Ukraine, led by a $73.9 billion sale by Japan, and China dumping another $15.2 billion, to its lowest US Treasury holdings level since 2010...

Away from bonds, foreigners sold the most US stocks on record in March at $94.3bn (almost 4x more than the $25.4BN in February, and the most on record)...

On a trailing LTM basis, foreigners sold $180BN in US stocks, just shy of a record hit in late 2018 when the Fed was forced to reverse its tightening...

And finally, as Treasury holdings drop, gold reserves have surged to new record highs...

Source: Bloomberg

And all this as The Fed stops holding up the bond market with its buying and sanctions push some nations to prefer alternative assets to USTs.

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