Japan Buys Most Treasuries Since 2013 In August, China Dump Continues

Overall, US foreign net transactions saw a $41 billion outflow - the biggest monthly outflow since Dec 2018...

  • Foreign net selling of Treasuries at $30.5b

  • Foreign net selling of equities at $21b

  • Foreign net selling of corporate debt at $21b

  • Foreign net buying of agency debt at $30.6b

Source: Bloomberg

That outflow is despite a huge buy from Japan... which bought almost $44 billion in US treasuries in August - the most since July 2013...

Source: Bloomberg

But China dumped Treasuries for the fifth month in the last six to its lowest level of holdings since May 2017...

Source: Bloomberg

However, Belgium (often considered a proxy for hiding China's buying) saw Treasury holdings soar $11.8billion to its highest level since April 2015...

Source: Bloomberg

Additionally, Cayman Islands (proxy for hedge funds) holdings of US Treasuries soared by an almost record $17.9 billion in August

Source: Bloomberg

Finally we note that as Treasury holdings tumble worldwide, gold reserves have been soaring...

Source: Bloomberg

Regime change?