Here Is The Stunning Reason Why Treasury Yields Blew Out In April

As Trade Wars began, the rest of the world dumped more Treasuries in April than in any month since January 2016...

Hedge funds were buyers (as implied by the rise in holdings from the Cayman Islands)...they added $15,2 billion in April - the most ever...

 

But the biggest selling culprit was not "good friend" China who saw a small $5.799bn reduction in its Treasury holdings in April...

 

And while "Great ally" Japan did dump Treasuries for the 8th month in the last 9 to it lowest holdings since Oct 2011...

 

It was Vladimir Putin that decided to puke the most US Treasuries out of Russia ever, liquidating half, or $47.4 billion, of its US Treasuries in one month, to its lowest holdings since March 2008!

Put another way - Russia just liquidated half its US Treasury holdings in one month!

Source: Treasury

And what happened in April?

Mystery solved! Russia was dumping half of everything it had ($48bn) and yields on the 10Y rose around 35bps.

One can't help but wonder - as the Yuan-denominated oil futures were launched, trade wars were threatened, and as more sanctions were unleashed on Russia - if this wasn't a dress-rehearsal, carefully coordinated with Beijing to field test what would happen if/when China starts to really liquidate.

Comments

. . . _ _ _ . . . Quantify Fri, 06/15/2018 - 19:17 Permalink

From April 2017:

"The more aggressive the Americans are, the sooner they will see the final collapse of the dollar and by getting rid of the dollar this would be the only way for victims of American aggression to stop this onslaught. As soon as we and China dump the dollar, it will be the end of the US’ military might," Sergey Glazyev said in an interview with TASS.

I've posted this before; it isn't like you weren't warned.

In reply to by Quantify

MK ULTRA Alpha tmosley Fri, 06/15/2018 - 23:14 Permalink

$50 billion of $1 trillion is 1/20th of a trillion dollars. The US national debt is over $20 trillion, therefore, $50 billion of the over $20 trillion US national debt is 1/400th of US national debt.

Russian had to lower it's military expenditures because of lower revenues from oil. However, after this across the board cut to the Russian budget, the 2018 budget spending showed a surprise surplus. Not large, but proving Russia is in sound fiscal condition.

I attribute Russia's economic stability to Russian Central Bank president Elvira Nabiullina. During the beginning of the sanctions, Soros style speculative wolf packs began attacking Russia's currency, similar to Soros attacks in South Korea, Malaysia, Indonesia and his most famous attack the bank of England. Russian Central Bank president Nabiullina made the decision to not defend the Ruble. This means, Russia would have had to use all of it's hard currency or raise hard currency by selling assets to buy Rubles to increase the global value of the currency. See, that's what happens, a currency loses value and the country's central bank buys the country's currency with hard currency. She did the opposite and saved Russia, Putin does exactly what she tells him. Not many follow her and the relationship to Putin.

The return of higher hydrocarbon revenues, Putin's new term's plan of a national infrastructure build by diverting military spending to economic security, this and the national campaign to be better Russians, education, productivity and health, these political platforms are exact public consensus, as surveyed in national polls.  This is what the Russian people asked for, peace, greater investment in the nation and it's people. This is not being reported in US media, it's always some confrontational propaganda justifying a war in Eastern Europe.

Trump is coming around to a relationship with Russia and an end to sanctions, a new beginning with new leadership. This is what the Deep State doesn't want, a peaceful relation with Russia. Trump is dismantling every negative fix, legacy, and everything of the Bush II/Obama/Clinton neocon, one world government era. The order for war with Russia was directed by the Bilderberg Group and it's US partner, the Council on Foreign Relations directed by AIPAC and planned and funded in the secret declaration of war in the annual NDAA, National Defense Authorization Acts, since no one reads, there is no reason for debate.

The Deep State is being dismantled.

In reply to by tmosley

finametrics Shillinlikeavillan Sat, 06/16/2018 - 08:25 Permalink

Another transitioning gender-fluid individual unable to understand the ZH crowd. No1 here hates America. This is evidenced by a strong support of the US constitution. What is hated is the (((tribal))) element that subverted this country and everything it stands for. If you let off the testosterone blockers, you might not be able to complete your gender transition, but you will be able to think more clearly. Thx for playing.

In reply to by Shillinlikeavillan

bshirley1968 Central Ohio Sat, 06/16/2018 - 08:50 Permalink

Informative right up to the point where he started blowing the Trump horn. Trumptards always give themselves away.

So Trump is "coming around to Russia"? Is that why he sided with May over the Skripal "incident"? Is that why he approved the confiscation of Russian property in the US and their financial assets? Is that why he kicked out their diplomats? Is that why he continues to send troops and arms to eastern Europe? Is that why he still parrots the "Russians invaded Crimea" meme?

Yeah, let's take a report about Russia dumping treasuries and turn it into a mystical 33D Trump chess strategy. Hey, MK, try taking off those "Trump-colored" glasses. You'll see more clearly.

In reply to by Central Ohio

MK ULTRA Alpha HenryHall Sat, 06/16/2018 - 18:32 Permalink

I was just reporting the latest Trump statements and changes on Russia, like Trump's statement about a Putin Trump summit this summer. This bshirley poster follows me around, cusses at me, and comes up with the wrong angle of attack on my essays each time.

This time he used the anti-Trump card, trying to tie my prediction of peace with his hate of Trump and the US.

He may be an anti-American Canadian, because this is the third time he's attacked an essay and it's always hate for the US.

In reply to by HenryHall

founthead wadalt Sat, 06/16/2018 - 02:51 Permalink

The US treasuries market :
Supply Side - Tax Cuts and Increased spending leading to high Fiscal Deficit, resulting in more than $1.2Tr. in borrowings by the US Govt. (just at the Federal level) per year.
Demand Side -
1. The Fed Reserve starting to unwind its bloated balance sheet of $2.3Tr USTs (plus another $2.1Tr in MBSes)
2. China threatening to unwind its $1.2 Tr position in USTs as part of the looming trade war. The "allies" who traditionally come to the rescue (Swiss,Belgium, Norway, Saudi CBs/Sovereign Funds) have already being doing so, so not sure how much of additional hit will they be willing to take on behalf of the US.
3. But the biggest factor no one is talking about is the US Social Security winddown of the UST purchases. In the previous decades, the working population of the US contributed to Social Security, which far exceeded the payouts made to Retirees/On-the-dole population. Thus about 45% of all USTs offered were taken up by the SS (called non-marketable USTs since they could not be traded on the open market). Now the demographic bomb of retiring Baby-Boomers is ensuring that SS will be doling out more than it receives by 2020! Thus from a Net big purchaser, SS is turning into a Net big Seller of USTs - and this, unlike the Fed, or Chinese case, is totally non-discretionary!!!

So, the end result? Increasing Yields on the USTs. Add increased inflation due to the looming Trade Wars, and maxed-out Debt levels (Public, Corp. and Household) and you have the perfect storm. Watch out for UST 10 Yr yields to cross 3.00% and settle down (with obligatory beer and popcorn) to watch the shit-storm.....

In reply to by wadalt

CatInTheHat Kayman Sat, 06/16/2018 - 11:12 Permalink

We are not a producer and there will NEVER be insourcing of jobs again unless US gets regime change where focus is on productivity and not nation building (COLONIZING for Israhell). Too many multinationals benefitting from cheap labor in CHINA.

Trump tax heist screwed government in REVENUE, hence why tariff placement. Dream on, Trumpster

In reply to by Kayman

Lie_Detector founthead Sat, 06/16/2018 - 14:31 Permalink

It is not about how many "dollars" you have (or receive) but WHAT will those dollars buy. I am seeing it hitting hard right now.

Auto insurance up about 20% this February. Gasoline up by almost 1/3rd, food up easily by 20% this year, and pretty much anything else you can think of. I am retired (forced due to plant closing in 2015)  and my pensions went up 2%. The rent goes up in a few months about DOUBLE what my pensions went up. 

And this all happening while the "dollar" is still the worlds "reserve" currency. Imagine when that benefit goes. The USA will have to pay in real items (gold, silver, oil, natural gas, etc.) for imports. We will have to manufacture in the USA for ourselves as no one else needs our products. Then just in time comes the AI wave with self serve kiosks everywhere, robot everything, no more truck driving jobs (all automated), no taxis, etc. You see where this is heading unless someone puts a halt to it.

Remember Thomas Jefferson's quote that rings so true

"If the American people ever allow private banks
to control the issue of their money,
first by inflation and then by deflation,
the banks and corporations that will
grow up around them (around the banks),
will deprive the people of their property
until their children will wake up homeless
on the continent their fathers conquered."

In reply to by founthead

FBaggins . . . _ _ _ . . . Sat, 06/16/2018 - 10:49 Permalink

The US-led Anglo-Zionist axis has a god complex, which is based on being able to create unlimited amounts of fiat cash out of nothing and forcing other nations to buy it with their own hard earned assets in order to trade their goods.

Putin is the only world leader who has tried to organize opposition to this oppression and that is why our AXIS is trying to destroy him and his nation. People should forget their airy fairy theories about the $40 billion in bond sales. When someone sells their treasuries they usually need the cash. Russia is solvent but likely needs the cash for more military spending.

 

In reply to by . . . _ _ _ . . .

PrayingMantis ClowardPiven2016 Fri, 06/15/2018 - 17:39 Permalink

 

    ... some of the stunning reasons behind “the stunning reason” ...

 

    ... “ ... Russian Gold Reserves Explode; The Long Term Plan to Dethrone King Dollar Continues - Nathan McDonald (22/02/2018) ... “ ... >>> https://www.sprottmoney.com/Blog/russian-gold-reserves-explode-the-long-term-plan-to-dethrone-king-dollar-continues.html ...

 

    ... “ ... Low debt & high reserves: Russia's economic strategy paying off ... “ ...

   ... >>> https://www.rt.com/business/429719-russia-reserves-low-debt/ ...

 

   ... “ ... Russia & China agree to joint gold mining project in Siberia ... “ ... 

      ... >>> https://www.rt.com/business/429830-russia-china-gold-project/ ... 

 

   ... “ ... Russia in talks to build gas pipeline uniting the Korean Peninsula ... “ ... 

       ... >>> https://www.rt.com/business/429832-korea-pipeline-russia-gazprom/ ...

 

   ... and all these without the control of Rothschild’s banksters ... and also explains why there’s non-stop Russia-bashing from all Rothschild-controlled puppets and their media ... and it looks like the BRICS group are getting way ahead of the NATO alliance ...

 

In reply to by ClowardPiven2016