China Dumps Treasuries For 6th Straight Month, France Hits Record Exposure

As trade wars reached new levels of anger in November, China dumped $17.5 billion of US Treasuries (and was the biggest seller that month). This is the 6th monthly drop in China's Treasury holdings and they are now at their lowest level since May 2017...

Norway, Ireland, and Taiwan was also among the biggest dumpers of US Treasuries in November.

On the flip-side, France (+$22bn) and Japan (+18.1bn) added the most US Treasuries in November...

This is the biggest monthly addition by France ever to its highest exposure ever...

However, China remains the US largest debtholder and a little context to France is worth considering...

In aggregate, only agency debt was net bought in November with Treasuries, stocks, and corporates all sold...

  • Foreign net selling of Treasuries at $9.3b

  • Foreign net selling of equities at $5.6b

  • Foreign net selling of corporate debt at $3.4b

  • Foreign net buying of agency debt at $19.6b

Still, it appears "great friend" Xi is not the same as "great friend" Macron...