Foreign holdings of US Treasuries declining

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pmbug

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China has been touring the world, buying up natural resources like a plague of locusts. Instead of waging perpetual war, they go in, offer to construct infrastructure, spend money on social reforms.....whatever. Then they buy rights to oil, coal, ores, etc.

All in all, a good business model that we should take note of and copy.
 
The dumping has started. It is just a matter of time before everyone is dumping.

Won't be long before the SHTF big time now that we can no longer support our debt with the help of foreigners.

The printing presses, thats who. Why, there are still pine trees left, are thre not?:rimshot:

Don't need pine trees. There is a surplus of electrons.
 
Sorry, the electrons, ohh yes. The electrons are environmentally friendly, we won`t need to cut these beautiful trees anymore. :cheers:

But don`t worry the Fed will buy all those bonds and bills dumped be these nasty guys who dont share the paper bugs boundless love and trust in paper.

The paper bugs will unleash some form or QE3,4...14...24 whether printing paper or using the environmentally friendly electronic computer entries. Gotta save those trees, right? :rotflmbo:
 
... as of today's H.4.1 update, the outflow has increased by yet another $8 billion to a new all time record of $85 billion, in 6 consecutive weeks, which is also tied for the longest consecutive period of outflows from the Fed's Custody account ever. This week's sale brings the total notional of Treasurys in the Custody account to just $2.66 trillion (down from a record $2.75 trillion) and the same as April of last year. And since the sellers are countries who have traditionally constantly recycled their trade surplus into US paper, this is quite a distrubing development. ...

http://www.zerohedge.com/news/forei...asurys-6-consecutive-weeks-time-get-concerned
 
I'm glad i am not short the TLTs because fundamentally, the short story has been so bad for so long yet somehow, it just wont go down... Eventually it will work but I have no idea when.
 
Today's TIC data confirmed ... that in November the selling continued, especially at the biggest non-Fed holder of US paper, China, which saw its holdings down to $1,132.6 billion, the lowest in the past year. Yet where the selling is just relentless is in Russia, which has quite demonstratively slashed its US Treasury holdings in half in the past year from $176 billion to under $80 billion. ...

More: http://www.zerohedge.com/news/china...one-year-low-russia-cuts-holdings-50-one-year
 
I read that too. It says Russia is dumping them like mad. Apparently Putin is not amused with our monetary policy.
 
I read that too. It says Russia is dumping them like mad. Apparently Putin is not amused with our monetary policy.
He sent a representative of the Russian central bank to the GATA gold rush conference in 2005.
Putin-Gold-Bars.jpg


Putin: IMF Chief Dominique Strauss-Kahn Jailed For Discovering All US Gold is Gone
http://thesantosrepublic.com/2011/0...n-jailed-for-discovering-all-us-gold-is-gone/
 
SA,
I have no doubt that our gold has been sold, or at least subsumed in to the TBTF banks ledgers as swaps. The Fed has sucked this ocuntry dry, and will continue to do so until ALL of the wealth has been taken.
 
I imagine the Fed like a giant vacuum cleaner sucking the real wealth out of the world. Like in the movie Space Balls:

32zt6cj.jpg
 
PMbug, you just made me laugh when I had a mouth full of water. Now I have to clean my fucking keyboard!

Spaceballs.....'ya gotta love it!
 
Now the real question we have to ask is why should we own american coins when we know all this funny business is going on with the bars. It really makes me want to rotate out of them and strictly into Australian/Asian coins.
 
I never thought about it that way Derek.

I will say on the record that I have tested a number of my various rounds and bars with our XRF, and all of them tested at least .999, and some of the ASE's came in a smidge higher purity. i think the guarantee is at least .999 on the rounds. I have a few old rounds from defunct refiners [from back in the late seventies] that were actually .995, .990 and everywhere in between, but all of my modern stuff is spot on. It is interesting to check some of the older quarters and franklin halves as well, because they are not all exactly 90% pure either. They are within a small tolerance, but not exactly 90%
 
I never thought about it that way Derek.

I think it's probably wise to start going away from US coins.

Or at the very least, start getting older coins instead of the newer ones.
 
Or at the very least, start getting older coins instead of the newer ones.

CIRCULATED coins dated 1964 and earlier are probably the safest bet as it was not financially feasible to fake those coins WHEN THEY WERE IN COMMON CIRCULATION. And now, faking them is still not feasible considering their low values as well how do you show circulation wear without showing obvious faking of the coins? Not saying it can't or won't be done, just saying that doing so may cost more than the value gained by faking them.
 
I got curious this morning and checked the Treasury Depts website:

http://ticdata.treasury.gov/Publish/mfh.txt

As of Dec. 2014, Japan was just about to overtake China as the largest foreign owner of treasuries. China has been selling their treasuries slowly and steadily. Russia appears to have bought treasuries in 2013 and then dumped them again in 2014 and are back to around the $80B level again.

Overall foreign holdings increased roughly $350B in 2014. I'm not sure where to find figures for QE/Fed purchases of treasuries to compare like ZH did last year.

Foreign investor selling of U.S. long-term and short-term assets escalated in December, with outflows at their largest since January 2009.
...

http://www.reuters.com/article/2015/02/18/usa-economy-capital-idUSL1N0VS29620150218
 
I read somewhere that tiny little Belgium holds somewhere around a half trillion dollars of US paper. Money laundering anyone?
 
According to the Treasury Dept. (link in last post), as of Dec. 2014, Belgium owned the 3rd largest position with $335.4B. That's ~$46B down from what they had in March 2014.
 
...
Just a day after President Donald Trump’s much-maligned meeting in Helsinki with Russian President Vladimir Putin, a monthly report from the Treasury Department showed that Russia is no longer considered a “major foreign holder” of U.S. government securities. That’s because in the two months through May 31, the nation’s Treasuries hoard plummeted to just $14.9 billion from $96.1 billion. The threshold to be considered a major holder is $30 billion. There are 33 of them.

Such an aggressive reduction is not normal. To put the $81.2 billion decline into context, the most Japan has ever cut back in a two-month stretch is $47.8 billion. China, the largest foreign owner of Treasuries, has scaled back to a similar extent on occasion, but it was a mere fraction of its total. For Russia, once a top-10 holder, this looks like a full-scale liquidation. Since the start of 2017, no country’s holdings have fallen more, either on an absolute or percentage basis.
...

https://www.bloomberg.com/view/articles/2018-07-19/russia-s-mysterious-exodus-from-treasury-market
 
A worrying sign of inversion in the U.S. Treasury bond curve is dulling the appeal of the developed world’s highest-yielding bond market for foreign investors.

Overseas investors are reviewing their investments or shunning Treasuries as rates at the short end rise above those at the longer end and make it unprofitable for holders of these bonds to hedge their currency risks.
...

More: https://www.reuters.com/article/us-...es-as-curve-threatens-to-invert-idUSKBN1OA0J6

That article is mainly talking about non-government actors, but it still could be significant.
 
The two biggest foreign holders of America’s sovereign debt pared their holdings in October, according to the latest data released by the US Treasury Department. Foreign holdings of US Treasuries have fallen to a one year low.

China’s holdings of notes, bills and bonds fell to $1.14 trillion in October compared to $1.15 trillion in the previous month, marking the lowest level since May 2017. The world’s second-largest economy had been slashing its holdings for a fifth consecutive month.
Read more

Japan seems to have followed the lead. The second biggest holder of the US state-issued bonds cut its share to $1.018 trillion against $1.028 trillion in September, marking the third consecutive month of reduction.
...
All in all, foreign holdings of Treasury securities fell by more than $60 billion, marking the largest monthly decline since November 2016. An extensive decline in foreign demand for US government securities has recently become a hot issue as Washington is increasing issuance of debt. It has caused concerns that the declining number of overseas investors might put upward pressure on US interest rates.

https://www.rt.com/business/446761-us-treasury-china-cut-lowest/
 
The U.S. Treasury on Wednesday saw the weakest demand for its benchmark 10-year note in a decade, illustrating the diminishing appetite among some investors to accept current yields.
...
Foreign investors, led by China and Japan, have accounted for a smaller and smaller share of American government debt outstanding. And the Federal Reserve, for now, continues to trim its holdings. That’s put the onus on domestic U.S. investors, at a time when 10-year yields are little more than three-month ones.
...
While there was some speculation that rising U.S.-China trade tensions could see Chinese buyers holding off at the auction, there was no obvious sign of that. Indirect bidders, the category that includes foreign and international monetary authorities placing bids through the New York Fed, took 53.3% of the sale, the least since April 2018. But direct bidders, “widely understood to be mostly driven by China,” according to Thomas Simons, an economist at Jefferies, took a near-average share.

Even so, the broader share of foreign ownership of Treasuries has steadily dropped over time, to little more than one-third as of the end of 2018, according to data compiled by Bloomberg. A decade before, it was more than 44 percent. As a result, last year saw U.S. funds “absorbing the largest amount of domestic securities on record,” Guillermo Tolosa, an economic adviser to Oxford Economics Ltd. who analyzes global capital flows, wrote in a May 2 note.
...

More: https://www.bloomberg.com/news/arti...asonals-and-trade-trip-up-u-s-10-year-auction
 
Belgium takes a deep breath .............. and 'buys' whatever no one else will

A massive reason for England to leave the E.U. I reckon
 
China’s holdings of U.S. Treasuries dipped in May to the lowest in two years amid an escalation of the trade war between the world’s two largest economies.

The Asian nation’s pile of notes, bills and bonds fell by $2.8 billion to $1.11 trillion, according to Treasury Department data released Tuesday in Washington. It was the third straight month of declines and left the nation’s holdings the smallest since May 2017.

China remained the U.S.’s biggest foreign creditor. Japan was next, with $1.1 trillion, up by $37 billion from a month earlier, which was the biggest gain since 2013. The $9.2 billion gap between the two nations’ holdings was also the smallest since Japan was last the largest U.S. foreign creditor two years ago.

Overall, U.S. Treasury holdings by foreigners hit a new high, rising to $6.54 trillion. The previous record of $6.47 trillion was hit in March.
...

https://www.bloomberg.com/news/arti...oldings-extend-drop-amid-trade-war-escalation

Japan carrying the water later it seems.
 
Foreign holdings of Treasuries slumped in March by the most this century as pandemic-related global market turmoil sent U.S. debt yields plunging to record lows and volatility surged.

Total foreign ownership of Treasuries dropped $256.6 billion to $6.81 trillion, according to a report from the U.S. government released Friday. That’s the biggest drop in data stretching back to early 2000.
...
“The countries which saw the biggest outflows in their holdings were Saudi Arabia, Brazil, India -- emerging market countries that were seeing large capital outflows,” said BMO Capital Markets Strategist Jon Hill. “It makes sense that they would have to sell Treasuries to defend their currencies at a moment like that.”
...
Saudi holdings fell sharply, by $25.3 billion to $159.1 billion, a two-year low. And the totals of Japan and China are each still more than the combined totals of the next-largest holders, the U.K., Brazil, and Ireland.

The value of Japan’s holdings rose by $3.4 billion to $1.27 trillion, while those of China -- the second-largest holder -- sank $10.7 billion in March to $1.08 trillion.
...

https://www.bloomberg.com/news/arti...drop-in-foreigners-treasury-pile-this-century

For context, this occurred as the Fed initiated $450B in swap lines and a FIMA Repo Facility (see posts 561 and 567 in the link below) that were designed to help foreign countries/central banks avoid selling Treasuries on the open market.

https://www.pmbug.com/forum/f13/tin...lity-total-perspective-vortex-75/index29.html
 
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