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

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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

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

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…

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

Source: Bloomberg

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

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

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…

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

Source: Bloomberg

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

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

Source: Bloomberg

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

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

Source: Bloomberg

Regime change?


Tyler Durden

Wed, 10/16/2019 – 16:18