Japan Extends Lead Over China As Biggest Foreign Holder Of US Treasurys

Japan Extends Lead Over China As Biggest Foreign Holder Of US Treasurys

Japan resumed its buying of USTs in October (the latest TIC data), while China continued selling…

Source: Bloomberg

China was the second-largest foreign creditor in October, with $1.10 trillion in holdings. That’s the smallest amount since April 2017.

After overtaking China in June, Japan’s holdings of U.S. notes, bills and bonds increased to $1.17 trillion in October from $1.15 trillion a month earlier and are now back near the widest gap to China’s holdings since July 2008…

Source: Bloomberg

Notably, Belgium (often considered a proxy for Chinese offshore holdings), Cayman Islands (hedge funds), and the Saudis all dumped major chunks of their Treasury holdings in October…

  • Belgium holds $208.3b of U.S. Treasuries, a decrease of $10b from prior month

  • Cayman Islands hold $225.1b, a decrease of $13.6b from last month

  • Saudi Arabia holds $178.9b, a decrease of $2.6b from last month

Finally, we note that only Agency debt was bid by foreign entities in October…

  • $16.8BN in Treasury sales

  • $32BN in Agency purchases

  • $6.6BN in Corporate Bond sales

  • $4.3BN in Corporate Stock sales

Overall foreign holdings of U.S. debt climbed $1.6 billion to $6.78 trillion in October, but foreign central banks have sold TSYs for 14 consecutive months…

…a total of $348BN in the LTM


Tyler Durden

Mon, 12/16/2019 – 16:16

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.