Some relatively positive news in the latest TIC data shows that the last 12 months purchases of Treasuries by foreign central banks surged by $59 billion to $221.6 billion - its highest since Jan 2019...
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Under the hood, foreigners
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Total Long-Term Treasury Purchases: $22.5BN, sharp reversal from $33BN in sales in August
Purchases of Agencies $46.2BN, highest since Feb 2020
Foreigners sold a total of $28.7BN in corporate bonds, after $2.3BN in purchases in August
Stock purchases by foreigners $38.2BN, up from $26.6BN in August and most since May 2020
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While that is all bright and shiny news for the US Government's massive deficits, one trend continues - China is dedollarizing, dumping more of its Treasury holdings to the lowest since Jan 2017...
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Source: Bloomberg
Other high- (and low-) lights include:
- Japan holds $1.28t, a decrease of $2.2b from last month
- China holds $1.06t of U.S. Treasuries, a decrease of $6.3b from last month
- Belgium holds $218.1b of U.S. Treasuries, an increase of $3.1b from prior month
- Cayman Islands hold $231.6b, an increase of $2.7b from last month
- Saudi Arabia holds $131.2b, an increase of $1.2b from last month
What is more interesting is that foreign official institutions bought for 2nd month in a row, something they haven't done since March 2018...
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But the trend is clear...
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Is it any wonder the dollar is tumbling?
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