November - the latest data point - saw surprisingly large net capital inflow to US markets, the biggest since Oct 2018 after two notable outflow months...
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Source: Bloomberg
Overall foreigners dumped $41.5bn in Treasuries but bought everything else...
- Agencies: +$28.3BN
- Corporate Bonds: +$10BN
- Stocks +$10.5BN
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Source: Bloomberg
That is the biggest Treasury sale since Dec 2018...
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While both Japan and China reduced their holdings in November, Japan's lead over China as the biggest foreign holder of USTreasuries has increased...
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Source: Bloomberg
- China holds $1.09t of U.S. Treasuries, a decrease of $12.4b from last month
- Japan sold too: $1.16t, a decrease of $7.2b from last month
As a reminder, in November, China criticized the U.S. for interference in its domestic affairs as President Trump prepared to sign legislation supporting the Hong Kong protesters.
Singapore (+11.8bn) and Ireland (+3.4bn) were the biggest Treasury buyers in November.
Foreign official institutions (central banks, reserve managers, sovereign wealth funds) have sold US TSYs for 15 consecutive months
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...since Oct 2014, foreigners have sold TSYs on 56 of 62 months!!!
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Probably nothing.
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