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Thursday, March 28, 2024

China De-Dollarization Accelerates: Treasury Holdings Near 4-Year Lows

Courtesy of ZeroHedge View original post here.

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

Under the hood, foreigners

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

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…

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…

But the trend is clear…

Is it any wonder the dollar is tumbling?

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