Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

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MachineGhost
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Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by MachineGhost » Thu Oct 08, 2015 8:15 pm

[quote=http://www.wsj.com/articles/once-the-bi ... 1444196065]Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.
                   
Sales by China, Russia, Brazil, and Taiwan are the latest signs of the emerging-markets slowdown that is threatening to spill over into the U.S. economy. Previously, all four were large purchasers of U.S. debt.

Foreign official net sales of U.S. Treasury debt maturing in at least a year hit $123 billion in the 12 months ended in July, said Torsten Slok, chief international economist at Deutsche Bank Securities, citing Treasury Department data. It was the biggest decline since data started to be collected in 1978. A year earlier, foreign central banks purchased $27 billion of U.S. notes and bonds.[/quote]
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Re: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by dualstow » Thu Oct 08, 2015 8:59 pm

I vote for "slowdown" for the financial word of the year.
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AdamA
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Re: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by AdamA » Fri Oct 09, 2015 12:21 pm

I think it will matter about as much as the S&P downgrade a few years ago.
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Re: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by barrett » Fri Oct 09, 2015 3:19 pm

Hmm. These figures are worth a glance:

https://www.treasury.gov/ticdata/Publish/mfh.txt

China and Japan hold less US debt than they did a year ago and some countries hold more. It's a massive market with about half of the treasuries being held by foreigners. $123 billion is a drop in the bucket. The headline might just as well be "MARKET ACTIVITY FOR US TREASURIES ABOUT WHAT ONE WOULD EXPECT!!!"
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Re: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by MachineGhost » Fri Oct 09, 2015 3:45 pm

What's up with Belgium???
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Re: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by buddtholomew » Fri Oct 09, 2015 3:54 pm

barrett wrote: Hmm. These figures are worth a glance:

https://www.treasury.gov/ticdata/Publish/mfh.txt

China and Japan hold less US debt than they did a year ago and some countries hold more. It's a massive market with about half of the treasuries being held by foreigners. $123 billion is a drop in the bucket. The headline might just as well be "MARKET ACTIVITY FOR US TREASURIES ABOUT WHAT ONE WOULD EXPECT!!!"
I need to see August and September 2015 before rendering any judgement. We saw declines in equities AND treasuries over this time frame and the theory was Chinese selling US debt.
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Re: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by barrett » Fri Oct 09, 2015 4:49 pm

MachineGhost wrote: What's up with Belgium???
China and Belgium have some funky relationship with regard to US treasuries. The Chinese dump treasuries via Belgium. Hopefully this link will add to the confusion:

http://www.zerohedge.com/news/2015-07-1 ... hs-belgium

buddtholomew wrote: I need to see August and September 2015 before rendering any judgement. We saw declines in equities AND treasuries over this time frame and the theory was Chinese selling US debt.
Agreed. I guess my feeling is that regardless of what the Chinese are doing, there will still be pretty strong demand for US Treasuries inasmuch as they seem to be the best option out there.
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Re: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Post by Kbg » Fri Oct 09, 2015 5:14 pm

And the dollar has flattened out and the Chinese are trying to get the Yuan into the IMF currency basket...there are no droids here.
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