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Foreigners Sell A Record Amount, Over $100 Billion, Of Treasurys Held By The Fed In Past Week
Zero Hedge ^ | 14 March 2014 | Tyler Durden

Posted on 03/14/2014 7:20:53 AM PDT by Errant

A month ago we reported that according to much delayed TIC data, China had just dumped the second-largest amount of US Treasurys in history. The problem, of course, with this data is that it is stale and very backward looking. For a much better, and up to date, indicator of what foreigners are doing with US Treasurys in near real time, the bond watchers keep track of a less known data series, called "Treasury Securities Held in Custody for Foreign Official and International Accounts" which as the name implies shows what foreigners are doing with their Treasury securities held in custody by the Fed on a weekly basis. So here it goes: in the just reported latest data, for the week ended March 12, Treasurys

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; Extended News; Foreign Affairs; Government
KEYWORDS: dollar; economic; fed; treasurys
"So China. Or Russia, which may be dumping USTs to support the ruble... Or dumping just because."


1 posted on 03/14/2014 7:20:53 AM PDT by Errant
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To: Errant

They’re dumping to show the U.S. who’s boss in Ukraine following Kerry’s limp-wristed threats of economic warfare against Russia.


2 posted on 03/14/2014 7:23:05 AM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
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Gold Fix Study Shows Signs of Decade of Bank Manipulation


3 posted on 03/14/2014 7:23:44 AM PDT by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Timber Rattler

Yep, shot across the bow...


4 posted on 03/14/2014 7:24:26 AM PDT by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

I just read this on ZH. Its good you posted it.

Too bad we can’t get the foreign ownership stats on a real time basis. This would be fascinating to watch over the next week. Might see a lot of dumping, which of course would have significant implications for our own interest rates.


5 posted on 03/14/2014 7:25:11 AM PDT by Starboard
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To: Errant

Testing a potential weapon?


6 posted on 03/14/2014 7:26:29 AM PDT by cdcdawg (Be seeing you...)
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To: Starboard
Might see a lot of dumping...

If the US goes ahead with some form of sanctions next week, you can count on it, IMO.

7 posted on 03/14/2014 7:27:13 AM PDT by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Starboard

Is whom was selling as important as whom was buying? I wonder who bought them, the FED?


8 posted on 03/14/2014 7:28:24 AM PDT by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: cdcdawg

That’s what I’m thinking. Better a snake that rattles than one which strikes without warning.


9 posted on 03/14/2014 7:28:52 AM PDT by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

No worries. Dear leader will direct ERISA to regulate that all retirement plans must invest in treasuries ( for the people’s security of course).


10 posted on 03/14/2014 7:29:46 AM PDT by Rusty0604
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To: Rusty0604

Yep


11 posted on 03/14/2014 7:32:35 AM PDT by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

So who bought??? Treasury cranking up the printing presses? Fed expanding the balance sheet?


12 posted on 03/14/2014 7:40:15 AM PDT by jwalsh07
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To: Timber Rattler

13 posted on 03/14/2014 7:42:02 AM PDT by AngelesCrestHighway
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To: Errant

Getting out of treasuries before the coming Crash of ‘14........................


14 posted on 03/14/2014 7:47:49 AM PDT by Red Badger (LIberal is an oxymoron......................)
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To: Rusty0604

Today’s mid morning briefing:

E.T.: Ah, where are my golf clubs.

Aide: Right here Mr. President.
E.T.: Ah, what does Yellen want?
Aide: Serious problem with the Treasury Holding by Foreign Governments.
E.T.: Just electrons, nothing to worry about, call Andrews, tell em warm up AF1, I have a T Time for 9AM but don’t tell anyone else, just call it being in discussions with world leaders.
Aide: Yes Your Excellency.
E.T.: Anything else of interest.
Aide: Yes, Kerry is on hold from London, the UN General Secretary is also holding, Someone from NASA says he has an urgent matter about some nearby asteroid and...
E.T.: enough, put my call through to Beyonce and tell her we need a white house concert soon, like next week. Meanwhile, out of the way.
Aide: Yes sir, sorry to bother you with these trivialities.


15 posted on 03/14/2014 7:49:53 AM PDT by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: Red Badger
"Getting out of treasuries before the coming Crash of ‘14........................"

And into what? I see it ALL coming down. Equities won't exactly be a safe haven.

16 posted on 03/14/2014 7:53:14 AM PDT by Mich Patriot (PITCH BLACK is the new "transparent")
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To: Mouton

Excellent question. Last December, Belgium (read: Europe) took up the slack when China and Japan stopped buying. Check out this story from Zero Hedge:

http://www.zerohedge.com/news/2014-02-18/china-sells-second-largest-amount-us-treasurys-december-and-guess-who-comes-rescue

Regardless of who comes to the rescue, one thing we know for sure is that the Fed is the buyer of last resort.


17 posted on 03/14/2014 7:53:14 AM PDT by Starboard
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To: jwalsh07

Not directly; they have buyers/banksters that do the dirty deed for them, me thinks.


18 posted on 03/14/2014 7:56:55 AM PDT by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: jwalsh07; Starboard

See #17


19 posted on 03/14/2014 7:58:25 AM PDT by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

China and Russia are dumping US bonds, and Soros is making money on this in some way too.


20 posted on 03/14/2014 8:09:20 AM PDT by Thunder90 (All posts soley represent my own opinion.)
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To: cdcdawg
Testing a potential weapon?

When we devalue our dollar the folks who buy our Treasuries get a guaranteed loss. Until recently safety was a good trade-off... seems that perception has changed.

21 posted on 03/14/2014 8:39:03 AM PDT by GOPJ (From a bellwether to an "oh-whateverrrr" in less than a single news cycle. -freeper Fightin Whitey)
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To: Starboard
Wrong:

a)if the rates climb, the Fed will step in to buy the bonds, pushing rates down.

b)If the rates climb, the value of the bonds will fall and the foreigners will lose too much, which will also moderate the sell-off.

c) The increase in dollar reserves will also tend to drive down interest rates on dollars.

What will happen is that the dollar will fall more relative to the Euro, Yen and Yuan: look for gas prices and other commodity prices denominated in dollars to go up, as foreigners look to recoup their FX losses from the Fed's inflationary policies.

22 posted on 03/14/2014 8:47:51 AM PDT by pierrem15 (Claudius: "Let all the poisons that lurk in the mud hatch out.")
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To: Mich Patriot

And into what? .....................

Rice...................................

23 posted on 03/14/2014 8:49:10 AM PDT by Red Badger (LIberal is an oxymoron......................)
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To: Errant

Hold on to your butts.


24 posted on 03/14/2014 8:54:46 AM PDT by chud
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To: pierrem15

Your response makes no sense. I said there would be significant implications for our own interest rates. You said “wrong” but then acknowledge twice that rates could climb. Very confusing. If you are confident that rates will fall, then you should put your money on it (go short).


25 posted on 03/14/2014 9:16:01 AM PDT by Starboard
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To: Starboard
I simply said if they began to climb, the Fed would intervene to keep them low, plus added some additional factors that would keep them low.

I didn't say they would fall, just that they would not rise (at least not anytime soon).

A smart bond trader could probably make some money on intraday futures trades, but that's about it. I just don't think the Fed will allow the market to move very much at all.

If the sell off continues, you could make money on FX, I would think, because some of the growing dollar reserves would need to be rolled over into local currencies.

26 posted on 03/14/2014 9:23:31 AM PDT by pierrem15 (Claudius: "Let all the poisons that lurk in the mud hatch out.")
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To: Red Badger

I had not idea what your reply would be, but that made me laugh. Not a bad idea either, but the government(s) will eventually grab that too if SHTF. For the greater good, dontcha know.


27 posted on 03/14/2014 9:33:04 AM PDT by Mich Patriot (PITCH BLACK is the new "transparent")
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