After plunging in August (US foreign net transactions saw a $41 billion outflow - the biggest monthly outflow since Dec 2018), September data showed a notable $49.47 billion rebound in flows...
Source: Bloomberg
Only Treasuries saw net selling
Foreign net selling of Treasuries at $34.3b
Foreign net buying of equities at $8.8b
Foreign net buying of corporate debt at $14.9b
Foreign net buying of agency debt at $26b
Source: Bloomberg
Rather notably Japan, after buying the most Treasuries since 2013 in August, dumped $28.9 billion in September - its biggest monthly cut in Treasury reserves ever...
Source: Bloomberg
China dumped Treasuries for the sixth month in the last seven to its lowest level of holdings since May 2017...
Source: Bloomberg
On the buy-side, little old Luxembourg has seen the biggest 2-month buying of Treasuries since August 2011 to a new record high...
Source: Bloomberg
And finally, we note that Israel continues to be an active buyer of US bonds (buying for the fifth of the last six months to a new record high)...
Source: Bloomberg
...quid pro quo?
The trend continues - albeit with a slowdown in the last month or two - as Treasury holdings tumble worldwide, gold reserves have been rising...
Source: Bloomberg
Tyler Durden
Mon, 11/18/2019 - 16:45
