Foreign CenBanks Continue To Sell Treasury Securities

As we suspected in our last post on this subject, 

We also have no doubt Japan’s holdings are down from the latest observation in July. – GMM,  Sep 29th

Japan, the country (data is aggregated), sold $34.5 billion of its holdings of U.S. Treasury securities in August.   China holdings of Treasuries are down 26.2 percent from the November 2013 peak of $1.32 trillion to $972 billion in August. 

Central banks have zero price sensitivity to the U.S. bond market, providing, essentially a “free-ride” in financing the U.S. government.  This story is in its last chapter and has major repercussions for all markets. 

This entry was posted in Capital Flows, China, Sovereign Debt. Bookmark the permalink.

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