Thursday, September 16, 2010

China is NOT Selling Treasuries

Peter Boockvar (via The Big Picture) doesn't read EconomPic:

Within the July TIC data where $61.2b of net US assets were bought by foreigners, above expectations of $47.5b, the Japanese continued to close the gap with China in terms of their holdings of US Treasuries. Japan was the biggest buyer in July, purchasing a net $17.4b and taking their holdings to $821b.

Mainland China (as opposed to Hong Kong where there was net selling in July) bought $3b of Treasuries but only $873mm of it was in notes and bonds with most of it going into short term bills. The net inflow from China follows net selling of a total of $56.5b in the prior two months. Mainland China’s holdings now total $846.7b after peaking at $900.2b in April. Hong Kong’s holdings of US Treasuries peaked in Feb at $152.4b and now total $135.2b.

If he did, he would know that China buys Treasuries through the United Kingdom (and the figures get revised later... see here), thus the picture changes.



Source: Treasury

3 comments:

  1. It gets better, they are getting Japan to buy more! We CAN make all the money we want to!

    ReplyDelete
  2. i think they should give everyone personal printers...

    ReplyDelete
  3. I think so, the right solution. China with together United Kingdom have a good result in July and this score presents better position for next months.

    ReplyDelete