Tuesday, January 18, 2011

China Still NOT Selling Treasuries

Back in February of last year I detailed that China was NOT selling Treasuries when the "experts" in the media said they were. TIC December 2009 data initially stated Chinese holdings totalled a bit more than $700 billion, down from summer '09 levels. I made the case that these purchases were actually being made through the United Kingdom (more here). They were. The result is that China's December 2009 holdings were revised upward by $200 billion.

"Experts" in the media would have learned their lesson by now right?

To the Financial Times:

China and Russia were the major sellers of US Treasuries in November as bond yields surged sharply higher that month, according to the latest government data.

The US Treasury reported on Tuesday that private investors sought more dollar-denominated stocks and bonds in November than October, offsetting record sales by foreign governments.

The FT was joined by the WSJ, CNN, and Marketwatch amongst others getting it wrong. Bloomberg got it right here, but wrong here.


1) Journalist do not read EconomPic
2) China is NOT selling Treasuries

Source: Treasury


  1. You know mainstream journalists can't read! Geez.

  2. Details certainly get in the way of a good story ... IF I'm reading this table (http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/snetus.txt ) from UST correctly (and I believe I am) it appears that China was a BUYER of coupons (to the tune of about $9.5bil) and SO the apparent sales were all Bills - just over $21bil. Suits me just fine to see China engaging in a flattening trade given record steepness we're seeing these days. On second thought, it probably isn't gonna catch a h'line any time soon and SO scratch this response. Where's that clicker. BACK to CNBC.

  3. China will start selling Treasuries when it starts letting the Yuan appreciate.

    Two sides of the same coin.

  4. I read econompic...therefore I am not a journalist.

    It is true. I am not a journalist.

  5. SPECTRE of DeflationJanuary 21, 2011 at 6:21 AM

    We bought 75% of our own paper last year, and the FED now holds more paper than China and Japan. We would simply step in to buy more of our own paper while demonizing China for doing what is in it's own self interest. Bring forth more bread and circus!

    When this all implodes, which it must, China will have it's own problems to worry about at any rate.