Wednesday, February 15, 2012

Rats leaving a sinking ship as both Russia and China dump US Treasuries

Russia and China are two major holders of US debt instruments, but perhaps not for long.  New data is showing that Russia has been selling vs buying US Treasuries now for 14 straight months, and China, which is the second largest holder of US debt paper only to the Federal Reserve, has cut its exposure to their lowest point in a year.

Think the sovereign nations who hold interests in the Middle East don't know what is coming for America?

Today's disappointing TIC report confirmed what Zero Hedge reported back in January, namely the record dumping of Treasurys by foreign entities. And while we will spare you the details of the report (found here), two things bear pointing out: the very demonstrative selling of US paper by Russia continues, and is now in its 14th consecutive month (as has been reported here consistently), as total USTs in Putin's possession declined to a fresh multi-year low of $88.4 billion, half of the $176 billion in October 2010. Also confirming that the Asian anti-USD axis is now one which consists of at least Russia and China (and certainly Iran), was the stepwise dump of US paper by Beijing which sold $32 billion in US bonds in December, bringing its total to a new post 2010 low of $1100.7 billion. - Zerohedge



Charts courtesy of Zerohedge

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