Nov 17, 2016

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $375 Billion In US Paper - Nov 16, 2016


It is official: Trump or no Trump, foreign central banks, SWFs and virtually every other official institution in possession of US paper, and as of this month, private investors too, are liquidating their Treasury holdings at a record pace.

One month ago, when we last looked at the Fed's update of Treasuries held in custody, we noted something troubling: the number had dropped sharply, declining by over $22 billion in one week, one of the the biggest weekly declines since January 2015, pushing the total amount of custodial paper to $2.805 trillion, the lowest since 2012. One month later, we refresh this chart and find that in last week's update, foreign central banks continued their relentless liquidation of US paper held in the Fed's custody account, which tumbled by another $14 billion over the course of a week, pushing the total amount of custodial paper to $2.788 trillion, a new post-2012 low. 


Read more:  http://www.zerohedge.com/news/2016-11-16/saudis-china-dump-treasuries-foreign-central-banks-liquidate-record-375-billion-us-p