US Treasuries Have Become Unappetizing for Foreign Central Banks and Governments
Foreign central banks' US Treasury holdings fell to $3.77 trillion in July, their lowest share of marketable US debt since 1993.
Foreign official holdings of US Treasuries declined to $3.77 trillion at market value in July, down from 34% of marketable securities in 2012 to 12.8%. Total foreign holdings shed $50 billion in July to $9.25 trillion, with Japan selling $13 billion and mainland China plus Hong Kong $13 billion in the month. Holdings routed through opaque financial centers such as the UK, Belgium, and the Cayman Islands rose to $3.28 trillion, partly reflecting US hedge funds' leveraged Treasury basis trade.
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From the original article
5 min read at wolfstreet.comBut opaque foreign financial centers pile on Treasuries, often held by US companies and hedge funds. Treasury securities have lost their allure for foreign central banks and governments, whose holdings declined this year and in July dropped to $3. 77 trillion at market value, roughly where they’d been in 2012, according to the Treasury Department’s TIC data.
By iamnothere · wolfstreet.com
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