The Selling Ends: Foreign Central Banks Buy The Most Treasuries In Over Two Years

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies

Over half a year after we first reported last August that foreign official institutions – central banks, sovereign wealth funds and reserve managers – are liquidating US Trasuries in record amounts, a process that only accelerated into last month when official entities sold a record $405 billion in US paper in the LTM period, Bloomberg decided to catch up to the topic with “America’s Biggest Creditors Dump Treasuries in Warning to Trump.”
Well, not so fast, because as we also warned last month, based on more concurrent data from the Fed, showing Treasuries held in custody, the selloff most likely peaked in November, as December was a month in which foreigners were actively buying, not selling Treasuries.
Moments ago, data released by Treasury International Capital confirmed this, when it showed that in December after 12 consecutive months of selling by foreign official institutions amounting to $405 billion, in December the selling finally reversed, and foreign central banks added $18.6 billion in Treasuries, the single biggest monthly purchase of US paper since June of 2014….

This post was published at Zero Hedge on Feb 15, 2017.