2020年10月19日星期一

Treasury bonds sold

 

Something's wrong! China sold $15.7 billion in U.S. debt in three months, and Japan sold $14.6 billion in one month... Three major creditors collective reduction, what signal?

After three consecutive months of buying, overseas investors began to sell off again. In august alone, japan, china and britain, the top three foreign holders of u.s. debt, sold $24.8 billion.
In the top three U.S. debt holders, China has sold U.S. debt for three consecutive months, totaling $15.7 billion; Britain has reduced its holdings by $26 billion in three months; and Japan, the largest lender, sold $14.6 billion in August alone...
China sold $15.7 billion in U.S. debt for three consecutive months
Foreign investors held $7.083 trillion in U.S. debt in August, down from a record high of $7.097 trillion in July, according to recent Treasury data.
 China, the second-largest creditor, sold $5.4 billion in U.S. debt in August, down to $1.068 trillion. This has been China's three consecutive months of reducing U.S. debt, including June reduction of $9.3 billion, July small reduction of $1 billion.
 Although China remains the second largest creditor in the United States after the reduction, its position of $1.068 trillion has reached a new low since March 2017.
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This year, In January, February and May, China increased its US debt holdings by $8.7 billion, In March and April, they reduced their holdings by $10.7 billion and $8.8 billion respectively.
While reducing U.S. debt, China has increased its investment in Japanese government bonds. Between June and August, China bought 2.2 trillion yen (139.9 billion yuan) of Japanese government bonds, a record quarterly purchase of Japanese bonds, according to the Ministry of Finance.
Countries are selling American debt
As the largest creditor in the United States, Japan reduced its $14.6 billion debt to $1.278 trillion in August, and remained the largest creditor in the United States. That month, the country held 6.3 percent of total U.S. debt, holding a low proportion of innovation.
In July, Japan held a sharp increase of $31.5 billion, a record high of $1.293 trillion. Japan surpassed China as the largest creditor to the United States in June last year and remains so far.
In August, the UK reduced its holdings of US debt by $4.8 billion to $419.9 billion, and its position remains the third largest holder of US debt.
This is the third consecutive month in the UK reduction, including a sharp reduction of $21 billion in July and a small reduction of $200 million in June. The UK increased its holdings by $22.3 billion in May last year, surpassing Brazil as the third largest holder of US debt. .
In addition, in August, Brazil, Canada, Thailand, the Netherlands, Israel, Australia, Spain, Sweden and other countries have reduced their U.S. debt to varying degrees. However, some countries have increased their US debt, including Ireland, Switzerland, Belgium, India, Singapore and France.
The U.S. fiscal deficit is record, and dollar assets are less attractive
 CNmoulding comments: now including our plastic injection molding industry, a large number of export industries still rely on dollars for settlement. If the dollar has really been indiscriminate, international settlement with yen, euro instead of the dollar will happen soon.



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