FAST FIVE: Foreigners Dump A Record $205BN In US Stocks In Past Year
Led by selling from Belgium (whose Euroclear is often seen as a proxy for China), down $10.1 BN.
…foreign central banks dumped Treasuries for the 5th consecutive month (-$157bn), and 10th of last 11 months (-$252bn).
China and Japan were also modest buyers of USTs.
But the real action was away from the bond market, where TIC data showed that foreigners sold US stocks for a record 10th consecutive month and 12 of the past 13: The aggregate $205 billion sale in the past 12 months, is the largest liquidation of US equities by foreigners on record.
Luckily, global money supply – mostly thanks to China's record credit injection in the first quarter – is holding US equities up for now.