FAST FIVE: Foreigners Dump Record $54BN In Corporate Debt As Japan Treasury Holdings Surge To All Time High
Foreigners Dump Record $54BN In Corporate Debt As Japan Treasury Holdings Surge To All Time High Tyler Durden Wed, 09/16/2020 – 16:36 Foreigners resumed selling long-term US Treasuries in July, offloading $22.8 billion (after buying $28.9BN in June), in yet another spending spree led by foreign official institutions, i.e.
Additionally: Foreign net buying of equities eased to $16 billion in July, from $28.5 billion in June Foreign net buying of agency debt also dipped to $34.4 billion from at $38 billion But the big surprise was the puke in foreign holdings of corporate debt, which plunged by a record $54.3 billion in July, the biggest monthly drop on record, following June's more modest drop of $16.6 billion.
In any case, aside from the record corporate bond liquidation, total foreign holdings were relatively stable and a far cry from the record selling in March and April.
Looking at individual countries, China continued to sell US paper, in July selling another $1 billion and bringing its total to $1.073 trillion, the lowest since April in the latest continuation of China's dumping of US Treasurys.
Some other notable holders included Belgium, whose $211.9bn were a decrease of $6.8b; the Cayman Islands – traditionally a proxy for hedge funds – held $212.9b, a decrease of $9.1b from last month while Saudi Arabia took its $124.6b in TSY holdings $0.3bn from last month.