Foreign Cen Banks Continue To Dump Coupon Treasuries

by macromon

2022.11.20

If you are not watching this space, you won’t know what hits you when it hits you. 

Central banks, both the Fed and foreign, have morphed from the largest buyers of Treasury notes and bonds over the past two decades into the largest net sellers.

Japan and China Biggest Monthly Treasury Dump On Record

Japan and China, both private investors and central banks, sold $118 billion of Treasury notes and bonds in September, their largest combined monthly dump on record, which confirms our suspicions from a September post,

We also have no doubt Japan’s holdings are down from the latest observation in July. – GMM,  Sep 29th

As of the end of September, the Japanese have sold $114 billion in coupon Treasuries since July, 9.2 percent of their holdings, and $208 billion from Japan’s peak holdings of $1.33 trillion in November 2021, down 15.7 percent.