China’s Receding Treasury Holdings And 10-Year Yields

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China’s Treasury holdings rose by $9.1 billion month-over-month in December.  This comes in the wake of six consecutive months of contraction during which it sold $194.7 billion worth.  This was the first monthly increase since last May. Coincidentally or not, … Continued

China, Japan Reduce Treasury Holdings, Even As Next President Likely Runs Larger Deficit

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The top two holders of Treasury securities have been cutting back their holdings.  In August, China and Japan respectively held $1.19 trillion and $1.14 trillion.  China’s peaked at $1.32 trillion in November 2013 and Japan’s at $1.24 trillion a year … Continued

Infrastructure Spending Plans High On Optimism But Low On Practicality?

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The two major U.S. presidential candidates share at least one common interest.  Both talk about the need to increase infrastructure spending. Democrat Hillary Clinton has a five-year $275-billion program.  Republican Donald Trump says he would spend at least twice as … Continued

What Could Be Behind Foreigners’ Dumping Of Treasurys In Dec-Jan?

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Back in the middle of December, when the Fed hiked rates for the first time in nine years, the FOMC’s dot plot optimistically forecasted four quarter-point hikes this year. On December 16th – the day the FOMC statement came out … Continued

No, China Is Not Selling U.S. Treasurys, But Foreigners Continue To Shun U.S. Equities

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Back in early August, China engineered a fall in the yuan.  Soon followed investor hand-wringing over whether or not it would be selling its Treasury holdings in order to stabilize the currency.  The Chinese economy is slowing, and capital outflows … Continued