The value of US Treasury securities held by foreigners made another new record high in July 2024

 $8.3385 trillion, but the lunatics on X are saying "everybody's selling".

Grand total net value was up nearly $128 billion compared to June, and nearly $740 billion year over year.

The value of US Treasury securities in foreign hands made a new record high in June 2024 at $8.21 trillion

 

click to expand

The obscenity of US national debt at $34.5 trillion notwithstanding, the value of grand total foreign ownership of it is up almost $529 billion year over year in March 2024 to a record high of . . .

. . . $8.091 trillion.

An almost 7% increase.

Here.

Meanwhile:

Bridgewater Associates founder Ray Dalio told the Financial Times a few days ago that he is concerned the soaring U.S. debt levels will make Treasurys less attractive “particularly from international buyers worried about the US debt picture and possible sanctions.”

So far, that hasn’t been the case: Foreign holdings of U.S. federal debt stood at $8.1 trillion in March, up 7% from a year ago, according to Treasury Department data released Wednesday. Risk-free Treasurys are still seen as an attractive place to park cash, but that could change if the U.S. doesn’t rein in its finances.

On an average monthly basis, yields on all UST peaked for this cycle last October, save for 1Y which peaked last September.

What, me worry?

 

The value of US Treasury securities owned by foreigners increased about $100 billion year over year in May 2023, significantly less than the $300 billion increases seen since 2018

 

click to enlarge

Foreign ownership level of US Treasury securities fell 6.2% year over year in October

 The level contracted to a point approximately last seen in May 2021.

As reported levels in the table are subject to revision in future monthly tables. My graph shows as reported levels in May each year. 

The drop probably does not reflect actual selling, but falling market value of UST because of the bond rout.

It doesn't matter that China has been selling US Treasury securities, world appetite for US denominated debt inexorably rises year after year

 Beijing Dumps $100 Billion Worth Of Treasuries... ^

US Treasury securities remain the cleanest dirty clothes in the laundry and steadily command a bid despite paying little

 

The US 10-year is paying but 1.28% this morning.

Grand total foreign holdings of US Treasury securities in May, 2000-2019

Demand slowed from 2013 as stocks once again got a bid (permanent adoption of Bush tax cuts by Obama and Boehner removed uncertainty), but a flight to safety reappeared in 2019 and 2020. Total was still $6.8 trillion in Mar 2020 even after a big drop from Feb amid currency turmoil, the latest report.

The bid for bonds shows the global economy was already weak last year.

The Wall Street Journal made a big deal of the $85 billion drop in foreign holdings of UST in Sep, nevermind holdings are up $550 billion year over year

Foreign holdings of US Treasuries soared to $6.857 trillion in Aug 2019, up 9% year over year

Foreign holdings of US Treasury securities hit $6.636 trillion in June 2019, driving down yields

Nobody asks why US debt securities are so popular.

People like Jeffrey Snider of Alhambra know why, but nobody listens to him.

Global flight to US safety: Foreign holdings of US Treasury securities soar $105.5 billion month over month, $324 billion year over year

Japan is up year over year $52 billion, the UK $58 billion, Luxembourg $21 billion, the Caymans $30 billion, Singapore $31 billion, France $35 billion, Norway $49 billion . . .. 

We shouldn't really worry too much about China dumping $200 billion worth of US Treasury securities since 2012

China has cut its holdings of US debt to the lowest level in two years amid trade tensions:

The total has fallen by some $200 billion since the peak in 2012 . . .. Foreign government ownership of U.S. debt hit a record of $6.47 trillion, up 4% from a year ago, as the government’s total debt continues to swell and now has topped $22 trillion. Foreign residents increased their holdings by $23.9 billion.

Yeah, well, in May 2012 grand total foreign holdings came to about $5.27 trillion. In March 2019 the figure is north of that by $1.2 trillion across the globe.

US Treasury securities remain very popular, secure investments which pay better than most anything out there. Your only major alternatives paying better than for the US 10-year are Brazil, Mexico, India, Greece and Italy. Like the world is going to go shopping in those places instead of the US.

Gimme a break! 

Total alarmist BS from Zero Hedge on bonds headlined by Drudge

BS: Foreigner Boycott Of US Treasurys Continues: 7Y Auction Indirects Tumble To 3 Year Low

FACT:

Foreign Holdings Of US Treasuries Up Almost 11% Since 2011

Foreign holdings of US Treasury securities is up about 11% from November 2011, when the total outstanding was $5.01 trillion. In November 2012 $5.56 trillion is outstanding, according to the US Treasury, here.

About $548 billion in new monies has thus been lent by foreigners to the US in the twelve months through November 2012.

Federal revenues for fiscal 2012 are estimated at $2.5 trillion, with outlays at $3.8 trillion. That leaves about $750 billion of lending to the feds made up from domestic sources to pay for all the spending.