Foreigners Flee From US Government Bonds in April, Treasury Says
Friday, 14 Jun 2013 10:16 AM
Foreign investors dumped U.S. government debt in April and were net sellers of all long-dated U.S. securities for the third consecutive month, the U.S. Treasury said on Friday.
Selling was heavily concentrated in Treasury bonds and notes, with overseas investors unloading $54.5 billion, the first net outflow in seven months. Private investors alone sold $30.8 billion - the largest one-month outflow on record.
Overall, foreigners sold $37.3 billion in long-term U.S. securities, the largest outflow in at least three years. March's outflow was revised slightly to $13.4 billion.
"Demand for U.S. securities was much weaker in April," said Gennadiy Goldberg, U.S. strategist at TD Securities. He said the scope of Treasury sales was "somewhat surprising given the fresh bout of European uncertainty observed in the month," referring to a European Union rescue of Cypriot banks.
Official investors, including central banks, were also net Treasury sellers in April. China, the largest foreign U.S. creditor, slashed its holdings by $5.4 billion to $1.265 trillion. Japan sold $14 billion, leaving its total holdings at $1.114 trillion.
SO IF YOU WATCH WHAT THE FOREIGN SOVEREIGNS DO AND WHAT THE PRESIDENT OF THE UNITED STATES DOES, NOT WHAT THEY SAY, WHAT THEY ACTUALLY DO. If you go look at the public speeches by Japan's Fed guy, or China's Fed guy or Big Ben, they are going to keep rates down by buying. When you see what the other agencies of their governments are doing, IS SELLING. Get it, the FED officials are the PUMPERS, while their countries are SELLING. It is only natural, you want to talk up the markets so that you can distribute volume, otherwise prices will plummet. In the past you could do this a get away with it for months, even years. But social media and the internet brought light on the subject pretty fast. I was here on this board alerting.
April broke records of net selling of U.S. Treasuries. When the FED reports on May and June, two more new records were made. THIS IS HISTORIC EVENTS. RECORD BREAKING SALES. I haven't seen the numbers but the FED asset purchase program QE looks like a 2 incher compared to a 10-12 incher of HISTORIC PROPORTIONS in May and June. Just my opinion, the FED is no longer control, Japan and China, the Master-Puppeteers controlling our FED have said enough is enough of QE. Eventually, the truth will come out, and the FED will have to fess up, that all QE accomplished was an asset bubble, it did not create jobs, except at the retail stores for minimum wage. What we need now is a MASSIVE RESET. Much higher rates, lower stock prices and higher Internal Rates of Return, to attract long term investments into this country.