Overall, June was a ‘buy all the US things’ month for foreign investors
- Long-Term Treasurys +$10.9BN
- Agencies +22.7BN
- Corporate Bonds $13.8BN
- Corporate Stocks +$25.2BN
That is the biggest stock buying binge since March, led by non-official source buying (Foreign Official institutions -5.4BN, Other foreign entities: +30.6BN)…
For the 4th straight month, China dumped US Treasuries in June (the latest TIC data). In fact, over the last two months, China sold over $34 billion in Treasuries – the biggest dump since 2016…
Source: Bloomberg
Belgium also saw significant selling (often considered a proxy for China selling via Everclear), now with the lowest holdings since Sept 2020…
Source: Bloomberg
Japan bought Treasuries in June (after selling in May)…
Source: Bloomberg
And finally, hedge funds appear to have been big buyers of bonds in June as Catman Islands added almost $16bn (up for the 3rd month in a row)…
Source: Bloomberg
As a reminder, the benchmark 10-year Treasury yield decreased about 13 basis points in June to 1.47%.
Finally, we note that the shift from Treasuries to Gold among global reserves remains in tact…
Source: Bloomberg