Foreigners Dump The Most US Stocks Since 2019

Foreigners Dump The Most US Stocks Since 2019

Having broken its 4-month streak of buying in March (the longest streak since 2017), China sold US Treasuries for the second straight month in April (the latest TIC data available), down to fall to $1.096trn in April from $1.100trn in March…

Source: Bloomberg

But, Japan’s holdings increased in April by $36.4b to $1.277t

Source: Bloomberg

But, perhaps the most notable aspect of today’s TIC data was that for the first time since April 2020, Foreigners sold US equities in April… (and that was the biggest net selling since August 2019 when we had the repo crisis and NOT QE)…

Additionally, the last twelve months’ transactions in TSYs by foreign central banks just turned positive for the first time since Feb 2015

Overall in April:

Foreign net buying of Treasuries at $49.6b

Foreign net selling of equities at $13.3b

Foreign net buying of corporate debt at $10.1b

Foreign net buying of agency debt at $46.8b

And finally, despite the 12mth net buying, the recent trend of rotation into Treasury reserves from gold may have just reverted…

Source: Bloomberg

Tyler Durden
Tue, 06/15/2021 – 16:13

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