{"id":11508,"date":"2015-08-27T06:54:00","date_gmt":"2015-08-27T11:54:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11508"},"modified":"2015-08-27T06:54:00","modified_gmt":"2015-08-27T11:54:00","slug":"its-official-china-confirms-it-has-begun-liquidating-treasuries-warns-washington","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11508","title":{"rendered":"It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington"},"content":{"rendered":"

It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington<\/a><\/h3>\n

On Tuesday evening,\u00a0we asked<\/a>\u00a0what would happen if emerging markets joined China in dumping US Treasurys. For months we\u2019ve documented the PBoC\u2019s liquidation of its vast stack of US paper. Back in July for instance, we noted that China\u00a0had dumped<\/a>\u00a0a record $143 billion in US Treasurys in three months via Belgium,leaving Goldman speechless<\/a>\u00a0for once.<\/p>\n

We followed all of this up this week by noting that thanks to the new FX regime (which, in theory anyway, should have required less intervention),\u00a0China has\u00a0likely sold<\/a>\u00a0somewhere on the order of $100 billion in US Treasurys in the past two weeks alone\u00a0<\/strong>in open FX ops to steady the yuan. Put simply, as part of China’s devaluation and subsequent attempts to contain said devaluation, China has been purging an epic amount of Treasurys.<\/p>\n

But even as the cat was out of the bag for Zero Hedge readers and even as, to mix colorful escape metaphors, the genie has been out of the bottle since mid-August for China which, thanks to a steadfast refusal to just float the yuan and be done with it, will have to continue selling USTs by the hundreds of billions, the world at large was slow to wake up to what China\u2019s FX interventions actually implied until Wednesday when two things happened: i) Bloomberg, citing fixed income desks in New York, noted “substantial selling pressure” in long-term USTs emanating from somebody in the “Far East”, and ii) Bill Gross asked, in a tweet, if China was selling Treasurys.<\/p>\n

Sure enough, on Thursday we got confirmation of what we\u2019ve been detailing exhaustively for months. Here\u2019s\u00a0Bloomberg<\/a>:<\/p>\n

\n
China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter.<\/em><\/strong><\/div>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

\u00a0<\/i><\/p><\/blockquote>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington On Tuesday evening,\u00a0we asked\u00a0what would happen if emerging markets joined China in dumping US Treasurys. For months we\u2019ve documented the PBoC\u2019s liquidation of its vast stack of US paper. Back in July for instance, we noted that China\u00a0had dumped\u00a0a record $143 billion in US […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3038,1957,8469,1870,130,6038,1583,2228,534,8470,662,675,775,1031,4318],"class_list":["post-11508","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-america","tag-belgium","tag-bill-dudley","tag-bill-gross","tag-china","tag-fixed","tag-housing","tag-market","tag-monetary-policy","tag-nomura","tag-quantitative-easing","tag-renminbi","tag-switzerland","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11508"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11508\/revisions"}],"predecessor-version":[{"id":11509,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11508\/revisions\/11509"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}