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Zero Hedge: Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $375 Billion In US Paper
One month ago, when we last looked at the Fed's update of Treasuries held in custody, we noted something troubling: the number had dropped sharply, declining by over $22 billion in one week, one of the the biggest weekly declines since January 2015, pushing the total amount of custodial paper to $2.805 trillion, the lowest since 2012. One month later, we refresh this chart and find that in last week's update, foreign central banks continued their relentless liquidation of US paper held in the Fed's custody account, which tumbled by another $14 billion over the course of a week, pushing the total amount of custodial paper to $2.788 trillion, a new post-2012 low.
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WNU Editor: This is more of a reflection on how weak the Saudi and Chinese economies have become .... and the need of these governments for money to finance their budgets .... than what is happening in the U.S..
