According to data released by the US Treasury Department, the changes in holdings of the top three foreign creditors of US debt in June were mixed: Japan and Britain increased their holdings, while China reduced their holdings.
According to statistics, at least 14 countries around the world sold US Treasury bonds in June. Among them, China, Belgium, Luxembourg, India, Brazil, Singapore, South Korea, Saudi Arabia, Mexico, the United Arab Emirates, Thailand, the Philippines, Italy, and Vietnam sold US debt to varying degrees.
China reduced their holdings for 3 consecutive months, while Japan and the United Kingdom increased their holdings
According to the June International Capital Flows Report (TIC) released by the US Treasury Department on the 15th,Japan's holdings increased slightly after the previous month's big sell-off.Japan increased its holdings of US Treasury bonds by 8.8 billion US dollars in June, and its holdings reached 1105.6 billion US dollars, making it the largest creditor of the United States. Earlier in May, Japan had reduced its holdings of US Treasury bonds by 3.4 billion US dollars, for the first time since February.
As the second largest holder of US debt,China reduced its holdings of US Treasury bonds by 11.3 billion US dollars in June, and its holdings fell to 835.4 billion US dollars, falling for the third month in a rowThe previous low position size was $801.5 billion, which was set in May 2009.
Since April of last year, China's US debt holdings have remained below 1 trillion US dollars, and since August of last year to February of this year, it has reduced its holdings of US Treasury bonds for 7 consecutive months from August of last year to February of this year. It increased its holdings of US debt by 20.3 billion US dollars in March this year, then reduced its holdings by 400 million US dollars in April, and 22.2 billion US dollars in May. From April to June this year, China sold a total of 33.9 billion US bonds for 3 consecutive months.
From a model point of view, China is speeding up the liquidation of US debt. Judging from the rules of holding US debt positions in the past, this is rare.
According to statistics from the BWC Chinese.com International Finance Team, the total amount of US debt held by China in November 2013 was about 1367 trillion US dollars. Compared with the current holdings of 835.4 billion US dollars, China has sold a total of up to 481.3 billion US dollars of US Treasury bonds, with a cumulative net sell-off ratio of about 37%.
The UK increased its holdings of US Treasury bonds by 11.9 billion US dollars to 672.3 billion US dollars, ranking third in terms of holdings.
Major oil producers continue to sell off
It is worth noting that after several oil producers collectively sold US Treasury bonds in May, Saudi Arabia, the world's largest oil producer, and the UAE, another oil producer, once again sold US bonds in June.
Saudi Arabia sold a total of 8.1 billion US dollars of US Treasury bonds for 3 consecutive months from April to June. Currently, Saudi Arabia's US debt holdings have fallen from a peak of 184.4 billion US dollars two years ago to a low of 108.1 billion US dollars, with a cumulative net sell-off of 76.3 billion US bonds.
Following the sale of 1.2 billion US bonds in May, the oil producer UAE sold 3.8 billion US bonds in June.
While Saudi Arabia is continuing to cut oil production, it has also claimed many times that it may end the petrodollar agreement it signed with the US in the 70s of the last century at some point in the future, that it will no longer accept orders from the US, continuously shift its economic, trade and monetary focus eastward, and hope to join the BRICS and support a new currency that anchors gold... America's plans to barely maintain the status of petrodollar US debt are falling through. According to an exclusive analysis by an energy currency analyst at BWC Chinese.com, there is a possibility that Saudi Arabia will cancel US debt in the future.