Belgium Dumps $26 Billion in US Treasuries in May

[Smaulgld]

Russia and China add to their US Treasury Holdings in May while Belgium dumps $26 billion.

https://smaulgld.com/foreign-holdings-u-s-treasuries/

 

[randomname]

"Belgium" is most likely a front for China

http://www.zerohedge.com/news/2015-05-18/revealing-identity-mystery-belgian-buyer-us-treasurys

 

[Smaulgld]

"Belgium" is most likely a front for China

http://www.zerohedge.com/news/2015-05-18/revealing-identity-mystery-belgian-buyer-us-treasurys

Somewhat agree but why would China have added all those T
bonds last year? I thought it might have been a fed proxy to buy as the Fed ended QE?

 

[Smaulgld]

Somewhat agree but why would China have added all those T
bonds last year? I thought it might have been a fed proxy to buy as the Fed ended QE?

Merril Lynch also said it was China
http://www.bloomberg.com/news/artic...des-treasury-buys-in-belgium-chart-of-the-day

 

[Warrior_of_Freedom]

Time to liberate Belgium?

 

[Zippyjuan]

"Belgium" is most likely a front for China

http://www.zerohedge.com/news/2015-05-18/revealing-identity-mystery-belgian-buyer-us-treasurys

Belgian Treasuries are mostly collateral for loans and trades. new financial rules require better collateral than before. Belgium is the financial center of Europe. http://www.ft.com/intl/cms/s/0/a1de1546-c489-11e3-b2fb-00144feabdc0.html#axzz3g6b4GtEG

A further explanation for the rise of Belgium as a big Treasury holder is financial reform that requires the greater use of top-rated government debt as collateral for derivatives trades.

Euroclear, which holds more than €22tn in assets under custody, confirmed that the volume of US Treasuries it holds had “gone up dramatically” in recent months.
Traders say Euroclear is renowned for its sophisticated collateral management system, which helps global investors move bonds to various clearing houses around the world.

US Treasury paper is the largest and most liquid of “safe” collateral used to backstop the financial system. Indeed, since the financial crisis, the amount of outstanding US Treasury debt has nearly tripled to $12tn, creating a vast pool of collateral for the global financial system.

The US Treasury has sought in recent years to improve how its official data are collected as some countries purchase government bonds through intermediaries in major financial centres such as London or Hong Kong. This means financial centres are temporarily highlighted as large buyers, rather than the countries that are really adding to their Treasury holdings.

 

[Smaulgld]

I havent seen a decent explanation why belgiums holdings suddenly surged and then plummetted

 

[osan]

Somewhat agree but why would China have added all those T
bonds last year? I thought it might have been a fed proxy to buy as the Fed ended QE?

I suppose it could be either, but it makes all good sense that they would be buying. Remember the notion of "all good faith and credit"? Yeah, well, when the USA goes tits-up WRT the ability to make good on the bond promises, I suspect China and Russia will be going after the good faith and credit part, which would be anything tangible such as YOUR house, mineral rights, and so forth. If the USA tells them to get bent, well then I suppose we have WW III on our hands.

 

[Zippyjuan]

I suppose it could be either, but it makes all good sense that they would be buying. Remember the notion of "all good faith and credit"? Yeah, well, when the USA goes tits-up WRT the ability to make good on the bond promises, I suspect China and Russia will be going after the good faith and credit part, which would be anything tangible such as YOUR house, mineral rights, and so forth. If the USA tells them to get bent, well then I suppose we have WW III on our hands.

Treasuries are not backed by any physical, tangible assets. They can't trade their Treasury notes for any property or anything other than dollars.

 

[LibForestPaul]

Treasuries are not backed by any physical, tangible assets. They can't trade their Treasury notes for any property or anything other than dollars.

Treasuries are backed by a gun.

 

[randomname]

the greeks sure wish they had privilege right now