Shocking Trends Revealed By TIC

While media focuses on the export deal between the US and China, worth $45 billion, they miss the Chinese quietly reducing their treasury security holdings by $11.2 from October to November. This reduction marks yet another monthly reduction that has reduced the Chinese’s treasury exposure by a whopping $44.3 billion since July 2009. This largely ignored and 'shocking' trend is not alone. United Kingdom’s (labeled United) ascension from a minor holder in 2009 to third largest, nearly 12%, in 2010 is equally shocking.

Major Holders of US Treasury Securities:


Headline: U.S. and China reach $45 billion in export deals

The United States and China reached agreement on export deals worth $45 billion, a senior U.S. official said on Wednesday at the formal start of Chinese President Hu Jintao's state visit.

The agreements included China's final approval of a $19 billion contract to buy 200 Boeing (NYSE:BA - News) aircraft for delivery between 2011 and 2013, which U.S. officials estimated would support 100,000 American jobs.

Source: finance.yahoo.com

Headline: China cuts Treasury holdings in November

China cut its holding of U.S. Treasurys in November by $23 billion, though its overall holdings remained the largest of any foreign nation at $895.6 billion, according to data released Tuesday by the Treasury Department. The decline followed net purchases by China of more than $23 billion in October, which lifted its holdings $906.8 billion, the highest level since November 2009, according to data contained in the monthly Treasury International Capital report

Source: marketwatch.com