A decline in US Treasuries holdings – August report

According to a recent report, of the U.S. Department of the Treasury, the U.S. Treasuries longer-term notes by other countries declined by $16.7 billion during June compared with May’s acquisitions.

Foreign holdings of all dollar-denominated short-term U.S. securities and other custody have also decreased $14.7 billion.

China’s holding of U.S. Treasuries Securities rose for the third consecutive month; during June 2011 it inclined by 0.49% or $5.3 billion to a record $1.165.5 trillion, well above the $844 billion China had held back in June 2010. There were also rises in June compared with May’s holding to other countries including UK (by $2.7 billion); on the other hand Japan’s holding of U.S. Treasuries Securities fell by $1.4 billion to $911 billion. The total holdings by countries of U.S. Treasuries Securities fell by $16.7 billion – a first time decrease in total holdings in 2011.

During June, the total holdings by foreign residents in U.S. Treasuries longer-term notes fell by -$11.5 billion, nearly $56 billion decline compared with the $44.6 billion net purchases in May. This means for the first time November 2008, the gross foreign sales exceeded the gross foreign purchases by foreign residents.

At the same time, the total holdings of long term Treasuries securities by U.S. residents also declined by $15.2 billion.

These findings suggest a shift in the trend of holding U.S. Treasuries Securities, as it lost its appeal in June. As we all know, however due to the recent high uncertainty in the financial markets, it’s likely that traders will purchase back U.S. Treasuries Securities.


The current Nymex WTI oil short term futures price (September 2011 delivery) inclines by $1.54/b to $86.92 / barrel as of 15:07*.

Current gold price, short term futures (September 2011 delivery) is traded at $1,741.8 per t oz. a $0.8 decrease or 0.05%, as of 15:10*.

Euros to USD is currently traded down at 1.4450 a 1.4146% increase as of 15:15*.

(* GMT)


For more on this subject: