largest sale of U.S. Government Bonds in History

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Russia and China will encounter further U.S. government bonds
German Economic News | Published: 20.03.14, 00:07 | 85 comments
The US Treasury was now known, that Russia in January massive US government bonds sold. China also reduces further the purchase of the notes. It jumped Belgium and acquired in only two months bonds for 100 billion dollars.

Topics: Belgium, China, Japan, Lew, Russia, Schuldpapier, Government bond, U.S. bond, US Treasury,USA

The US Finance Minister, Jack Lew, are increasingly Worried about the low demand for U.S. bonds. (Foto: dpa)

Russia and China continue to sell in large-scale U.S. bonds. This is from the recently published Data from the U.S. Department of Treasury . Therefore sold in Russia in January U.S. Bonds in the value of seven billion dollars. The largest buyer of US debt, was once more the little Belgium.

The publication of the data undermined the authority of a gross error, because they published the first completely wrong Numbers. A few hours later, had the U.S. Treasury Department to admit, that the data were true, Zero Hedge reported. In fact, the Ministry had completely false data ago and had to be subsequently corrected.

For Japan, the authority had initially a standstill in the purchase of U.S. government bonds will be announced. In the corrected Version, bought Japan in January 2014 surprising about 19 billion of the notes.

Instead of the initially defined 14 billion dollars, bought China in January, in fact, only 3.5 billion dollars of U.S. bonds. And Russia has no U.S. bonds worth one billion dollars bought, as first published, but government bonds to the value of seven billion dollars sold.

Both China and Japan met in December massive U.S. bonds. Only China sold accordingly, bonds with a value of 48 Billion Dollars and so that as much as never before (more here).


Belgium is now with 310 billion dollars, the third largest holder of US debt. (Source: TIC, Zero Hedge)

Belgium had as a Savior to step in and bought alone in the December U.S. promissory note in the amount of 57 billion dollars. Also in January bought the small country of U.S. bonds for 53 billion dollars and is now with 310 billion dollars the third-largest holder of U.S. government debt. Only China and Japan hold even more bonds (the Fed excluded). For comparison: Belgium generated in the last year and a GDP of just over $ 500 billion.

According to rumors, the sale of U.S. government bonds in March only on the right to drive on. Unknown foreign investors, attracted bonds for about $ 100 billion, as Zero Hedge reported. This is the the largest sale of US bonds in the story. Whether Russia or China behind the action, we can only speculate. The US Treasury Department published the data only with a three-month delay. But it would not be surprised if the balance of Belgium also in the following month, will continue to grow.

 

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Belgium and US government bonds - what's going on there?
Guest contributor: Markus Fugmann
| 24.03.2014, 14:15 | 755 calls | 0 |
Belgium is in a short period of time the third-largest creditor of the United States have risen - the odd going on?

By Markus Fugmann, finanzmarktwelt.de - Ihr Auge im Zentrum der Finanzen




We had recently on the curious fact reported that Belgium within the shortest possible time the third-largest Holding of US Treasury bonds has risen. According to statistics, the U.S. Department Of The Treasury Belgium has now US Treasury bonds with a value of more than US $ 300 billion - an increase of almost 300% in comparison to November 2013. For comparison: Belgium's GDP in the year 2013 amounted to 100 billion US dollars.

What is behind this enormous increase in? Zerohedge.com had believed that Belgium to some extent, as of the balance sheet serve, on the one Item move to cover up the fact that large Bondholders like Russia, but especially in China on a large scale in US government bonds had sold. A comprehensible subject: the United States is dependent on foreigners, the enormous deficits in the country's budget, and if now due to the Russian crisis always clear strategic axis between China and Russia is emerging, could be a Buyers ' strike about by China have a serious impact on the United States. China, as the largest holder of US debt (just ahead of Japan) has US government bonds in an amount equivalent to just under 1.3 trillion dollars. The Sovereign debt so, are the weak point of the USA, and therefore it can be quite a political Motivation suspect that the USA is the world may be the real data are withheld. And Belgium, as it were, as of the balance sheet abuse, to the own vulnerability to conceal.

But then followed by a reader of the article “The Belgian wonders and US government bonds” the note, that at the strange increase in purchases of Belgium to the company Euroclear the interviewees.

Euroclear is in the Public largely unknown giant in the financial markets. The Business Model: Settlement of securities transactions, administration of Deposit of the securities and the custody of securities. To the customer Eurclears include all those in the financial sector, the name and rank: major banks such as Deutsche Bank, Goldman Sachs etc., but also Central banks. The company wrapped alone in the year 2013 transactions with a value of 573 billion euros - that's more than five times the GDP of Belgium.

To the note to pursue, we called at the press office of Euroclear and got the following information: The company acting as an Intermediary between buyers and sellers (e.g., in U.S. Treasury bonds), so in a sense, the infrastructure for the management of these purchases. It was like in a household in a way, the conduit through which the water is over before it from the faucet come.

But this also means that Not Euroclear itself is the buyer, but it is only the Mediator. And why would purchases of Government bonds the Euoclear taught, not just the U.S. Treasury Department under “Belgium” posted! On our question, because who then the Belgian buyer, they gave us the information, that the Belgian Central Bank in all probability, not in question come from (“you can call us, but we do not believe that you are there to report!”). It is possible that it is the banks from the Euro-zone handle, the purchases from Belgian entities that country, so banks such as Deutsche Bank, through its headquarters in London, a Belgian subsidiary, the purchase of US Treasury bonds commissioned. They want to about it, but do not wish to speculate, at least be from the USA reported values are very striking.

Fact is: Euroclear, a true giant in the market, is not the cause of the striking values, which the USA in relation to the foreign holder of U.S. Treasury bonds have reported. Either there are large Player on the market, in a concerted action considers that their money is now the best in US government bonds repealed. Or it is so, how zerohedge.com had suspected that the Americans Bilanztricks apply to a very unpleasant truth from abroad to cover up..



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