• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 15 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 16 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 14 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 15 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 16 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 17 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 1 day Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day Itt looks like natural gas may be at its lowest price ever.
  • 18 hours Saudi A to Splash $100 Bln on India
  • 11 hours Washington Eyes Crackdown On OPEC
  • 13 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
Alt Text

Russia May Feel Pinch From Oil Cut Deal This Year

Russia’s central bank warned that…

Alt Text

Global Economy Throwing Up Red Flags For Oil

Investors are feeling increasingly gloomy…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Is China Betting Against a U.S. Housing Recovery

This just might be chart of the year. Chinese buying of U.S. government agency bonds.

Foreign Buying of US Securities

Data released last week show buying fell off a cliff in September. In fact, China sold a net $26.3 billion in agency bonds during the month.

This is China's largest monthly net sale ever (by far). And could be a sign China is betting against any kind of U.S. housing recovery.

Agency bonds are issued by government entities mainly in the housing finance sector. Such as Freddie Mac and Fannie Mae, both controversial entities during the financial crisis that were eventually bailed out by the government.

As the chart shows, China's been a lot less enthusiastic on agencies since the financial problems of 2008. But it appears Beijing may have suddenly grown even more negative this fall. Are they seeing problems ahead for U.S. housing?

One point of note: this doesn't appear to be an across-the-board bet against America (or the dollar) by China. Chinese purchases of U.S. Treasury bonds came in at a healthy +$10.3 billion in September.

China buying of US Bonds

In fact, Chinese Treasuries purchases have been very strong since the financial crisis. Perhaps the September action represents some portfolio re-balancing from agencies to Treasuries.

Whatever the case, an important data point if you're considering the future of U.S. housing.

By. Dave Forest of Notela Resources




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News