• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 7 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 5 hours Europe: The Cracks Are Beginning To Show
  • 7 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 5 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 3 hours Hong Kong protesters appeal to Trump for support.
  • 2 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 3 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 12 hours Shale profitability
  • 7 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 19 mins Millennials: A boil on the butt of the work ethic
  • 18 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 6 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 3 hours Let's shut down dissent like The Conversation in Australia
  • 1 day A little something for all you Offshore swabbies
  • 15 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
Dave Forest

Dave Forest

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

More Info

Premium Content

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



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play