• 7 hours Iraq Begins To Rebuild Largest Refinery
  • 11 hours Canadian Producers Struggle To Find Transport Oil Cargo
  • 13 hours Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 15 hours China's CNPC Considers Taking Over South Pars Gas Field
  • 16 hours BP To Invest $200 Million In Solar
  • 17 hours Tesla Opens New Showroom In NYC
  • 18 hours Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 20 hours Venezuela Sells Oil Refinery Stake To Cuba
  • 1 day Tesla Is “Headed For A Brick Wall”
  • 1 day Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 1 day IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 2 days Goldman Bullish On Oil Markets
  • 2 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 2 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 2 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 2 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 2 days Colombia Boosts Oil & Gas Investment
  • 2 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 2 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 3 days Aramco On The Hunt For IPO Global Coordinators
  • 3 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 3 days India Feels the Pinch As Oil Prices Rise
  • 3 days Aramco Announces $40 Billion Investment Program
  • 3 days Top Insurer Axa To Exit Oil Sands
  • 4 days API Reports Huge Crude Draw
  • 4 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 4 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 4 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 4 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 4 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 4 days Exxon To Start Reporting On Climate Change Effect
  • 4 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 4 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 5 days Forties Pipeline Could Remain Shuttered For Weeks
  • 5 days Desjardins Ends Energy Loan Moratorium
  • 5 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 5 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 5 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 7 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 7 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

Alt Text

5 Big Gainers In Oil & Gas This Week

Energy stocks have been among…

Alt Text

World Bank To Cut Off Oil & Gas Funding

In accordance with the Paris…

Alt Text

Why Wall Street Is Bullish On Refiners

Wells Fargo has noted that…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Its Official: China is Unloading its Treasury Bonds

Its Official: China is Unloading its Treasury Bonds

It looks like the smart money these days is found in China. While American investors have been scrambling over each other to buy more Treasury bonds at historically low yields, China has begun quietly unloading some of its own enormous holdings. In June, the Middle Kingdom sold $21.2 billion of  paper, reducing its net long to $839.7 billion. This is little more than 10% of the total $8.18 trillion in federal debt that Uncle Sam has outstanding.

Total foreign ownership of US Treasury bonds amounts to $4 trillion, up from $2.4 trillion in three years.  Instead, the Chinese have been buying Japanese government bonds, which today carry a paltry 0.9% yield, but have the merit that they are denominated in a rapidly appreciating currency. The Mandarins in Beijing have also been picking up a variety of bonds in Europe which have seen yields pushed to near records, thanks to the debt crisis there.

Officials at the People's Bank of China say that it is all part of a broader diversification effort away from the greenback. PIMCO's Bill Gross has apparently been taking Mandarin lessons on the sly because he has also been paring back his own massive holdings in longer dated Treasuries. To understand why, take a look at the chart below of the spread between the Dow dividend yield and the ten year Treasury yield which has turned positive for the first time since 1955.

US Treasuries owned by China

Foreign country ownership of Treasuries

dividend yield

Courtesy: Mad Hedge Fund Trader




Back to homepage


Leave a comment
  • Anonymous on August 27 2010 said:
    I've been unloading them too. Gold, silver, food, guns, ammo, etc. All these paper 'investments' are BS.
  • Anonymous on August 29 2010 said:
    YO JR if y'all is so radicalwhy are you following the sheeple? It's time to move to the t'other side and buy basic comodities of oil, copper, coal and agriculture logistics. You'll be happy you did 'cause y'all will have money in your pocket and the ammo won't run out in my world of brains over fear.
  • Anonymous on September 01 2010 said:
    Sorry, Aceman. You don't actually own anything real unless you can hold it. You own more paper. Jr actually owns and holds his belongings and if the world gets ugly, or he just becomes unemployed, JR will be just fine.GOT FARM?

Leave a comment




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