ARE FOREIGN BANKS DUMPING US TREASURY BILLS?

Are foreign banks and other foreigners, aside from official institutions, dumping the United States of America treasury bills?

It looks like. This is because, according foreign holdings report for October released December 15, what began as single digit drops in September has landed in double digit.

By October holdings of US treasury bills dropped by 10% to $106.4bn from $118.3bn in September. This was after September value closed 3.25% down on August's $122.3bn.

Since 2016, monthly figures of foreign banks holdings had been more down than up resulting in the October figure being 15.1% lower than 2015's closing figure.

In the case of TB holdings by other foreigners the drop in October at 11.5% on September was even sharper. Their US TB holdings came to $244.7bn compared to $276.6bn in September.

By April, their holdings had surged to 2016 monthly high of $288.1bn and so, the October figure was down 15.1% from this height after rising marginally in two months and dropping more sharply in the other four months.

Holdings of US TBs by official institutions however increased by 1.02% in October to $295.1bn from $292.1bn in September. It was still down 12.3% on $336.7bn recorded by 2015 close.

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