According to the US Treasury Department’s latest international capital flow report on June 16 (the official position data release has a two-month delay convention), in April, China’s holdings of US debt fell again by 4.3 billion The US dollar has been reduced for two consecutive months, and the total amount has fallen to 1.096 trillion US dollars, accounting for about 2.11%of the total holdings of US debt. China also sold 3.8 billion US debt in March, ending the fourth consecutive year before March 2021. Months of purchase status.
In addition, the latest report data It also shows that the United Kingdom, Ireland, Belgium, Saudi Arabia, South Korea, France, Thailand and other overseas US debt Holders have also reduced their holdings of U.S. debt to varying degrees. At the same time, foreign investors have once again net sold U.S. securities assets since April 2020, which is also the largest net selling rate since August 2019.
Unexpectedly, according to According to data from the U.S. Treasury Department, Japan increased its U.S. debt holdings by 2.9%to $1.28 trillion in April, the highest since August last year. It ended two consecutive reductions in U.S. Treasury holdings. Japan, which has the largest U.S. bond holdings in the world, After adding 25.4 billion U.S. debt in January, it continued to reduce its U.S. debt holdings by 1.4%(17.7 billion U.S. dollars) to 1.24 trillion U.S. dollars in March, the lowest since January 2020. Before that, Japan 2 Reduced its holdings of 18.5 billion U.S. debt in the month.
We have noticed that this is the second increase in Japan’s holdings of U.S. Treasuries in the last nine months. The U.S. Treasuries held previously accounted for The proportion of the total debt of the US government has been at a historically low level.
It is worth mentioning that Russia did not enter the list of one of the largest holders of the US Treasury report. Data from the US Treasury Department showed that Russia reduced its holdings in March. About 30%of U.S. debt positions fell to about 4 billion U.S. dollars, and since 2018, Russia began to sell sharply Since then, the position has been reduced by 95%. Even the Russian authorities announced last week that they would divest USD assets from their national sovereign wealth fund to replace Euro, renminbi and gold and other non-US currency reserves.
In fact, since the most recent In a year’s time, not only Russia, but also large institutional investors with national backgrounds, including the US’s economic allies, are moving away from U.S. debt. Demand for U.S. bonds is declining and investment is slowing down because the United States has implemented The extremely low interest rate policy has led to a decline in the attractiveness of U.S. debt.
In the past month, the 10-year U.S. Treasury yield began to rise sharply, once soaring to 1.75%, the highest level in the next year, alarming the global market, which means that U.S. debt has been sold on a large scale by investors, judging from the longer-term data released by the U.S. Treasury Department In the 24 months ending in April, global central banks have substantially sold trillions of U.S. debt in 27 of the past 38 months, and the trend of de-dollarization continues. The debt king Gross made it clear a week ago that as inflation in the United States accelerated to more than 3%, I was shorting U.S. debt.
Finance Quartz and ZeroHedge almost simultaneously quoted Wall Street analysts as saying that global central banks, which are the cornerstone buyers of U.S. debt, are expected to sell large-scale U.S. debt without warning, which may be as high as $2 trillion.
Peter Schiff, the author of the book”The Great U.S. Dollar Collapse,” analyzed that with the surge in the US double deficit, risk factors are increasing rapidly. Obviously, the United States is now targeting its own economic unlimited amount quantitative easing and Zero interest rate will cause the dollar’s liquidity to turn from drought to flood, which will ultimately affect the value and status of the dollar, prompting the market to find alternatives to dollar assets Solutions, for example, gold. As the data in the figure below shows, despite the increase in the holdings of US Treasury bonds by global central banks in the context of the large US currency printing, the trend of de-dollarization in recent years has continued.
The World Gold Council mentioned in the latest report released in June that although the pace of global central bank purchases of gold has slowed, The number of net purchases of gold continues to exceed the number of central banks that sell gold. Citi predicts gold purchases by global central banks Demand will rebound again in 2021. For example, only in April this year, the global central bank official gold reserves net An increase of 69.4 tons. In the first three months of 2021, the global central bank has purchased 95.5 tons of gold. Among them, the Hungarian Central Bank bought 63 tons. In the first quarter, funds flowed into the world.Gold ETF reached 3574 tons.
The above is justifying that gold is still in the global currency and The financial system plays the role of a trust anchor. At the same time, Chinese institutions are also international gold market Breaking the silence on breaking the silence sent new signals, and the latest news surprised investors even more.
according to Zerohedge’s follow-up The report also stated that since the global central bank has not reported some data on the acquisition gold reserves to the IMF or the World Gold Council Since then, thousands of tons of gold may have arrived in the Chinese market. BWC Chinese website mentioned in a report released a few days ago, according to According to data released by the China Gold Association a week ago, as of April, the domestic gold ETF holdings were about 72.4 tons, a record high. At the same time, the demand for gold products in the Chinese market also increased by 212%year-on-year. Then, according to an updated report cited by the US financial website Silverdoctor a week ago, since the Chinese market suspended gold imports in 2020, Swiss gold merchants have already Starting to export gold to China in February.
Customs data shows that since February 2020, the average monthly gold imported About 10 tons. In 2019, the monthly import volume was as high as about 75 tons. According to the Shanghai Stock Exchange, it was given to the BWC Chinese website a week ago. Reporter‘s data, in 2020, Shanghai Gold Exchange all gold varieties accumulatedTrading volume reached 58,700 tons, Year-on-year growth 4.91%, and since RMB gold futures listed Since the transaction, the annual trading volume has increased from 34.76 million lots in 2016 to 52.41 million lots in 2021, an increase of 51%, ranking second in the world.
According to the latest data provided to the BWC Chinese website in the previous period, China’s first precious metal option RMBGold Option Since its listing a year ago, the renminbi pricing function has initially emerged, and it has further increased the Chinese market’s share in the international gold market, and further demonstrated that it can provide investors Global institutions in China use RMB gold options to hedging market risk.
At the same time,Germany, Poland, Netherlands, Turkey, Australia, France, Hungary, Belgium, Switzerland, Venezuela, Romania, Austria, Russia, Slovakia, Italy, and other 15 countries have also announced that they have successively shipped or shipped back some of their gold reserves from the United States and other places and plans to ship gold back to the country in advance. The latest development is that the Netherlands also announced earlier that it will soon transfer most of its gold to the central bank’s cash center, and clearly expressed its approval Gold standard system.
The above happened globally The latest news in the financial and gold markets is not trivial. According to the World Gold Council’s report, it is explained in the Bretton Woods Since the disintegration of the system, gold has still played the role of an anchor of trust in the global financial system, but the U.S. dollar has not been able to do this in the long run. These indicate that the value of gold’s natural storage of wealth is returning from the edge of currency history. This is also something readers and friends should pay attention to. (End)