3,882
edits
Treasury General Account: Difference between revisions
no edit summary
No edit summary |
No edit summary |
||
| Line 41: | Line 41: | ||
==== Liquidity coming from Foreigh Holders ==== | ==== Liquidity coming from Foreigh Holders ==== | ||
Foreign holders are the second larger holders of US tresuaries with 7.57 trillion, about 23% of federal debt, as of March 2023. <ref>https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html</ref> | |||
However, since beginning of 2022 they have become net sellers, with a Y/Y change of -5.4% as of Q4 2022, and a decline of about 400 billion from the peak. Inflowns of 200 billions in March 2023, are due to the fligh to safety that happened during the banking crisis turmoil in march. <ref>https://www.reuters.com/markets/us/foreign-buying-us-treasuries-march-hits-largest-since-june-2021-data-2023-05-15/</ref> | |||
So, giving the recent trend, and the fact that is not unccomon for foreign holders to reduce US treasuries during recessions and finantial stress especially when the US dollar is strong , is not expected that these type of investors will be able to absorb a large part of the US debt issuance during next months. | |||
== References == | == References == | ||