China, Japan and UK Dump $81,000,000,000 in US Treasuries in Just One Month As China Pours Capital Into Gold

China, Japan and the UK are dumping billions of dollars in US Treasuries.

New numbers from the Treasury Department show the three nations collectively slashed their holdings by $81 billion in December.

China unloaded $9.6 billion in Treasuries, reaching its lowest holdings since 2009 at $759 billion.

Japan sold off $27.3 billion in bonds, with the nation now holding $1.0598 trillion in Treasuries, the most of any single country.

And the UK also pared back in a major way, leading the pack with $44.1 billion in Treasury sales, reaching a total holdings of $722.7 billion.

This trio’s retreat from US debt, combined with China’s aggressive gold accumulation, underscore concerns about a potential strategic shift away from US dollar assets as America faces a $2 trillion deficit and mounting borrowing costs.

The moves also come as yields on 10-year Treasuries hover near 4.5%, testing demand as the Federal Reserve continues its quantitative tightening, offloading $60 billion in Treasuries each month.

After a six-month pause, China resumed buying gold in November of last year.

And the buying continued in December, with China’s central bank adding about ten tons of gold reserves in the month for a total of 2,280 tons by year-end, according to data from the the World Gold Council.

 

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