Foreign holdings of US Treasuries have jumped by $2.6 TRILLION over the last decade.
Europe’s Treasury holdings have risen by $1.5 trillion with the rest of the world acquiring $1.7 trillion of bonds. On the other hand, China and Japan's holdings have shrunk by ~$500 and ~$100 billion, respectively. Overall, total foreign holdings as a share of outstanding federal debt have dropped from 35% to 24%, near the lowest level in 18 years. This is the consequence of rapidly rising public debt with the supply of Treasuries rising ~$15 trillion over the last decade. Foreign demand for Treasuries cannot keep up with skyrocketing US debt. Source: The Kobeissi Letter
Ahead of US elections, Yuan’s overnight implied volatility is going through the roof
Source: David Ingles, Bloomberg
The BOJ kept interest rates steady on Thursday
The BOJ roughly maintained its forecast that inflation will hover near its 2% inflation target in coming years, signaling its readiness to continue rolling back its massive monetary stimulus. The Yen climbed as much as 0.9% on Ueda comments.
Central bank of India moves another 102 tonnes from London to its own vaults. It’s a trend.
Source: Times of India
Japan is the perfect example of the failure of Keynesian policies.
More government spending only generates more debt and stagnation, and with years of printing, the yen keeps depreciating. Graphs JP Morgan and Bloomberg thru Daniel Lacalle on X
BREAKING 🚨: The "Yen carry trade unwinding risk" is unwinding
Japanese Yen has fallen through the 150 level against the U.S. Dollar for the first time in 2.5 months Source: Barchart
China's Q3 GDP hits weakest pace since early 2023, backs calls for more stimulus
China's economy grew at the slowest pace since early 2023 in the third quarter, and though consumption and factory output figures beat forecasts last month a tumbling property sector remains a major challenge for Beijing as it races to revitalise growth. See below key China GDP data: Q3 GDP 4.6% y/y [Est.+4.5%] Q1-Q3 GDP 4.8% y/y [Prev.+5.0%] Sept retail sales 3.2% y/y [Est.2.5%] Sept industrial growth 5.4% y/y [Est.4.5%] Jan-Sept fixed asset investment 3.4% y/y [Est.3.3%] Sept Unemployment 5.1% [Prev. 5.3%] Source: Reuters, MacroMicro
BREAKING 🚨: Chinese Stocks enter technical correction after falling more than 10% from the October 8th high
Source: Barchart
