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September 17, 2022
14:32 pm
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Data from the US Treasury showed, on Friday, that China increased its holdings of Treasury bonds in July for the first time in eight months, while Japan reduced them, its savings rose to $ 970 billion in July, from $ 967.8 billion in June, which was at the lowest level Her since May 2010 when she had $843.7 billion.
In contrast, Japan reduced its holdings of Treasuries to $1.234 trillion in July, from $1.236 trillion the previous month, but remains the largest non-US holder of bonds; The cut is somewhat in line with currency market moves as the yen consolidated once morest the dollar in July and ended the month at 131.6 yen to the dollar, from 135.22 yen to the dollar initially.
The sharp decline of the yen once morest the dollar this year has increased the possibility of Japan entering the market to support the Japanese currency, which has fallen since the beginning of 2022 by 19.5% once morest the US currency.
In general, foreign holdings of US bonds rose to $7.501 trillion in July (from 7.430 trillion in June). foreign entry for the third month in a row.
These flows were in line with the price action in the bond market. The 10-year Treasury yield (benchmark) started in July at 2.904% and ended the month at 2.642%; In other asset classes, foreigners sold US stocks in July for the seventh consecutive month, valued at $60.32 billion, out of $25.36 billion in outflows in June, and the outflow in July was the largest since March.
US corporate bonds reported $8.78 billion in July inflows (down from $13.99 billion in June), and foreigners were net buyers of US corporate bonds for seven consecutive months. Treasury data also showed that US residents once once more sold their holdings of long-term foreign securities with net sales of $27.2 billion, compared to $50.5 billion in June.
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