Tag Archives: TIC report

An Avalanche of Treasury Debt Hit The Market In February

There are two ways to conquer and enslave a country.  One is by the sword, the other is by debt.  – John Adams

According to the U.S. Treasury TIC (Treasury International Capital) Report, foreign Central Banks reduced their holdings of U.S. Treasury bonds from $6.219 trillion in January to $6,162 Trillion as of the end of February – TIC Treasury Data.   That’s $57 billion.

Notable sellers were Japan – $14.2 billion;  China – $15.4 billion;  UK – $15.1 billion;  and Russia – $13.4 billion.

The amount of Treasury debt outstanding increased from $18.08 trillion at the end of January to $18.155 trillion at the end of February (Treasury Direct).  This was an increase of $147 billion.

Between the Treasury and Foreign Central banks, $204 billion of Treasury bonds were sold in February.  That is about 20% of the total amount of debt issued by the Treasury in 2014 (Treasury debt increased a little over $1 trillion. The question is, who the hell bought $204 billion in Treasury bonds in February?

If it weren’t for the ability of the Fed and the Treasury to print money unfettered, the United States would be in worse shape than Greece right now…