Monday, May 19, 2014

Nervous Investors Move to Bonds just like Belgium?

I have run across data that belongs in the category of strange and unusual in the May 15th publication of the TIC data (Treasury International Capital Report).

The strange aspect of the data is that in the published figures, the tiny country of Belgium with a GDP of only $509B, somehow managed to purchase $40.2B in Treasury securities in the month of March.  The purchases follow a six month barrage of purchases by Belgium in which $214.6B in Treasuries were added to security accounts held in the country.  Based on the data, Belgium has escalated to third, behind only Japan and China (mainland) in the rankings of foreign countries which hold the most U.S. Treasury reserves.




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