From Alhambra Investments, by
A fortress against the market storms.
TIC data confirms that “reflation” captured more than just pricing sentiment. It appears to have occurred in bank balance sheet activity, and related official sector UST transactions. As to the latter, official holdings of US$ assets did decline on net in March 2017, the latest figures, including more selling of UST’s. The scale of the decline was less than we had seen in previous months. In January 2017, for instance, total net “selling” was huge at almost $49 billion, but in the past two just $5.2 billion for February and $10.7 billion in March.
On a cumulative, rolling six-month basis, this method of ad hoc central bank measures intended (largely China but not just the Chinese) to try to offset private sector “dollar” retreat was at its lowest level since the six-month period ended June…
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