TIC Report - Treasury International Capital

The totals are increasing but not enough to make up for the increasing total of the
current account deficit which is mostly the trade account, which is in deficit. Between the current, trade and budget deficits, the US is borrowing the best part of a trillion USD a year from the rest of the world to maintain its current standard of living. How long do you think the rest of the world will keep lending an irresponsible spendthrift this amount of "money"? It looks like that lending is slowing down. A negative for the USD. No wonder the USD, notes and bonds are toppy/topping. I would guess that this report was released to the special few a few days before its official release date, if I had to guess from the charts of the USD, notes and bonds.

Jim Sinclair says that the TIC report was $53.6 billion below the lowest published expectation. Expectations are important. They can start momentum in markets which is what really moves markets. I think that momentum is already underway in gold and silver. Underway to the upside.


MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES
(in billions of dollars)

HOLDINGS 1/ AT END OF PERIOD

2005 2005 2005 2005 2004 2004
Apr Mar Feb Jan Dec Nov
COUNTRY Series V Series IV

Japan 685.2 679.5 680.3 679.3 689.4 692.5
Mainland China 230.4 223.5 224.9 223.5 222.9 220.2
United Kingdom 3/ 125.2 122.2 111.6 101.1 101.0 89.8
Caribbean Banking Centers 4/ 124.6 137.2 104.7 94.2 71.4 75.7
Taiwan 70.6 71.1 68.5 68.3 67.9 67.1
Germany 60.8 56.0 53.0 53.8 50.2 52.6
OPEC 60.6 62.2 67.6 67.0 62.1 63.0
Korea 55.9 57.1 53.1 53.6 55.0 55.3
Hong Kong 47.2 45.2 45.2 45.3 45.1 42.4
Luxembourg 45.3 42.2 42.9 41.7 41.6 40.6
Switzerland 43.3 44.1 44.3 40.8 42.1 41.9
Canada 42.1 38.4 38.0 35.4 33.3 32.2
Mexico 31.6 32.5 33.0 33.5 32.8 33.5
Singapore 30.0 30.7 29.2 29.9 30.3 30.4
Norway 29.8 16.9 33.8 35.1 30.4 32.6
France 22.3 25.1 27.2 21.2 20.0 19.5
India 18.0 18.4 18.1 15.9 15.0 15.5
Netherlands 17.0 18.1 16.5 16.8 17.8 16.3
Sweden 16.8 16.9 16.3 15.8 16.9 16.0
Brazil 16.2 14.7 13.6 13.8 15.1 15.3
Belgium 15.7 15.3 16.7 16.8 17.0 16.8
Italy 14.6 14.5 13.7 13.0 12.8 12.8
Ireland 13.1 17.2 17.8 15.6 16.3 16.9
Poland 11.9 11.4 10.6 10.2 10.8 10.8
Israel 11.6 14.6 14.3 14.9 13.7 13.2
Thailand 11.1 12.1 13.0 13.3 12.5 12.8
Turkey 10.7 11.4 10.4 12.9 12.0 14.5
All Other 128.5 128.0 128.0 125.8 128.8 127.4
Grand Total 1990.1 1976.5 1946.3 1908.6 1883.9 1877.6

Of which
Foreign Official 1236.1 1227.9 1242.5 1238.3 1232.7 1237.1
Treasury Bills 230.1 235.8 235.5 242.6 244.6 256.0
Treasury Bonds&Notes 1006.0 992.0 1007.0 995.7 988.1 981.1

Department of the Treasury/Federal Reserve Board
June 15, 2005
1/ Estimated foreign holdings of U.S. Treasury marketable and nonmarketable bills, bonds and notes
reported under the Treasury International Capital (TIC) reporting system are based on annual
Surveys of Foreign Holdings of U.S. Securities and on monthly data.
2/ Denotes series break: Series IV positions data for this month and prior periods to June 2003 are based on the
end-June 2003 annual Survey; Series V positions data for this month and subsequent periods are based on preliminary
results from the end-June 2004 annual Survey.
3/ Includes Channel Islands and Isle of Man.
4/ Includes Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, and Panama.