China Sold Second-Largest Amount Ever Of US Treasurys In December: And Guess Who Comes To The Rescue

What has been the overriding force behind East Asian countries' rapid rise?  In order to understand the symbiotic relationship between between the U.S. and East Asian countries including China, Japan and Korea, one has to see changes in the U.S. treasury (i.e., the U.S. debt) holdings.

From Zero Hedge:

While we will have more to say about the disastrous December TIC data shortly, which was released early today, and which showed a dramatic plunge in foreign purchases of US securities in December - the month when the S&P soared to all time highs and when everyone was panicking about the 3% barrier in the 10 Year being breached and resulting in a selloff in Tsy paper - one thing stands out. The chart below shows holdings of Chinese Treasurys (pending revision of course, as the Treasury department is quite fond of ajdusting this data series with annual regularity): in a nutshell, Chinese Treasury holdings plunged by the most in years, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013! This was the second largest dump by China in history with the sole exception of December 2011.



http://www.zerohedge.com/news/2014-02-18/china-sells-second-largest-amount-us-treasurys-december-and-guess-who-comes-rescue