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But we saved everything 🙂.
Brad Setser points out that China has decreased its holdings of Treasuries in U.S. custodians to an 18-year low.
He clarifies that the headline should specifically reference Treasuries held in U.S. custodians, as TIC data does not include securities China holds in offshore custodians.
Setser has previously noted that China’s reported current account surplus has diverged from customs data, with a notable shift in 2021 and 2022, according to his earlier observations. He has also observed that China needs large-scale exports to balance its increased supply, raising questions about trade balances in global markets in a separate analysis. These issues provide additional context for China’s evolving approach to managing its reserves.