Chinese accounts reduced their holdings of long-term U.S. Treasuries substantially in November, down $66.4 billion in the month to $1.05 trillion. Japan accounts also reduced their holdings, down $23.3 billion and still ahead of China at $1.11 trillion. Third place still belongs to Ireland, way back at $275.2 billion followed by the Cayman Islands at $260.6 billion.
Net buying of Treasuries was otherwise flat and foreign accounts were big buyers of government agency bonds during the month. Agency buying together with selling of foreign bonds by U.S. accounts made for a respectable net inflow of $30.8 billion in long-term securities in November. Aside from agencies, there was little net change in monthly flows for U.S. securities.
With trade wars the talk, Chinese selling of U.S. Treasuries and stepping back at auctions could become factors for the outlook. This set of data, the Treasury International Capital report, is the place to keep watch for developments.