Monitoring Debt Held by Foreigners

I have updated this page for monitoring the U.S. debt held by foreigners. We know that when foreigners sell U.S. treasury debt, then we will see either a decline in the U.S. dollar or a rise in interest rates on treasuries. We are seeing now a decline in the U.S. dollar.

Indeed, we have seen a massive drop of debt held by foreigners in the custodial accounts.

The following chart gets updated weekly, so this is the most important chart to monitor.

Knowing that foreigners have started selling their U.S. treasuries, the U.S. dollar will have a high probability of breaking down now to 70. We are currently at 79. So prepare to see even worse to come.