Foreigners Sell U.S. Treasuries In April

Reuters: Foreign selling of U.S. Treasuries in April was most since 1978

Foreign investors sold a record amount of U.S. Treasury bonds and notes for the month of April, according to U.S. Treasury Department data on Wednesday, as investors priced in a few more rate increases by the Federal Reserve this year.

Foreigners sold $74.6 billion in U.S. Treasury debt in the month, after purchases of $23.6 billion in March. April's outflow was the largest since the U.S. Treasury Department started recording Treasury debt transactions in January 1978.

The U.S. dollar rises when rate hike expectations increase, but didn't rise in April, it rose in May (along with rate hike expectations).

When capital is flowing out of China, they are forced sellers of USTs and the market views this negatively, leading to higher prices for USTs and USDCNY, leading to more capital outflows. The operative cycle at the moment.