Not exactly selling America…

The number of US Treasuries held by foreign investors was near record highs in April, even as US President Donald Trump’s Liberation Day tariffs triggered one of the steepest sell-offs in the asset class in over two decades, Bloomberg reports. Foreign holdings came in at USD 9.0 tn — just shy of March’s all-time high following sales of US bonds and notes, according to US Treasury data. This came despite concerns over a wave of outflows from American debt and equity markets following the tariff announcements.

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IN CONTEXT- Trump’s tariff announcement in early April triggered a historic sell-off, with Treasuries posting their worst weekly performance in over 20 years. A weak 20-year bond auction in May added to the sell-off, though 30-year and 20-year offerings later saw better take-up.

But no mass exit: Despite this, official institutions were net buyers of long-term Treasuries. Foreign investors were net sellers of US agency bonds and equities, but increased their exposure to long-term corporate debt, suggesting selective rebalancing rather than a broad retreat.

Big buyers didn’t blink: Japan, still the top holder, increased its holdings by USD 3.7 bn to USD 1.1 tn. The UK added USD 28.4 bn, overtaking China for the number-two spot with USD 807.7 bn. Belgium — often seen as a proxy for Chinese custodial accounts — rose USD 8.9 bn to USD 411.0 bn.

China pulled back, Canada dumped: China’s holdings dropped by USD 8.2 bn to USD 757.2 bn, continuing a multi-year retreat. Canada posted the largest decline, offloading nearly USD 57.8 bn to bring its total to USD 368.4 bn. The Cayman Islands — a hub for hedge funds — also reduced holdings by USD 7.0 bn.

“The ‘Sell America’ narrative is an over-exaggeration,” Morgan Stanley’s Vishal Khanduja told Bloomberg elsewhere, though warning of “slow and bumpy [USD] depreciation” ahead. Jamie Patton of TCW Group also pushed back on talk of capital flight, saying there’s a “big difference between valuation and the reserve status of the USD or Treasuries as a de facto safe asset.”

Concerns that US Treasuries’ “safe haven status” is in jeopardy still abound, with the latest red flag being the lack of a rally during the Israel-Iran flare-up — which would typically be a haven bid moment.

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% on Thursday on turnover of SAR 6.4 bn. The index is down 11.9% YTD.

In the green: Alistithmar Reit (+10.0%), Seera (+8.0%) and Banan (+7.1%).

In the red: SPCC (-5.2%), Ataa (-3.4%) and Leejam Sports (-3.0%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.1% on Thursday on turnover of SAR 20.1 mn. The index is down 16.8% YTD.

In the green: Anmat (+9.1%), Riyal (+8.3%) and Almuneef (+6.5%).

In the red: Leaf (-9.2%), Rawasi (-8.6%) and Knowledge Tower (-8.1%).

CORPORATE ACTIONS-

Homegrown travel giant Seera Group Holding’s BoD recommended an 8.65% capital reduction to SAR 2.74 bn through the cancellation of some 26k shares, arguing a relative capital excess to the company’s needs, the company said in a Tadawul disclosure.

SouthernProvince Cement Company’s general assembly approved a SAR 98 mn dividend payout for 2H 2024 at SAR 0.70 per share starting 1 July, according to a disclosure to Tadawul.

Natural Gas Distribution Company’s general assembly approved a SAR 2.5 mn dividend distribution for FY 2024 at SAR 0.50 per share starting 7 July, according to a disclosure to Tadawul.