US and UK Central Banks Operating Shadow Monetization Program

Zero Hedge has been closely following the US treasury market for a while now and has noticed an aberration that can not be explained.

The UK’s total holding of treasuries has nearly doubled in less than half a year, while China has reduced its holdings to the lowest point since June of 2009 and Japan has also substantially cut its holdings.

“Treasury holdings increased from $3,957 billion to $3,964 billion almost exclusively as a result of ongoing exponential UK accumulation.”

Since we know its not hedge funds doing the buying, it begs the question of exactly who is doing the buying over in the UK.

Zero Hedge reports:

Yet in what is (and continues to be) the most perverse observation, that proceeds without any questions from the mainstream media, the otherwise broke UK, once “bought: a stunning amount of Bonds, or just over $28 billion in the month of May, consisting of $27 billion in Bonds, and $1.3 billion in Bills. The “UK” accumulation patterns continues growing in an exponential pattern, and the country which owned “just” $180 billion in USTs in December, has doubled its holdings to $350 billion in less than half a year.

Look for UK holdings of US treasuries to enter orbit soon as the rest of the world dumps the dollar.