Treasury holding statistics and dollar review

Latest data from US treasury suggests that China kept losing its grip over US dollar and Treasuries.

• Japan now stands as the top foreign country holding highest share of US treasuries. Japan's total holding of US government's debt has rose to $ 1.224 trillion, up from $1.21 trillion a year ago. China now stands second in position with $1.223.7 trillion.
  
  
• Data shows that US dollar's and treasuries' appeal has gone up for oil producing economies. Despite big fall in oil price, oil exporting countries have increased their net holdings of US treasuries by $53 billion in last one year.

However FED is now the fate holder for both treasuries and US dollar due to quantitative easing program. Giving it more power over the fate of these.

• Federal Reserve holds about $2.5 trillion worth of treasuries and at some point would choose to divest it.

Overall data shows demand for Dollar and treasuries remain large from foreign as fund managers of real money chase higher yields in US.

• Over seal central banks, insurance companies, pension funds, sovereign wealth funds now hold about $6.16 trillion of treasuries, up from $5.89 trillion a year ago. However their holdings are down from $6.21 trillion in January.

Despite demand, warnings remain plenty for short term traders.

• Fund managers across world are bullish both on treasury yields and dollar, however they won't be providing price support in the short term.
  
  
• Short term traders should now be careful over additional volatility arising from extreme positions in the market.
  
  
• Dollar position remains extremely vulnerable to change in yield differentials from European side. This might remain so, unless treasuries start showing signs of rebound.

Dollar index is trading at 98.03, down -0.37% today so far, traded as low as 97.86 intra day.