J.P.Morgan note that "this afternoon........>

US TSYS: J.P.Morgan note that "this afternoon Treasury released its monthly TIC

data on foreign transactions and holdings of US securities for May, showing

foreign investors sold $27.7bn long-term Treasuries over the month. While this

was the third consecutive month for foreign sales of Treasuries, the pace slowed

dramatically from the historic shedding that was observed over March and April.

Compositionally, the selling continues to emanate from private investors, who

shed $27.7bn in Treasuries in May, while foreign official investors bought $10bn

over the period, the first monthly net purchase since August 2018. We are not

surprised about the official buying as weekly data from the Fed indicates that

official holdings have risen close to $100bn from their local trough in April.

Turning to the geographic breakdown, the bulk of the selling came from the Euro

Area and the Cayman Islands, and the well-known hedge fund domicile has seen

over $200bn in net selling YTD. Conversely, there was smaller net buying from

Brazil, Canada, and Japan."