Eurodollar University Foreigners Sold a MASSIVE Amount of Treasuries (Here's What You Must Know)
Dec 23, 2025
Foreigners dumped a staggering $61.2 billion in U.S. Treasury assets in October, raising eyebrows about America's economic stability. This isn't just a reaction to politics or inflation; it reveals deeper eurodollar mechanics. The surge in repo rates and the Fed's facility usage highlights deflationary pressures and credit issues. Jeff connects private-credit failures to increased dealer risk aversion. He explores historical eurodollar crises, hinting that more monetary turbulence could be on the horizon. Buckle up for the implications!
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October Treasury Sales Signaled Eurodollar Stress
- Foreign selling of $61.2bn in long-term U.S. Treasuries in October signaled eurodollar monetary stress, not political rejection of U.S. debt.
- Jeff Snider argues this proves Federal Reserve bank reserves were irrelevant to that stress and dealer behavior mattered more.
Cockroaches And Credit Frauds Triggered Tightness
- October's turmoil followed shocks like First Brands, Zions, Western Alliance, Primalend, and hedge-fund redemptions that spooked dealers.
- Those specific 'cockroaches and garbage lending' examples explain why repo rates and Fed facility use spiked.
Bank Reserves Aren't The Real Liquidity Engine
- QT (balance sheet runoff) is not the same as monetary tightening; bank reserve levels are immaterial in normal operation.
- Snider emphasizes eurodollar banks and money dealers, not central bank reserves, determine liquidity and circulation.