China Ditching Dollar?


Treasury data on Friday will reveal whether China is really selling some of its dollar holdings. As a new music video shows Jay-Z thumbing through a wad of euros, many investors worry that the Greenback’s woes are just beginning.

The TIC data, as it’s known, is essentially a disclosure of which foreign countries own U.S. debt. Last month investors were spooked as the data showed an outflow of $69 billion. But Tim Seymour of Seygem Asset Management is skeptical of a “doom and gloom” scenario when the data is released Friday morning.

Last month’s data showed that the Chinese were actually net buyers of U.S. agency securities, he said. And the fact that Treasury yields are rallying to highs not seen since early 2005 indicates a “flight to quality rally.” Seymour called that a validation of the U.S. dollar for foreign holders.

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Trader disclosure: On Nov. 15, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke owns (COH), (SWY), (HAS), (INTC), (ATVI); Najarian owns (MER) and is short (MER) options, owns (AMTD) options, owns (BHP) options, owns (C) options, owns (GS) options; Finerman’s firm owns Russell 2000 Puts, S&P 500 Puts, is short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman’s firm owns (BEAS) Options, (COV), (KSS), (PLCE), (TYC); Finerman and her firm own (GS), (CROX), (HD), (KFT); Finerman’s firm is short (LEH) and owns (LEH) puts

Tim Seymour owns (UST); Seygem Asset Management owns a Morgan Stanley emerging markets currency basket