Key Takeaways
- Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) has reportedly increased its holdings in U.S. Treasury bills to an estimated 5.6% of the entire market, reflecting a continued preference for safety and liquidity.
- The Bank of England (BoE) is moving to further reduce its Asset Purchase Facility (APF), cutting the maximum authorized size to £555 billion from £619.7 billion, signaling ongoing monetary policy tightening.
- Brazil's consumer price index (IPCA) showed a significant moderation in October, with a 0.09% month-over-month increase and a 4.68% year-over-year rise, both coming in below market expectations.
- Mexico's industrial production declined in September, falling 0.4% month-over-month and 2.4% year-over-year, with the monthly figure missing analyst estimates.
Warren Buffett's conglomerate, Berkshire Hathaway (BRK.A, BRK.B), has reportedly amassed a substantial position in the U.S. Treasury bill market, now owning an estimated 5.6% of the total, according to CNBC. This significant investment underscores Buffett's long-standing strategy of prioritizing liquidity and safety, particularly during periods of high equity valuations and global economic uncertainty. Earlier reports from March 2025 indicated Berkshire's holdings were around $300.87 billion, representing approximately 4.89% of the then $6.15 trillion T-bill market. By May 2025, this figure had grown to $314.101 billion, accounting for 5.1% of the market. The Oracle of Omaha has consistently favored short-term government debt, with more than 90% of Berkshire's substantial cash reserves parked in these instruments, often surpassing the holdings of the U.S. Federal Reserve.
Across the Atlantic, the Bank of England (BoE) has announced a further reduction in the maximum authorized size of its Asset Purchase Facility (APF), decreasing it to £555 billion from the previous £619.7 billion. This move is part of the central bank's ongoing quantitative tightening efforts, aimed at unwinding the stimulus measures implemented during previous economic crises. The BoE's Monetary Policy Committee (MPC) has consistently sought to reduce its gilt holdings through both maturing assets and active sales, emphasizing that the Bank Rate remains the primary tool for adjusting monetary policy.
In emerging markets, Brazil reported a cooling in its inflation rate for October. The Extended National Consumer Price Index (IPCA) rose by a modest 0.09% month-over-month, falling below the estimated 0.15% and significantly lower than the prior month's 0.48%. On a year-over-year basis, inflation stood at 4.68%, also below the 4.74% estimate and a notable decrease from September's 5.17%. This moderation in consumer prices could provide the Banco Central do Brasil with more flexibility in its monetary policy decisions.
Meanwhile, Mexico's industrial production data for September indicated a slowdown in economic activity. Industrial output fell by 0.4% month-over-month, missing the 0% estimate. The year-over-year figure also showed a decline of 2.4%, aligning with analyst expectations. This contraction follows earlier reports of persistent weakness in sectors such as mining and construction, contributing to a challenging outlook for the Mexican industrial sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.