Foreign central banks dumping US debt

160516173150-us-debt-dump-780x439

http://money.cnn.com/2016/08/16/news/economy/central-banks-debt-dumping/index.html

In the first six months of this year, foreign central banks sold a net $192 billion of U.S. Treasury bonds, more than double the pace in the same period last year, when they sold $83 billion.

China, Japan, France, Brazil and Colombia led the pack of countries dumping U.S. debt.

It’s the largest selloff of U.S. debt since at least 1978, according to Treasury Department data.

“Net selling of U.S. notes and bonds year to date thru June is historic,” says Peter Boockvar, chief market analyst at the Lindsey Group, an investing firm in Virginia.

U.S. Treasurys are considered one of the safest assets in the world. A lot of countries keep their cash holdings in U.S. government bonds.

Many countries have been selling their holdings of U.S. Treasuries so they can get cash to help prop up their currencies if they’re losing value.

The selloff is a sign of pockets of weakness in the global economy. Low oil prices, China’s economic slowdown and currencies losing value are all weighing down global growth, which the IMF described as “fragile” earlier in the year.

Despite all the selling by these countries, private demand for the bonds has sky rocketed. Demand is so high that the U.S. can afford to pay historically low interest rates. The 10-year U.S. Treasury hit a record low of 1.34% earlier this year, before bouncing back to about 1.58%, currently.

———-

sell sell sell..

“The selloff is a sign of pockets of weakness in the global economy. Low oil prices, China’s economic slowdown and currencies losing value are all weighing down global growth, which the IMF described as “fragile” earlier in the year”

thats part of it..but not the total reason..

401

~ by seeker401 on August 20, 2016.

2 Responses to “Foreign central banks dumping US debt”

  1. i can point you in the right direction with regards to this..it’s like the corporate worlds worst kept secret lol. i have to gather the info and hoping it is still there but it’s as clear as daylight anyway so it shouldn’t be hard to find the info agakn

  2. […] via Foreign central banks dumping US debt — Follow The Money […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: