The world central banks are dumping US treasuries
The results of recently published US treasuries statistics are frightening.
I turns out that sales of US treasuries by central banks set a new record.
Picture Source: Zerohedge
China, the largest holder with a 1 trln USD portfolio has been dumping US bonds since may. The held debt amount is at a 7 years minimum.
Picture source: Zerohedge
And now Japan joins the game. In December Japanese players reduced their protfolios by $21bn.
Looks like foregn investors are feeling uncertain about the Trump’s economical program and also about the FRS rates policy.
Selling their Treasury bonds is vital to the USA, it allows to refinance the huge debt and if the liquidity drains up, what will the US do? Maybe it’s not the time yet, but one day one of those sales will not meet enough buyers and the bubble will bust. But when, and does the US still have enough time to return the Tresuries market from current $14 trln to a volume the US could actuallty manage?