Russia dumps US debt, reducing holdings to lowest level in a year

Latest news

    The Central Bank of Russia has sold $3.1 billion in US Treasury bills as of February, reducing its investment in American debt to the lowest level since March last year.

    Moscow still occupies the 16th position among the largest holders of US government bonds. Russia has cut its holdings for the third consecutive month.

    Read more

    Russia & China dumping US treasuries

    Russian Finance Minister Anton Siluanov said in February that Russia is not sticking to American debt and can replace it if it finds an adequate substitution elsewhere. “We are ready to invest in the securities issued by other sovereign states, the main thing is that they should be low-risk and accordingly bring income,” Siluanov said at the time.

    China remains the largest buyer of US debt, increasing its holding by $8.5 billion to $1.18 trillion in February. Analysts say China can use its vast holdings of US treasuries as a bargaining chip in the trade dispute with President Donald Trump’s administration.

    However, analysts doubt Beijing would start dumping American treasuries. “It is more effective as a threat. If they sell, they have no threat. It would only escalate the situation and eliminate their leverage,” according to bond investor Jeff Gundlach.

    Global markets are still awaiting China’s reaction to the bilateral trade barriers imposed in March, since the data from the US Treasury comes with a two-month delay.

    “That’s more of a slow-burning story. It’s a bit too soon for any tariff talk to have an impact of China’s Treasury holdings,” said Gennadiy Goldberg, interest rates strategist at TD Securities in New York, as quoted by Reuters.

    View the original article: https://www.rt.com/business/424367-russia-dumps-us-treasuries/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

    For more stories on economy & finance visit RT’s business section

    In the same category are

    Trump blasts Kavanaugh accuser, says if alleged attack was that ‘bad,’ charges would have been filed President Trump attacked the woman accusing Supreme Court nominee Brett Kavanaugh of sexual assault in a tweet wondering if the alleged ‘attack’ was s...
    Fitch slashes global economic growth forecast over US-China trade war International rating agency Fitch has downgraded its 2019 global GDP forecast. The worsening trade conflict between Washington and Beijing is behind t...
    Ukraine brags its airborne troops captured US HQ during exercise in Germany A Ukrainian airborne troops company have blindsided NATO troops during a joint military exercise, capturing an American HQ and a team of Italian comma...
    Russia could gain from trade wars by cornering new markets – economy minister Trade wars between the United States and China could benefit Russia, according to the Russian Economic Development Minister Maksim Oreshkin. With tari...
    Try this on for size: Spain mulls charging shoppers for fitting clothes in-store The government of a Spanish region is proposing that customers be charged to use changing rooms to try on clothes in an unorthodox bid to tackle onlin...
    UK boasts of securing its skies from ‘aggression’… by peeking at Russian bombers in int’l airspace The Royal Air Force has fearlessly thwarted yet another act of ‘Russian aggression’ in the British domain, by escorting a couple of Tu-160 bombers fly...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.