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In reply to the discussion: Japan ain't playing. Trump threatened them with tarriffs and now they are offloading their US treasury bonds. Ooops [View all]mahina
(19,608 posts)But as far as I read down to mention Japan’s purchasing in January
https://www.barrons.com/articles/treasuries-foreign-sell-gold-765ce81f
Foreigners Dump U.S. Treasuries. Here’s Who Did the Most Selling.
Investors abroad sold longer term Treasuries for three consecutive months, a sign of central bankers reducing their reliance on the U.S. as a financial buffer.
In January, foreigners sold a net $13.3 billion of U.S. notes and bonds that had more than one year to maturity, the latest Treasury data show. It comes after $49.69 billion was sold in December, following sales of $34.41 billion in the month of U.S. elections, November. Global central banks represent a big chunk of foreign demand.
Before the back-to-back net selling of the world’s safest debt, foreigners had kept buying for 15 straight months.
The largest net seller in January was Canada. The U.K. was the largest buyer in January, after having been the largest net seller in December. Norway and Japan were the second and third largest net buyers in January, respectively, Goldman said in a note.
The rationale for selling can be explained in two ways: Threat of sanctions, freezing of foreign assets, and tariffs work because the role U.S. and its currency plays in the financial machinery. Central banks working to shield their own economy from any potential U.S. punitive action in the future could be reducing their use of dollars. To buy Treasuries, central banks exchange their own currency for dollars. To sell, they do the reverse.
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