Tuesday, September 27, 2016

Why Are Central Banks Dumping US Treasuries ???

They’ve long been one of the most reliable sources of demand for U.S. government debt.

But these days, foreign central banks have become yet another worry for investors in the world’s most important bond market.

Holders like China and Japan have culled their stakes in Treasuries for three consecutive quarters, the most sustained pullback on record, based on the Federal Reserve’s official custodial holdings. The decline has accelerated in the past three months, coinciding with the recent backup in U.S. bond yields.

You can read the rest @
http://www.bloomberg.com/news/articles/2016-09-25/u-s-bond-market-s-biggest-buyers-are-selling-like-never-before

I'm not an economist, but it seems to me this is not good for the US or for the petrodollar. Perhaps the run on treasuries is a reaction to the war on the petrodollar rather than a direct attack on it:

http://sainthoward.blogspot.com/2013/11/the-end-of-petrodollar.html

Whatever the case, I think we'll see a culmination in the 2017-2020 time frame. Good luck, whoever our next President is. Financial calamities will be your greatest challenges.

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