Treasury Department data shows Russia is offloading its US debt holdings at breakneck speed

[mfcorey1]

The Russian government, previously considered a "major" holder of U.S. debt, has been steadily — and sharply — paring down the vast majority of its holdings of U.S. Treasury securities.

Russian holdings of Treasury securities declined 84 percent between March and May, falling to $14.9 billion from $96.1 billion in just two months, according to a U.S. Treasury Department report released July 18.

Moscow's ownership of U.S. debt is eclipsed by that of China and Japan, both of whom actively manage their currencies and hold more than $1 trillion each in Treasuries on their books. In fact, China's vast holdings have been cited by some observers as a "nuclear option" in a Sino-American trade war, with the world's largest economy seen vulnerable to Chinese selling that could drive up yields.

However, Russia's moves in the market come amid a growing furor over Moscow's suspected meddling in the U.S. general election in 2016, which has led to sanctions on its economy. Russia's sell-off of U.S. debt in May also coincided with the benchmark 10-year Treasury note yield, which moves inversely to the note's price, briefly touching its highest level since 2011.

Though the 10-year yield has since retreated from levels around 3 percent, its movements have implications for other financial instruments like mortgages rates and auto loans, which are often based on its rate.

The yield on the 10-year Treasury note has subsequently stabilized, trading at 2.958 percent.

Bond experts like Raymond James's Kevin Giddis pointed to a flood of Treasury supply for higher long-term rates back in May. However, most of the excess likely came from historically large Treasury auctions to help pay for Washington's new tax cuts and spending bill, not Moscow's selling.

https://www.msn.com/en-us/money/markets/treasury-department-data-shows-russia-is-offloading-its-us-debt-holdings-at-breakneck-speed/ar-BBLdsLq?li=BBnb7Kz&ocid=mailsignout

[brush]

1. Uh-oh! Something's about to happen.

Didn't they do something similar before they invaded Crimea?

[DetlefK]

2. Russia needs the money. There has just been a protest about the bad russian economy.

Putin has raised the retirement age from 60 to 65 last week. You only do that when social-security runs out of money.

[Achilleaze]

3. "Heh heh." - Comrade Dirty Donny* (R)

with the submissive and treasonous collusion of the KGOP republicans and russians, they are about to weaken America further. kremlin overjoyed at republican submissiveness.

* aka republican Draft-Dodger-in-Chief

[no_hypocrisy]

4. Not good. Now there's an excess of American Debt that may not be gobbled up.

And with that $1.3 trillion added to The Deficit, there's an expectation that someone should buy our securities. Doesn't mean it will happen.

[PSPS]

6. Hardly

First, Russia's holdings are insignificant and, as the article states, their sale didn't have any effect on yields/rates. Second, also as stated in the article, the large Treasury auctions were required to finance trump's tax cuts for the wealthy, not the insignificant russian holdings. In any case, the auction was fully sold without any trouble whatsoever. Treasury bonds have never had any trouble selling. They are still the most-preferred and safest instrument.

[empedocles]

5. Big money movements need to be watched

[zentrum]

7. This is scary.

He's going to crash our economy.