Also China sells US treasury bonds speedily and its Foreign Exchange level dwindles

Also China sells US treasury bonds speedily and its Foreign Exchange level dwindles

Central banks are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the USD 12.8 trillion Treasury market since the financial crisis

Sales by China, Russia, Brazil and Taiwan are the latest sign of an emerging-markets slowdown that is threatening to spill over into the U.S. economy. Previously, all four were large purchasers of U.S. debt.

While central banks have been selling, a large swath of other buyers has stepped in, including U.S. and foreign firms. That buying, driven in large part by worries about the world’s economic outlook, has helped keep bond yields at low levels from a historical standpoint.

The following two graphs show both developments, selling U.S. Treasury Bonds and China’s dwindling Foreign Exchange Reserves

 Also-China-sells-US-Treasury-Bonds-08-10-_2015_12-23-23

Dwindling-Forex-Res.-in-China-08-10-_2015_12-20-16

 

www.wsj.com


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