Russia Does Not Want To Hold U.S. Debt

CNBC: Russia cuts Treasury holdings in half as foreigners start losing appetite for US debt

* Foreign governments have pared back their holdings of U.S. debt, reducing the total by nearly $10 billion in March and April.
* Russia was notable among the group stepping back with a nearly 50 percent cut.
* The U.S. government needs buyers of its debt as the Fed continues to reduce its holdings and the budget deficit is projected to surge in coming years.

Foreign governments pulled back their purchases of longer-term U.S. debt as trade tensions escalated around the world.

The declines are relatively small so far for notes and bonds — just shy of $5 billion each for March and April, the most recent months for which Treasury data are available — but it signals a potentially troubling trend.

"We need all the help we can get in the search for buyers of US Treasuries due to the enormous supply coming our way in the next few years," Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note. "Our stance on trade with our trading partners could very well play into this in coming months and quarters, especially with China, the largest owner of US Treasuries."

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WNU Editor: This doom and gloom on not finding any buyers for U.S. debt is because the Russians have bailed out of the U.S. debt markets. Is this serious .... for now the answer is no. Interest rates are going to rise .... and these buyers will come back. As for the Russians .... the government is investing its cash into metals like gold. More here .... Exactly why is Russia buying gold as of late? (Global Bullion).