Zero Hedge: Russia Liquidates Its US Treasury Holdings
Last month we showed that as Trade Wars began in April, the world's central banks and other official institutions dumped more Treasuries than in any month since January 2016, some $48.3BN, perhaps over concerns of others selling first, and precipitating a sharp move higher in yields. Fast forward one month later to May, when according to the latest just released Treasury International Capital (TIC) update, in May the selling of Treasurys by official entities continued, with another $24BN sold in the month of May, when yields continued to rise and eventually hit the 2018 highs of 3.11%.
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WNU Editor: WNU predicted this Russian sell-off last month .... Gold Will Be King In Any Currency War (June 25, 2018). This sell-off has not impacted the U.S. economy or money markets .... Dollar up as Powell reinforces rate hike views, hits six-month high vs. yen (Reuters). The next country that will sell-off its US Treasuries will be China. But with the U.S. economy booming I doubt that it will have much of an impact on the financial markets.
The US dollar is going to lose its role as world reserve currency. Of course the world's top powers know this and are positioning themselves accordingly. Is the US? This cannot be changed. The goal here needs to be a "soft landing" for the US. Somehow going out of one's way to pick a fight with Russia seems like a spectacularly dumb idea right now.
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