Central banks are dumping United States debt at record pace, says new data published Monday by the Treasury Department.
According to the report, central banks sold a net $17 billion and a total of $123 billion so far this year. This is the fast pace of central banks selling off U.S. debt since 1978.
In an effort to combat the global economic slowdown, Brazil, China and Russia sold off at least $1 billion in U.S. Treasury bonds in the month of March.
Experts say central banks are trying to prop up their own currencies that have lost much of their value against the greenback in 2015. By getting rid of U.S. debt holdings, central banks can receive cash to purchase their currency and prevent it from losing value.
Moreover, investors are taking their cash out of developing markets so central banks are attempting to recover those lost funds by selling their foreign reserves.
Overall, central banks aren’t interested in U.S. debt right now. The only ones that seem interested are private investors. Demand remains high for U.S. Treasury bonds, though the yields are tepid with one or two percent.
This chart from CNN Money shows the trend since the economic collapse:
Somebody must be buying it then,,,, Who?
We are buying much of our own Debt with the Money we have been printing for years.
Why would anyone not understand why other Countries are dumping our Debt. Republican reckless spending is adding Trillions to our National Debt; Printing worthless Fiat Money at the Fed – – 24/7 – – a growing cause of concern; and the Dollar is in a Swan Dive during past two or three weeks. Bottom Line; Investors are bailing on buying our Debt; because, they realize we are no longer good for it! Thus; interest rates will have to be raised to even attract a modicum of interest.