Friday, February 21, 2014

China "suddenly" abandoned U.S. bonds

By buying foreign counterparts of U.S. Treasury bonds in December statistics were quite dire. Although in December the broad market index S & P500 shares hit records , major investors panicked strongly about barrier interest rate at 3% – the analysts TeleTrade.


Moreover, it was in December was decided to reduce the Fed’s quantitative easing program , which is also pretty hard hit quotations and demand for 10 -year bonds . As a result , the United States followed by bonds mass sale .


The most active of these sales were in Chinese . But Celestial is the number one foreign holder of U.S. debt in the world ! As far as it was unexpected – a moot point . China in December just started regular intervention in the market of precious metals and has consistently increased gold reserves . Thus, it was possible to predict the liking of the investor.


In addition, in early December , the Chinese regulator made ​​it clear that the expansion of economic interests – the main prospect. Although he did not specify exactly how they’re going to do it. As a result , China ” leaked ” about $ 48 billion of bonds and stocks fell to the lowest point in March 2013 . It is the second largest sale in the history of the part of China , – experts say TeleTrade.


Also sunk investments in U.S. bonds and by the second carrier – Japan. Reduction amounted to $ 4 billion in December.


Surprisingly, the number one buyer was Belgium . It is not the seller and the buyer. It looks rather strange, since the EU , burdened with their own problems and debts, suddenly decided to help America. Such movement and reformatting the market , it can mean fast growth in overseas economies and the emphasis is exactly that. Indicators and statistics – it’s certainly good, but for the formation of a global movement directions need to know and anticipate the interests of those who this market forms .


Interestingly, the investments in trezheris Japan (foreign holder trezheris number 2 in the world) also slipped . Reduction amounted to $ 4 billion in December.


And the most interesting – the buyer trezheris number 1 ( seller and buyer ) was unexpectedly Belgium . Thus, the EU plagued own debts, suddenly , quite unexpectedly decided to come to the aid of America …



China "suddenly" abandoned U.S. bonds

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