‹ BackHN Continuity

Thread

US Treasuries Have Become Unappetizing for Foreign Central Banks and Governments

152 points · 132 comments · iamnothere

  1. 1over137 · · focus · HN ↗
    US everything has become unappetizing for everyone outside the US.
    1. carefree-bob · · focus · HN ↗
      This is nonsense. The rest of the world holds 9.7 Trillion in Treasuries and this amount increased by $500 billion over the last year.

      So the opposite of this article is true. You can get all the data from the Z.1 release.

      Please don't take these types of flame bait articles seriously or try to spin up an entire world view based on them as you will end up not only directionally wrong, but believe in the exact opposite of reality.

      FYI, that $500B increase in treasury holdings is not the whole picture, there are also the agencies (housing mortage backed securities guaranteed by the govt) and foreign holdings of those also increased by $70 billion over the last year, and are about 1.5 Trillion.

      1. bflesch · · focus · HN ↗
        Institutional investors are very slow to adapt, so I wouldn't take their continued investment as a positive signal. The sentiment shift is real, and a lot of goodwill has been spent.

        It's basically divide and conquer on a national scale tearing down the democratic world police and the democratic systems it supported.

        1. quickthrowman · · focus · HN ↗
          There are an excess of dollars floating around internationally and only so many ‘risk free’ dollar-denominated assets. US Treasuries will continue to be purchased. There are plenty of buyers who are obligated to buy risk-free assets and US Treasuries are the vehicle of choice.
Open on Hacker News to reply ↗

Unofficial Hacker News client; not affiliated with Y Combinator.