
© Thinking Aloud/KJN
China and Japan - the two main holders of the US Treasury securities - have trimmed their ownership of notes and bonds in August, according to the latest figures from the US Treasury Department, released on Tuesday.
China's holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines as the world's second-largest economy bolsters its national currency amid trade tensions with the US. China remains the biggest foreign holder of US Treasuries, followed by long-time US ally Japan.
Tokyo cut its holdings of US securities to $1.029 trillion in August, the lowest since October 2011. In July, Japan's holdings were at $1.035 trillion. According to the latest figures from the country's Ministry of Finance,
Japanese investors opted to buy British debt in August, selling US and German bonds. Japan reportedly liquidated a net $5.6 billion worth of debt.
Liquidating US Treasuries, one of the world's most actively-traded financial assets, has recently become a trend among major holders.
Russia dumped 84 percent of its holdings this year, with its remaining holdings as of June totaling just $14.9 billion. With relations between Moscow and Washington at their lowest point in decades, the
Central Bank of Russia explained the decision was based on financial, economic and geopolitical risks.
Comment: Compare this appeasing SA trajectory with the instantaneous and unending blame games on Russia. Interesting how posturing and politics dictates the excuse for truth that fits a need.