Global central banks dump U.S. debt at record pace

Wednesday, August 17, 2016
By Paul Martin

by Patrick Gillespie
Money.CNN.com
August 16, 2016

Global central banks are unloading America’s debt.

In the first six months of this year, foreign central banks sold a net $192 billion of U.S. Treasury bonds, more than double the pace in the same period last year, when they sold $83 billion.

China, Japan, France, Brazil and Colombia led the pack of countries dumping U.S. debt.

It’s the largest selloff of U.S. debt since at least 1978, according to Treasury Department data.

“Net selling of U.S. notes and bonds year to date thru June is historic,” says Peter Boockvar, chief market analyst at the Lindsey Group, an investing firm in Virginia.

U.S. Treasurys are considered one of the safest assets in the world. A lot of countries keep their cash holdings in U.S. government bonds.

Many countries have been selling their holdings of U.S. Treasuries so they can get cash to help prop up their currencies if they’re losing value.

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