BRICS Nations: China, Brazil, Saudi Arabia Sell $17.4 Billion US Treasuries in a Month

BRICS Founders China & Brazil, Joined by Saudi Arabia, Reduce US Treasury Holdings

Significant Reduction in US Treasury Holdings by BRICS Nations and Others

Recent data from the U.S. Treasury Department reveals a decline in China's Treasury securities from $835.4 billion to $821.8 billion in July, marking a $13.6 billion drop.

Brazil, a BRICS nation, also reduced its holdings by $2.7 billion, bringing it down to $224.7 billion from $227.4 billion.

Saudi Arabia's holdings saw a decrease of $1.1 billion, settling at $109.2 billion.

India, a foundational BRICS member, experienced a dip in its treasury assets from $235.4 billion to $233.1 billion. The United Arab Emirates, soon to be a BRICS member, also reduced its holdings by $300 million, ending at $64.9 billion.

Adam Kobeissi, the chief editor of The Kobeissi Letter, emphasizes the significance of this trend. He points out that China has sold nearly $500 billion of US Treasuries over the past decade. The reasons could range from an economic slowdown to strategic shifts.

Recent events in the bond market, coupled with a surge in Treasury yields, have caused financial disruptions. A robust jobs report further intensified the situation, pushing the 10-year yield to 4.85% and the 30-year yield past 5%.

CME’s FedWatch tracker indicates that 72.9% of investors anticipate the Fed maintaining the current interest rates, while 27.1% foresee a 25 basis point hike next month.

Oct 07, 2023

1 0