MONEY FLOWS FROM ABROAD FOR US GOVERNMENT SECURITIES. Shopping starts again.
Falling dollars with white background, moving money
Despite inflationary fears, even after Yellen's appointment to the US Treasury and the announcement of powerful aid policies, there is a lot of excitement and interest in the Star and Stripe government bond market.
Starting with the private operators there was a strong inflow of capital that was invested
Central banks also bought US government bonds, but they did so for four straight months before November, while in November they lightened their exposure:
What did the two great oriental holders of American debt: Japan and Cin. To some surprise they behaved the opposite of what you might think:
China reversed a long-standing selling trend and started buying some US government bonds again.
It must be remembered that government bonds also serve to stabilize the currency. The Chinese purchase may also have been a move to avoid an excessive revaluation of the Yuan.
Japan's position is different:
Japan, on the other hand, eased its dollar position in 2020. Fears of excessive yen devaluation? Open market operations? Fears of a devaluation of the dollar.
However, US government bonds are far from out of business.
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The article MONEY FLOWS FROM ABROAD FOR US GOVERNMENT SECURITIES. Shopping starts again. comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/flussi-di-denaro-dallestero-per-i-titoli-di-stato-usa-ricominciano-gli-acquisti/ on Wed, 20 Jan 2021 07:00:18 +0000.