$17,400,000,000 in US Treasuries Dumped by BRICS Nations In 1 Month

It has been revealed another important move made by the BRICS nations. Check out the latest reports about this below.

Recently, it has been observed that China and Brazil, the founding members of BRICS, as well as Saudi Arabia, a newcomer, have been quietly reducing their holdings of US Treasury securities.

According to the latest figures from the US Treasury Department, China’s ownership of Treasury securities decreased from $835.4 billion to $821.8 billion between the beginning and end of July, resulting in a decline of $13.6 billion.

Similarly, Brazil reduced its Treasury holdings by $2.7 billion during the same period, from $227.4 billion to $224.7 billion.

Saudi Arabia also reduced its holdings from $108.1 billion to $109.2 billion, resulting in a reduction of $1.1 billion. Furthermore, India, another founding member of BRICS, saw its treasury holdings decrease from $235.4 billion in June to $233.1 billion in July.

The United Arab Emirates, which is soon to become a member of BRICS, decreased its treasury holdings from $65.2 billion in June to $64.9 billion in July, selling off $300 million.

Adam Kobeissi, the editor-in-chief of The Kobeissi Letter, believes that this sell-off is now too significant to ignore. China has sold nearly $500 billion of US Treasuries since its peak a decade ago.

There are a few reasons for this, including the potential slowdown of their economy and a broader strategic shift. Regardless, this is a trend that should not be overlooked.

Recently, a bond market sell-off and a rapid rise in Treasury yields have led to financial chaos.

On Friday, a stronger-than-expected jobs report added to the chaos, with the 10-year yield touching a high of 4.85% and the 30-year crossing 5%.

The online publication the Daily Hodl notes the fact that according to the CME’s FedWatch tracker, “72.9% of investors believe the Fed will keep interest rates where they are next month, while 27.1% believe the Fed will further increase rates by another 25 basis points.”