Yello Pradisers! Founding BRICS nations, China and Brazil, along with the recent addition, Saudi Arabia, have significantly reduced their holdings of US Treasury securities. The U.S. Treasury Department’s latest data reveals a notable decline in these holdings over a single month.

📰 China’s Decline

China, a major holder of US Treasuries, reduced its holdings by a whopping $13.6 billion, bringing it down from $835.4 billion at the beginning of July to $821.8 billion by month-end.

📰 Brazil & Saudi Arabia Follow Suit

Brazil, another BRICS stalwart, trimmed its holdings by $2.7 billion, while Saudi Arabia made a cut of $1.1 billion.

India and the United Arab Emirates, both BRICS members, also followed the trend, reducing their treasury holdings in the same period.

📰 Analyzing the Trend

Adam Kobeissi, a prominent financial analyst, points out that China has offloaded nearly $500 billion of US Treasuries over the past decade. He suggests potential economic slowdowns or strategic shifts as possible reasons for this aggressive sell-off.

📰 Impact on the Bond Market

The massive sell-off in the bond market, coupled with a surge in Treasury yields, has sent ripples through the financial world. A recent strong jobs report further exacerbated the situation, pushing the 10-year yield to 4.85%.

📰 Future Interest Rate Speculations

The CME’s FedWatch tracker indicates that a majority of investors (72.9%) anticipate the Fed to maintain the current interest rates in the upcoming month. However, 27.1% believe there might be a hike by 25 basis points.

ParadiseTeam🌴