US government bonds – a downward trend is just around the corner.
No matter how much there is talk about the insolvency of the economy of the United States of America and its proximity to collapse, US government bonds still remain one of the most attractive investment instruments.
Moreover, these securities are mainly used by Central Banks to create reserves that stabilize national currency units.
Recently, the yield on government bonds has increased significantly and reached 1.734%, in fact this is the maximum for 2016.
It would seem that an increase in yield clearly leads to an increase in price, but despite this, Russia and China began to gradually reduce the share of this type of securities in their reserves.
The Russian portfolio lost weight from 89.1 to 76.5, that is, by 12.6 billion, while China sold bonds worth $28.1 billion. It is clear that these amounts are quite insignificant, but still they can serve as the first bell to the beginning of a mass sale and the formation of a downward trend.