US Treasuries - Downtrend is just around the corner.
No matter how much talk there is about the insolvency of the US economy 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 currencies.
Recently, the yield on government bonds has increased significantly and reached 1.734%, which is actually the maximum for 2016.
It would seem that an increase in yield would definitely lead to an increase in price, but despite this, Russia and China have begun to gradually reduce the share of this type of security in their reserves.
The Russian portfolio shrank from $89.1 billion to $76.5 billion, a loss of $12.6 billion, while China sold $28.1 billion in bonds. While these amounts are relatively small, they could still serve as a warning sign of widespread selling and a downward trend.
