Did Russia dump all its U.S. Treasuries in May?

Russia - Sep 06 2018
  • #sovereign debt

Russia has never held as many U.S. Treasuries as China and Japan, but the country was in a good position on the list of Treasury holders (Treasury International Capital list or TIC’s list), that is, until very recently. In March, Russia was in 16th place with USD 96.1 Bn in Treasury holdings. In April, it liquidated almost half of its holdings, and ended the month with USD 48.7 Bn and bought gold to diversify reserves, as the Governor of the Central Bank of Russia Elvira Nabiullina said after the sell-off of May. This knocked Russia into 22nd place behind the United Arab Emirates and Thailand. Then in May, Russia continued its U.S. Treasuries sell-off and disappeared entirely from the TIC’s list. The smallest one on the list was Chile, with USD 30.2 Bn. Russia’s holdings must have fallen below that amount, and we can imagine to zero… 

If there was a message in Russia’s liquidation of U.S. Treasuries, it was very difficult to hear clearly. Indeed, the 10-year Treasury sell-off that had started last September peaked with the 10-year yield at 3.1% on May 17th. Since then, the 10-year Treasury has rallied under heavy demand, and the yield has fallen – thus fueling fears about the inverted yield curve. Several explanations of Russia’s sell-off are possible. It could be a flight to safety (hence the gold purchases) because of the global trade posturing between the United States and the rest of the world led by China, the European Union, and Canada. It could be related to sanctions imposed by the United States on Russia in April (as the Trump administration imposed new sanctions on April 6 on seven of Russia’s richest men and 17 top government officials). Lastly, it could be a political maneuver to get rid of U.S. assets before they plunge in case of a recession (following the potential inverted yield curve).

 

Julien Moussavi, Head of Economic Research – Sources: Beyond Ratings, Bloomberg

Our latest
publications

Title
Category
Tag
Country
Date
Analyst insight
#ESG
Global
2019-08-19
Analyst insight
#Carbon #ESG
Global
2019-08-19
Analyst insight
#ESG
Global
2019-08-19
Research note
#ESG
Global
2019-08-19
Weekly food for thought
#Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#ESG
Global
2019-08-19
Weekly food for thought
#ESG
France
2019-08-19
Analyst insight
#Credit Risk #ESG
Global
2019-08-19
Weekly food for thought
#Carbon/Climate Change #Environment
Global
2019-08-19
Weekly food for thought
#ESG
Global
2019-08-19
Weekly food for thought
#ESG
France
2019-08-19
Analyst insight
#Carbon
Europe
2019-08-19
Weekly food for thought
#Carbon
Global
2019-08-19
Weekly food for thought
#ESG
Global
2019-08-19
Weekly food for thought
#Credit Risk
United States
2019-08-19
Analyst insight
#Environment
Northern Area
2019-08-19
Weekly food for thought
#Carbon/Climate Change
Europe
2019-08-19
Weekly food for thought
#ESG
France
2019-08-19
Weekly food for thought
#Credit Risk
Peru
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change
World
2019-08-19
Weekly food for thought
#ESG
France
2019-08-19
Weekly food for thought
#Credit Risk #GDP
Europe
2019-08-19
Weekly food for thought
#Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#ESG
Global
2019-08-19
Weekly food for thought
#Credit Risk
France
2019-08-19
Analyst insight
#Credit Risk #France
Europe
2019-08-19
Weekly food for thought
#ESG
Global
2019-08-19
Weekly food for thought
#Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#ESG
Global
2019-08-19
Weekly food for thought
#GDP
Europe
2019-08-19
Analyst insight
#ESG
Global
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#Carbon #ESG
France
2019-08-19
Weekly food for thought
#Credit Risk
Global
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#ESG
Europe, USA
2019-08-19
Weekly food for thought
#GDP
France
2019-08-19
Analyst insight
#Environment
France
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#Carbon/Climate Change #ESG
Global
2019-08-19
Weekly food for thought
#Credit Risk #GDP
China
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#ESG
USA
2019-08-19
Weekly food for thought
#GDP
Global
2019-08-19
Analyst insight
#Credit Risk #Sovereign Debt
Global
2019-08-19
Weekly food for thought
#Carbon #Climate #IPCC #WMO
Global
2019-08-19
Weekly food for thought
#Carbon #Inequality #Paris Agreement
France
2019-08-19
Weekly food for thought
#GDP #Sovereign Debt
Italy
2019-08-19
Analyst insight
#Credit Risk #GDP #Geopolitics #Sovereign Debt
Global
2019-08-19
Weekly food for thought
#Environment
Global
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #GDP
Global
2019-08-19
Weekly food for thought
#GDP
France
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #Environment
Global
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Environment
Global
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Environment
Global
2019-08-19
Analyst insight
#GDP
Brasil
2019-08-19
Weekly food for thought
#Environment
Venezuela
2019-08-19
Weekly food for thought
#Environment #Natural Capital
Norway
2019-08-19
Analyst insight
#Carbon #Carbon/Climate Change #Climate
United Kingdom
2019-08-19
Weekly food for thought
#Agriculture #Biodiversity #Climate #GHG #Greenhouse gases
Global
2019-08-19
Weekly food for thought
#Biodiversity #Climate #Environment #ESG #IPCC #Oceans #SIDS
Global
2019-08-19
Weekly food for thought
#Credit Risk #GDP
France
2019-08-19
Weekly food for thought
#Carbon/Climate Change
Europe
2019-08-19
Weekly food for thought
#Carbon/Climate Change
France, Canada
2019-08-19
Weekly food for thought
#Credit Risk #GDP
Argentina
2019-08-19
Analyst insight
France, Egypt
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate
France
2019-08-19
Weekly food for thought
#GDP #Sovereign Debt
Germany
2019-08-19
Weekly food for thought
#Environment #ESG
Global
2019-08-19
Analyst insight
#GDP #Natural Capital #Sovereign Debt
South Africa, France
2019-08-19
Weekly food for thought
#Credit Risk #Sovereign Debt
United States
2019-08-19
Weekly food for thought
#Carbon/Climate Change
Global
2019-08-19
Weekly food for thought
#Carbon/Climate Change #Environment #ESG
Global
2019-08-19
Weekly food for thought
#Carbon/Climate Change #Climate
Global
2019-08-19
Weekly food for thought
#ESG
India
2019-08-19
Weekly food for thought
#Credit Risk #GDP
USA, Japan, European Union
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #GDP #Paris Agreement #Sovereign Debt
Global
2019-08-19
Weekly food for thought
#Climate #Environment #Paris Agreement
Small Island Developing States, Global, Barbados, Fiji
2019-08-19
Weekly food for thought
#Credit Risk #GDP #Sovereign Debt
Venezuela
2019-08-19
Analyst insight
#Carbon #Carbon/Climate Change #Climate #Credit Risk
Global
2019-08-19
Analyst insight
Global
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate
Global
2019-08-19
Weekly food for thought
#Credit Risk #GDP
Global
2019-08-19
Analyst insight
#Biodiversity #Environment #Natural Capital
Brazil
2019-08-19
Weekly food for thought
#Credit Risk #Sovereign Debt
United States
2019-08-19
Weekly food for thought
#Carbon/Climate Change
Global
2019-08-19
Analyst insight
#Credit Risk #Sovereign Debt
United States
2019-08-19
Analyst insight
#Carbon/Climate Change #Credit Risk #ESG #Natural Capital
Global
2019-08-19
Analyst insight
#Carbon #Carbon/Climate Change
Europe
2019-08-19
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Paris Agreement
France
2019-08-19
Weekly food for thought
#Credit Risk #Sovereign Debt
Europe
2019-08-19
Weekly food for thought
Global
2019-08-19
Analyst insight
Global
2019-08-19
Weekly food for thought
France
2019-08-19
Weekly food for thought
#Carbon/Climate Change #ESG
Global
2019-08-19
Weekly food for thought
Global
2019-08-19
Weekly food for thought
Global
2019-08-19
Weekly food for thought
Global
2019-08-19
Analyst insight
#Biodiversity #Climate #Environment #Natural Capital #Paris Agreement
Global
2019-08-19
Weekly food for thought
United States
2019-08-19
Weekly food for thought
Italy
2019-08-19
Weekly food for thought
Global
2019-08-19
Analyst insight
Middle East & North Africa
2019-08-19
Weekly food for thought
Global
2019-08-19
Weekly food for thought
Global
2019-08-19
Research note
#Carbon #Carbon/Climate Change #Climate #Paris Agreement
Global
2019-08-19
Weekly food for thought
Global
2019-08-19
Analyst insight
All
2019-08-19
Weekly food for thought
United States
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
#Carbon/Climate Change #Climate #Credit Risk
England
2019-08-19
Weekly food for thought
Global
2019-08-19
Weekly food for thought
Germany
2019-08-19
Analyst insight
Brazil
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
Italia
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
Canada
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Analyst insight
Sweden
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
Italia
2019-08-19
Analyst insight
All
2019-08-19
Weekly food for thought
USA
2019-08-19
Analyst insight
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
United Kingdom
2019-08-19
Weekly food for thought
United Kingdom
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Research note
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
Russia
2019-08-19
Analyst insight
Argentina
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
European Union
2019-08-19
Analyst insight
European Union
2019-08-19
Analyst insight
Greece
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
European Union
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
Cuba
2019-08-19
Weekly food for thought
All
2019-08-19
Analyst insight
Greece
2019-08-19
Weekly food for thought
European Union
2019-08-19
Weekly food for thought
French Guyana
2019-08-19
Weekly food for thought
#Sovereign Debt
Russia
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
Venezuela
2019-08-19
Analyst insight
All
2019-08-19
Weekly food for thought
United Kingdom
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
France
2019-08-19
Weekly food for thought
European Union
2019-08-19
Weekly food for thought
All
2019-08-19
Weekly food for thought
France
2019-08-19

Let's keep in touch!

This field is required
Invalid email

Register to our newsletter to be the first to hear about ...

Get started

More investors are choosing Beyond Ratings' proprietary ESG-augmented financial metrics to gain a 360° view of company and country ESG performance.