Will China Dumping US Bonds Undermine Global Finance?

China, Russia and Brazil have recently been selling US Treasuries, hedging their fiscal risks and stirring volatility on Wall Street, potentially signaling a more significant slowdown in the global economy coming up.

Kristian Rouz — Several emerging markets, including China, Brazil, Russia and Taiwan, previously among the biggest buyers of US governmental bonds, have recently been selling them at the fastest pace since 1978. US bonds, commonly referred to as ‘Treasury notes’ or ‘Treasuries’ are, however, widely regarded as being among the most ‘safe haven’ assets in the financial world, meaning the emerging markets must have serious reason to cash those out for the more volatile money liquidity. Continue reading