Russia has a cash flow problem causing it to liquidate assets
What do they know? Mystery as Russia LIQUIDATED almost ALL of its holdings in US Treasury securities during run up to Helsinki summit, in move labeled 'unprecedented' by expertsIn recent days Russia has canceled production of its 5th generation fighter plane designed to compete with the F-35. It also announced that the retirement age for receiving a pension was being raised to a level close to the lifespan of the average Russian. They have cut back their troops in Syria and taken other steps to save money. It is not surprising that they are liquidating other assets like US treasuries.
- Russia slashed holdings in US Treasuries by 84 per cent from March to May
- Country is no longer considered major holder of Treasuries with just $14.9B
- Sell-off did not seem to affect yields much, having little impact on bond market
- Some speculate that US sanctions prompted Russia to move out of Treasuries