ING, the banking giant in the United States has just released a warning about BRICS.
As the holdings in U.S. Treasuries of the countries continue to fall, the bank claims that the economic alliance will “quietly leave” the market.
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“…Another trend that continues to persist is the fall in Treasury holdings of the BRICS countries.
China, India and Brazil were the top three in October (down $11.8 billion, $12 billion respectively). Foreign official Treasury Bonds and Notes held by foreign officials fell $22 billion. This was partially offset, however, by an increase of $14 billion in T-bills .”
ING analysts say that although the selling-off of Treasury securities is taking place among the leading BRICS countries, India’s sales are primarily related to the efforts made to stabilize the rupee and “geopolitical” factors.
The bank has said that the private sector is taking up most of the slack when BRICS countries sell their exposure.
“… This year’s results have shown the willingness of private investors to purchase Treasuries. Our call for a weaker US dollar by 2026 relies on foreign investors increasing hedge ratios and not selling US assets outright.
According to ING, the US dollar is “surprisingly resilient”, after the newly published CPI figures surprised analysts by showing a much lower inflation rate than anticipated.
It may have been that the figures seemed too good to true and prevented a larger reaction on FX markets. The two-year US Treasury rates ended the session yesterday unchanged. The data does not change the fact that the Fed will cut rates in 2026. Markets are now expecting a 25-basis point reduction by April, and another one by September .”
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The post Trillion Dollar Bank Warns BRICS Nations are Quietly Venturing Out of the U.S. Treasury Market as China, India and Brazil Sold $28,800,000,000 in Exposure within Just One Month might be updated as new information becomes available.
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