US’ biggest creditors dump treasuries in warning to Trump - BBG

Bloomberg carries a story on Monday, reported that the largest holders of the treasuries – Japan, sold-off their stakes in December by the most in almost four years in wake of uncertainty over Trump’s administration policies.

In December, Japanese investors reduced their investments in the US debt by 2.39 trillion yen ($21.3 billion) after a smaller pullback in November. While only a fraction of Japan’s $1.1 trillion of holdings, they were first the back-to-back declines since the start of 2014. 

Bloomberg reports, “From Tokyo to Beijing and London, the consensus is clear: few overseas investors want to step into the $13.9 trillion U.S. Treasury market right now. Whether it’s the prospect of bigger deficits and more inflation under President Donald Trump or higher interest rates from the Federal Reserve, the world’s safest debt market seems less of a sure thing -- particularly after the upswing in yields since November. And then there is Trump’s penchant for saber rattling, which has made staying home that much easier.”