Not so much the big news, but it’s being broadcast by American mass media with enough frequency that it was impossible not to notice – Russia sold almost all American Treasuries that were in its possesion. The event is not very important. Russia was fifteenth biggest holder of US Treasuries. American Mass Media emphasizes that if China would begin to sell its bonds – the holder number one, then certainly it would be some sort of disasters event. But Russia is so a small player on this market.
However, there is much to think about, especially since the Putin administration never makes hasty decisions. It is obvious that the discharge of treasuries was well thought out and the time is well chosen. What is it really? 100 billion in three months? Are they scared of sanctions? Or they have conceived to do something bad with American interests, so they deduce American assets in advance?
Probably not that and not another. Russia sold American Treasuries because it has some knowledge about the upcoming event, which has already been scheduled, but has not yet happened. All this resembles a well-directed game. I do not rule out even that Russia received information from China that the Chinese preparing to do something bad on American Treasuries market, but tiped the partner (Russia) to sell before they start. China decided to let Russia leave the game first and not to hurt his partner.
Russia probably is a small player in the twenty-trillion US bond market, but nevertheless it is a well-informed player and I would recommend not to downplay actions of Russian bankers.