🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Tether Becomes the Biggest Buyer of US Treasuries, Says Report

Published 04/03/2023, 12:02 PM
Updated 04/03/2023, 12:30 PM
Tether Becomes the Biggest Buyer of US Treasuries, Says Report
BARC
-
USDT/USD
-

  • Gabor Gurbacs tweeted that the foreign central banks are selling U.S. Treasuries.
  • The advisor added that the Tether is the largest buyer of U.S. Treasuries.
  • Gurbacs commented that if Tether was a country, it would have been the top 30 holders of the Treasuries.

Gabor Gurbacs, the Strategy Advisor at the global investment firm VanEck Associates Corporation, shared on Twitter that while foreign central banks are selling U.S. Treasuries, the asset-backed stablecoin Tether is the biggest buyer.

Notably, Gurbacs added, “If Tether was a country, it’d be among the top 30 holders of U.S. treasuries.”

According to the recent report of the television media Bloomberg, the foreign central banks have been liquidating Treasury holdings, facilitating cash from the Federal Reserve to mitigate the banking turmoil.

Reportedly, the foreign holdings of Treasury securities have fallen by $76 billion in the week through March 22 to $2.86 trillion, creating the largest weekly decline since 2014.

Significantly, Joseph Abate, the Managing Director of the British multinational universal bank, Barclays (LON:BARC) commented that the “borrowing was precautionary,” adding:

The central bank wanted to build a war chest of available dollars in case the banking crisis deteriorated but did not want to fire sell its Treasuries.

Gurbacs asserted that Tether has bought the largest share of U.S. Treasuries, noting, “U.S. leadership should appreciate Tether for buying and holding U.S. treasuries.” He included a graph of the U.S. Treasuries sold by foreign central banks, which the popular investor Willem Middelkoop shared some hours before.

Source: Twitter

Middelkoop commented that the foreign banks have been selling Treasuries; Russia almost sold everything while China continues to sell. He suggested “FED will need to be a buyer again soon,” adding that “debt monetization is the nuclear option.”

The post Tether Becomes the Biggest Buyer of US Treasuries, Says Report appeared first on Coin Edition.

See original on CoinEdition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.