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comment by KapteinB
KapteinB  ·  93 days ago  ·  link  ·    ·  parent  ·  post: Russia cuts Treasury Bond Holdings in Half

Does this mean these countries have been selling their US treasury bonds, or just that they haven't bought new ones when old ones expired?




kleinbl00  ·  93 days ago  ·  link  ·  

They take a long time to expire - treasuries come in 2, 5 and 10-year varieties. While you hold it, though, it pays you a declared rate of return (the interest rate). Effectively, bonds are packetized loans. When the government says "we're selling bonds" what they're really saying is "who wants to loan us money."