The US bond market collapse

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According to the recent official statistics the US treasury bonds market has experienced a sharp recession. The world Central Bank and American investment banks are refusing to invest in the US federal loan bonds. So far this year, 2015 testifies that the 18 largest US banks have reduced the volume of investments into bonds almost by $3 billion.

A reduction of investments into American treasury bonds caused a sharp delay in growth of the American cumulative debt market. For example, if towards the end of 2014, banks have increased the stocks of debt securities by $63 billion and $43 billion, in the first quarter of 2015, investments have increased by only $18 billion.

It is fair to notice that negative dynamics in the US debt market have become one of the key factors of profit growth of US bonds. Profitability of ten-year state bonds have grown to 2.24% from the data recorded at the beginning of 2015, i.e. 2.11%. As a result of this, American bonds have lost their value by 2.3%.

As for the Central Banks, they have also started a gradual refusal of American bonds. The volume of world Central Banks investments into American bonds has fallen to $2.9 trillion in the first quarter of 2015.