Just as the United States is isolating itself on the global trade stage, its financial dependence on the rest of the world may be about to increase. Figures on Wednesday showed that the US trade deficit in January was the widest in more than nine years at $56.6 billion. Will foreign investors, private and official sector, step up? Yet major US creditors like China and Japan are unlikely to dump their Treasury bonds. The relative cheapness of the dollar and attractiveness of US yields suggest foreign investors, particularly central banks and reserve managers, will buy even more this year.
Source: The Express Tribune March 08, 2018 12:11 UTC