Hong Kong has sent the first sign from Asia that the region is creating extra financial buffers against a possible default in the US. China said some US short – term Treasury bonds appear to be more risky to hold as collateral than previously thought.
The clock is ticking for the US to make a decision on its spending bill and the massive $16.7 trillion debt.
The country’s key foreign lender China has shifted from words to actions and said it has taken two steps to reflect the increased difficulty of valuing certain short-term US Treasuries, the Financial Times reports.
One of the steps includes a so-called “haircut”, or a discount, on the value of US Treasuries held as collateral against futures trades.
The interest rate for bonds held with maturity of less than one year would be raised to 3 percent from 1 percent .... http://rt.com/business
One of the steps includes a so-called “haircut”, or a discount, on the value of US Treasuries held as collateral against futures trades.
The interest rate for bonds held with maturity of less than one year would be raised to 3 percent from 1 percent .... http://rt.com/business
