from Bloomberg:
Russia may switch some of its reserves from U.S. Treasuries to International Monetary Fund bonds, the central bank said today, driving Treasuries and the dollar lower.
Alexei Ulyukayev, first deputy chairman of Russia’s central bank, said some reserves may be moved from Treasuries into IMF debt, reiterating comments made last month by Finance Minister Alexei Kudrin.
“We plan to reduce the share of U.S. Treasuries, because a window of opportunity for working with other instruments is opening,” Ulyukayev said. As well as the IMF bonds, Russia could place more of its currency reserves on deposits with foreign banks, he said. His remarks were confirmed by a Bank Rossii official who declined to be named, citing bank policy.
Treasuries fell, pushing 10-year yields to the highest level since November, on the Bank Rossii statement and as the U.S. government prepared to sell $19 billion of the securities. The dollar declined versus most of its major counterparts as speculation the global recession is easing reduced demand for safety and after Ulyukayev’s remarks.
