Russia to sell U.S. treasuries, buy IMF bonds

MOSCOW -- Russia will reduce the share of U.S. treasuries in its forex reserves, the world's third-largest, a senior central bank official said on Wednesday, driving the dollar broadly lower.

Russia holds about 30% of the reserves, worth US$404.2-billion, in treasuries. Central bank first deputy chairman Alexei Ulyukayev said it would buy bonds issued by the International Monetary Fund and also up the share of reserves held in bank deposits.

Russia had earlier pledged to buy about US$10-billion worth of bonds to be issued by the IMF as part of a fundraising effort to help countries hit by the global financial crisis.

My Comments: I've read further on this and it turns out they wont be selling bonds but they will just roll them over into the IMF when they mature. This could counter the panic of such a large debt holder as Russia selling out. Either way this is a vote of no confidence for the dollar and our debt. And it leads me to ask...Russia is buying IMF bonds...China is still buying bonds but diversifying into commodities...Who is going to buy all of our newly created debt?