Debt Market Opinii Debt Market Renewed fears of a possible U. Xi Junyang has not provided any timeframe of such possible selloff.
It is true that China continuously lowering its U. The White House Administration is mounting pressure on China on various issues, including accusations of conscious concealment of coronavirus real threat, Tranzacționarea Monex are un conflict rights violations of Uighurs, undermining unique freedoms and status of Hong Kong, stealing technologies from the United States and many others.
But if to look on the real figures, Chinese stake in U. China may not even necessarily sold this entire amount of Treasuries as it may have used other custodians to purchase Treasuries.
Nevertheless, with such pace of selling U. In this case, foreign reserves of China would also decrease significantly, as the gains from these sales would also deteriorate. Massive selloff of the U. Dollar, which is hardly acceptable to China as its exports would be much cheaper and less competitive on the global market. Exports are crucial for a rapid economic recovery of China considering U. Besides, if such an amount of Treasuries was sold once off, it is reasonable to wonder where this huge amount of money would be reinvested.
China could not increase imports in such volumes. There is no financial market other than safe haven U. Moreover, U. No alternative assets with such liquidity and reliability together with low, but still attractive yields exist globally for the moment.
The U. K Bonds provide the annual yields of 0. So, a massive selloff of the U. Disclaimer: Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
Nume: Mark Goichmann Market Focus.