China for 7 consecutive months**U.S. Treasuries, the latest data shows that China has to holdU.S. TreasuriesThe scale was reduced to $769.6 billion. This has been held by China for nearly 10 yearsU.S. TreasuriesThe nadir of the scale. Prior to this, China heldU.S. TreasuriesThe scale once exceeded the trillion level, but now it has dropped to about 700 billion. This continuous trend has attracted global attention.
China Continuous**U.S. TreasuriesThe reasons for this can be interpreted from multiple perspectives. First, there has been a general depreciation of global assets in recent yearsU.S. TreasuriesIt's no exception. At this time**U.S. TreasuriesObviously mitigate risk and protect assets. Secondly, AmericanDebtAlready unbelievably high, continue**U.S. Treasuriesis to itselfFinancial riskprecautions. In addition, several countries around the world are also**U.S. Treasuries, indicated the United StatesEconomyand the decline in confidence in the dollar. Hence the Chinese **U.S. TreasuriesIt is in line with global trends.
However, China's ** strength is not small, and Yellen's previous demands on China are a clear signal. Yellen called for China to changeEconomypolicy, and visit China to intensify lobbying, hoping that China will continue to buyU.S. Treasuries。However, there is still a great deal of uncertainty about whether China will be able to meet the US demands. China buysU.S. Treasuriescapacity is limited and faces multiple risk factors, including the United StatesRecession, the depreciation of the dollar, etc. Hence the Chinese **U.S. TreasuriesIt is for self-protection and rational choice.
China's **U.S. TreasuriesNot alone, worldwide**U.S. TreasuriesThe phenomenon is also gradually intensifying. According to relevant data released by the U.S. Treasury Department, in addition to China, so-called U.S. allies such as Switzerland, Norway and South Korea are all **U.S. Treasuries。In October, foreign official agencies sold nearly 24.1 billionU.S. Treasuries, overseasInvestmentsIt sold 68.4 billionU.S. Treasuries。The whole world, so to speak, is fleeingU.S. Treasuries
This global sell-off illustrates the market pairU.S. Treasuriesof dissatisfaction and distrust. U.S. TreasuriesIt should have been favored as a pricing anchor for global assets and one of the safest. However, in recent yearsU.S. Treasuriesbecame the biggest loser, and its appeal continued to decline. The intensification of this trend will accelerate overseasInvestmentsThe evacuation of the United States has brought enormousEconomyPressure.
Judging from the trend of global capital flows, countries in the Middle East are increasing their holdings in emerging markets such as ChinaInvestmentsintensity, and reduce the intensity of the United States and other Western countriesInvestments。This can be understood as a strategic readjustment in the Middle East that is rising in the east and falling in the west. At the same time, the United States is facing severe fiscal pressures, with reduced fiscal revenues and interest rate hikesDebtThe pressure is constantly increasing. The U.S. needs other countries to buy its bonds to make up for itFiscal deficits, but for the time being**U.S. TreasuriescountriesU.S. TreasuriesIt's no longer attractive.
The Fed's decision to pivot to raising interest rates can be understood as correctEconomyself-confidence and the suppression of inflation. However, with the globalizationEconomyUncertainty increases, the Fed pivotsCut interest rates, which means the United StatesFinanceThe crisis is expanding.
The Fed has been raising interest rates for years in order to harvest interest rate differentials. However, such a rate hike policy can also hurt itself. NowU.S. TreasuriesInterestIt has doubled to the trillion level, and nearly 1 4 of the fiscal revenue has to be repaidInterest。With the United StatesEconomyThe United States is facing more pressure.
The U.S. interest rate hike policy is also a stabEconomyOne of the means of the bubble, however, the United States is now feeling the coming crisis, and therefore in the rightIsraeli-Palestinian conflictWhen it came to the conflict between Russia and Ukraine, it was just lip service, but no actual action. This shows that the US fiscal situation is already very tight and can no longer bear more burdens.
At the same time, globallyInvestmentsYesU.S. TreasuriesInterest is getting low, plus the Fed is about to pivotCut interest ratesU.S. Treasurieswill decline even further. , overseasInvestmentsThe withdrawal will exacerbate the volatility in the market, further exacerbating itFinanceCrisis.
To sum up, China**U.S. TreasuriesIt is a reasonable choice and a consideration for self-interest. Worldwide**U.S. TreasuriesThe phenomenon shows that the market is rightU.S. Treasuriesof worries and dissatisfactions. And the Fed pivotedCut interest ratesand the financial pressures on the United States, which have also intensifiedFinanceThe risk of a crisis. For China,**U.S. TreasuriesIt is a measure within a reasonable range, but at the same time, it is necessary to pay attention to the rhythm and method to avoid unnecessary risks and market fluctuations.