U.S. TreasuriesIt has always been globalEconomyone of the focal points, and China holdsU.S. TreasuriesIt has attracted much attention. In recent years, China has steadily **U.S. TreasuriesThe move has sparked speculation and concern. However, recent data shows that China is not the only one sellingU.S. Treasuriescountries. Central banks in Japan, the United Kingdom and other countries are also joining the sell-offU.S. Treasuriesof the ranks, evenFederal ReserveI'm also selling my handsU.S. Treasuries。This situation has made the world rightU.S. TreasuriesThe outlook has generated more concerns.
U.S. TreasuriesThe total amount has reached $33 trillion, seriously exceeding 137% of the country's total GDP. Moreover, this liability is growing exponentially. In 2022, the United States will add a new oneTreasury bondsup to $470 billion, inThe Federal Reserve raises interest ratesThis number can increase dramatically. This makes global investors interested in:U.S. Treasuriesconfidence is at stake. Once the United States has a debt crisis or even defaults, it will have a global impactEconomyThe impact is incalculable.
In addition to the rapid growth in the size of debt,U.S. TreasuriesInterest rateshas also increased the pressure on the United States to service its debts. In recent years,U.S. TreasuriesInterest rateshas been at an ultra-low level, but withThe Federal Reserve raises interest rates, 10 yearsU.S. TreasuriesYields also climbed to 4A high of around 5%. The high cost of debt servicing will be severely crushedUnited States**of the finances, which also increasedU.S. TreasuriesPossibility of default. Global central banksAnd investors are worried about this situation and have chosen to sellU.S. Treasuriesto reduce risk.
Surprisingly,Federal ReserveI also began to sell what I had in my handsU.S. Treasuries, at least $840 billion has been thrown. The move was aimed at tightening the US financial marketsLiquidityto curb high inflationary pressures. yearsQuantitative easingPolicy has flooded the dollar with the United States todayInflation rateStill up to 8%. Sell-offU.S. TreasuriesConvert back to USD isFederal ReserveAn important means of curbing inflation. China and other countries are sellingU.S. TreasuriesIt is mainly for the sake of risk aversion and profit. This "selling tide" has undoubtedly shaken the global investors' perceptionU.S. TreasuriesConfidence in the future.
In various countries have **U.S. TreasuriesAt the same time, domestic investors in the United States bought more than 70%.U.S. Treasuries。This is mainly because:U.S. TreasuriesInterest ratesThe upward adjustment has been directly raisedBondsinvestment income. For a lot of middle-class Americans, buying something "risk-free" is a no-brainerTreasury bondsTo obtain a stable income is still a more ideal allocation method. U.S. households and institutional investors have become the biggest "pick-ups" in this wave of selling, and they have stabilized for the time beingU.S. TreasuriesMarket. However, how long can this situation last and who will ultimately be responsible for itDebt crisisPaying for the bill is still an issue worth paying attention to.
China**U.S. TreasuriesThere are not many political considerations behind it, but more based on market-oriented choices and risk aversion. At the same time, the central banks of many countries around the world andFederal ReserveAlso sellingU.S. Treasuries, which increases the market pairU.S. TreasuriesConcerns about the outlook. However, domestic investors in the United States have become the biggest "pick-up man" and have stabilized for the time beingU.S. TreasuriesMarket. How long can this blame-shifting situation last, and eventuallyDebt crisisHow will it end, to the worldEconomyhas an important impact.