The United States is one of the most indebted countries in the world, as of 2022U.S. TreasuriesThe total has exceeded $33 trillion, equivalent to 137% of the total GDP of the United States. And this number is growing exponentially, with new additions every yearTreasury bondsUp to $470 billion. At present, not only China, but also the central banks of Japan, the United Kingdom and other countries have also **U.S. Treasuries, and even the Fed itself is selling what it has in its handsU.S. Treasuries。This situation has undoubtedly exacerbated people's interest in the situationU.S. TreasuriesConcerns about the outlook.
This massive sell-offU.S. TreasuriesOne of the main reasons is:U.S. TreasuriesThe surge in the total amount, as wellU.S. TreasuriesInterest ratesof the ascent. Federal Reserve'sHike ratepolicy makes the entire marketInterest rateslevel rises, ten-year periodU.S. TreasuriesYields climbed to 4A high of around 5%, a new high in 10 years. This means that the U.S. will have more than $1 trillion in interest payments in fiscal year 2022 alone. IfInterest ratesIf it rises further, this number will continue to increase and will seriously crush the US finances. Due toU.S. TreasuriesThe risk is gradually increasing, globalInvestmentsThey have chosen to sell to reduce their risk exposure.
Surprisingly, the biggest "pick-up man" in this wave of selling is actually the family and institution in the United StatesInvestmentsHe who. Despite the fact that central banks around the world have been a**U.S. Treasuries, but domesticInvestmentsbut bought more than 70%.U.S. Treasuries。This is mainly because:U.S. TreasuriesInterest ratesThe upward adjustment directly raised the bond'sInvestment 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. In addition, the Fed tightenedLiquidityThe move has also prompted businesses and residents to put dollar funds in their handsInvestmentsonU.S. Treasuriesto get dollarsInvestment income
Overall, China**U.S. TreasuriesNot out of political considerations, but as part of a market-based choice to avoid risk. At the same time, other central banks and the Federal Reserve are also sellingU.S. Treasuries, exacerbating the market pairU.S. TreasuriesConcerns about the outlook. However, within the United StatesInvestmentsTemporarily stabilizedU.S. TreasuriesMarket. But there is still a lot of uncertainty about whether this situation of "trapping money" with each other will be sustainable, and who will ultimately pay for this debt spree.
Looking back at the whole situation, China and the United StatesEconomyRelationship changes to the globeEconomyThe pattern and the great power game have an important impact. And China has sold off massivelyU.S. TreasuriesThe action has sparked speculation and concern. However, there was a sell-offU.S. TreasuriesThe main reasons are:U.S. TreasuriesThe total amount of the surge andU.S. TreasuriesInterest ratesof the ascent. At the same time, globalInvestmentsConcerns and risk aversion are also important factors in the sell-off. Behind this "All-Union Sell-off Conference", different countries and institutions are in the worldU.S. TreasuriesThere are different motivations and considerations. Whether it's a central bank or an individualInvestmentsare trying to reduce their risk exposure. But how long this situation can last, and what the final outcome will be, is still unknown.
As a self-editor, I'm very interested in this sell-offU.S. TreasuriesThe motivations behind it have been thoroughly researched and analyzed. Personally, I believe that this sell-off is both a risk-off move and a manifestation of concerns about excessive US debt. U.S. Treasuriesof the proliferation andInterest ratesThe rise does give to the globeEconomyBrings with it a great deal of uncertainty. The sell-off by the central banks of China, Japan, the United Kingdom and the Federal Reserve is a choice made under market conditions to avoid potential risks. On the other hand, the United States is domesticInvestmentsof large quantitiesU.S. Treasuries, it is out of the pursuit of stable income. AlthoughU.S. TreasuriesThe market is currently stable for the time being, but with the globalizationEconomyand the evolving political situation, sell-offU.S. TreasuriesThe tide is likely to continue. For the whole worldInvestmentsand financial markets, concernU.S. TreasuriesThe movement of the market and its future direction are crucial.