China sold 89 billionU.S. TreasuriesThe news was triggeredInternationalWidespread attention from the market. In this round of sell-offs in overseas countriesU.S. TreasuriesChina is not only one of them, but also one of the countries with the largest sell-offs. In addition, Japan has also taken corresponding measures to reduce itU.S. TreasuriesTranche. At the same time,Federal ReserveAlso unexpectedly the biggest seller,**U.S. TreasuriesMore than a trillion dollars. Although different countries are sellingU.S. Treasuries, but in fact, mostlyU.S. TreasuriesIn the end, it still flows into the hands of domestic investors in the United States. This article will explain this in detail.
China asU.S. TreasuriesOne of the largest holders and has continued to do so in recent years**U.S. TreasuriesThe sell-off has reached $89 billion, and its stock has fallen to its lowest point since 2009, below $780 billion. China sellsU.S. TreasuriesThe main reason is to seek to diversify and adapt both domestically and domesticallyEconomyChanges in the situation. What does this move mean for the United States?
First, the magnitude of China's sell-offU.S. Treasurieswill causeU.S. TreasuriesThe market is in surplus, which in turn pushesU.S. TreasuriesThis is a challenge for the United States because:U.S. Treasurieswill lead to the United StatesDebtRising costs are exacerbating the fiscal burden.
Second, the Chinese sell-offU.S. TreasuriesAlso broughtU.S. dollar exchange rateimpact. With the sell-off in ChinaU.S. Treasuries, there will be more dollars flowing into the market, which may lead toU.S. dollar exchange rate**。For the United States, which is highly dependent on exportsExchange rate** will make its export competitiveness lower, and then rightEconomic growthadversely affected.
In addition, China is sellingU.S. TreasuriesIt could also be globalFinanceInstability in the market. U.S. Treasurieshas always been seen as globalFinanceThe safe-haven assets of the market, China sell-offU.S. Treasurieswill weaken its position, which may trigger panic in the market, or even triggerFinanceCrisis.
Japan, one of the major creditors of the United States, is also taking steps to reduce itU.S. TreasuriesTranche. According to statistics, Japan has cut about $210 billionU.S. TreasuriesTranche. Despite some recent buyback moves, Japan has maintained a continued sell-off trend.
Japan's ** rightU.S. TreasuriesThe impact of the market is similar to that of China. Reduction of Japanese holdingsU.S. Treasurieswill increase the market **, and then rightU.S. TreasuriesCreates downforce. In addition, Japan** may also cause:U.S. dollar exchange rate**, to the United StatesEconomyNegative impact.
Surprisingly,Federal ReserveBecome the biggest seller in this round of sell-off. According to the data,Federal ReserveU.S. TreasuriesMore than a trillion dollars. This figure is far more than other countries, and even more than China and Japan combined. That is to say,U.S. TreasuriesIn the end, it still ended up in the hands of domestic investors in the United States.
This has raised concerns aboutU.S. TreasuriesFlow direction andFederal ReserveOperational thinking. Federal ReserveU.S. TreasuriesWhat is the reason behind it?Is it to adjust asset allocation, or to faceDebtConsideration of Risks?This deserves to go deeper**.
withU.S. Treasuriescontinue to increase, its repaymentInterestIt's also growing. As of the end of October this year,United States**Annual interest payments have exceeded US$1 trillion, earlier than previously expected. This means that the United States has to bearInterestSpending will be close to $2 trillion. That's rightU.S. TreasuriesThe risk of default poses a threat, and may even threaten the US dollarCreditStability of the system.
Also, the United StatesFiscal deficitsConstantly expanding, heavily indebted. At present, the U.S. fiscal deficit has reached 17 trillion dollars, not far from the 2 trillion mark. DebtCrisis and incidentalInterestThe situation is made even more dire by the continued growth of .
Federal ReserveIt has been announced several times that there will be a pause in interest rate hikes, and whether interest rate cuts will start in the future to reduceU.S. TreasuriesofInterestExpenditure?This will ease the burden to some extent, but it may also bring other problems. Therefore, the United States needs to consider a variety of factors and find a solution.
Recently, the U.S. Congress approved a resolution stating that it will reduce the size by up to 1$5 trillion in public spending to alleviateDebtPressure. However, there is still some uncertainty as to whether this resolution can actually be implemented and whether it will achieve the desired results.
The determination to reduce public spending is great, but the difficulty of practical operation cannot be ignored. In politics,EconomyThere are entanglements and conflicts of interest in all aspects of society. Therefore, it will take time to verify whether the Congressional decision to reduce public spending will proceed smoothly.
This article analyzes China's sell-off of 89 billionU.S. TreasuriesThe impact of Japan's ** initiatives、Federal Reserveof ** action as wellU.S. Treasuriesfactors such as the risk of a crash, revealing the currentU.S. TreasuriesThe situation in the market. It can be seen that holdingU.S. TreasuriesThe largest number of countries are sellingU.S. TreasuriesU.S. TreasuriesThe market is at risk.
For the United States, faceDebtcrisis andInterestThe increase in spending requires more concrete measures to defuse the crisis. Congressional resolution to reduce public spending is an attempt, but there is some uncertainty about its feasibility. Therefore, the United States needs to think further and find solutions to maintainU.S. Treasuriesstability and the dollarCreditThe system is running well.
Finally, face the globeEconomychanges andFinanceCountries also need to pay close attention to market fluctuationsU.S. Treasuriesmarket dynamics to make the right investment and adjust strategies. This can only be achieved through global cooperation and joint effortsEconomystability andSustainability