Again, China is just one (big) buyer in a sea of many. It would be transient, but in a market where the ten year return is around 2.8%, to have a spike that s. China sold $20.5bn of US government bonds over the course of the month, according to data released by the US Treasury on Wednesday. (Chart source, statista.com) Take the above chart for example, which shows just how much the United States imports from China each and every year. The first two ways would change nothing for either China or the United States. TOKYO - The Japanese yen's sharp decline may be producing an unexpected loser: the US Treasury Department. In fact, over the last two months, China sold over $34 billion in Treasuries - the biggest dump since 2016. If China starts dumping large amounts of debt on the market, interest rates will likely soar and the dollar would plunge. China currently holds around $1.11 trillion in US bonds. $1.32 trillion in late 2013. China follows with $1.08 trillion in its reserves. China further reduced its Treasury holdings to $1.18 trillion in . A $750 billion bond dump all at once could see interest rates rise much more than the brief 14% . The U.S. will convert China's $1.4 trillion of Treasury notes to a trust fund for COVID-19 victims and economic damages. Countries Team Up to Take Down the U.S. Dollar. A deepening trade . China is. By releasing a flood of US Treasuries, the price would collapse . No matter how one twists or turns, the US wins if China dumps US treasuries. Japan is the second-largest holder of US Treasuries with $1.21 trillion in its system, according to Federal Reserve data. However, the typical reason is China needs to support the Yuan (sell dollar and stabilize or increase the price of the Yuan) to stop capital flight. Japan urges China to play 'responsible role' for peace; Exclusive: US Treasury's Yellen and trade czar Tai at odds over China tariffs; Japan and US preparing statement promising to 'deter' China, Nikkei reports; Flight MU5735 crash: bereaved relative demands answers from airline over US report of deliberate dive Finally, of course, if China's dumping of Treasuries did have a serious impact as Brad W Setser points out in a good, though somewhat technical, piece for the Council on Foreign Relations then the . I'm not saying we'll see no international trade, but it will be nothing like . US debt is viewed as among the safest assets on the planet.. China Dumping U.S. Treasuries. With the trade war ramping up, according to GaveKal, the US has a nuclear option if China starts dumping US Treasuries. They could start more aggressively selling US Treasuries. All this brings us back to the Global Times 's threat to sell U.S. Treasuries. The latest data shows that China's holdings of US Treasury securities fell to US$1.06 trillion in September, down from a peak of US$1.3 trillion in 2013, still representing a sizeable 15 per . There's another $100 billion worth . Japan urges China to play 'responsible role' for peace; Exclusive: US Treasury's Yellen and trade czar Tai at odds over China tariffs; Japan and US preparing statement promising to 'deter' China, Nikkei reports; Flight MU5735 crash: bereaved relative demands answers from airline over US report of deliberate dive China reveals new rapid-fire drone launch system June 7, 2022; US, UK missiles to challenge Russia's 'god of war' June 6, 2022; South Korea has nuclear subs firmly in its sights June 6, 2022; China claims new AI can intercept hypersonics June 6, 2022; US-made parts keep Russia's artillery firing in Ukraine June 3, 2022 Russia and . There is a domino effect. Even at Russia's recent peak of $105.7 billion in November 2017, it only ranked as the 15th biggest foreign holder of US debt. China owns about $1.2 trillion -- or roughly 10 times as . The most recent incident came when US President Donald Trump imposed an additional 15 percent tariff on $200 billion worth of Chinese goods in response to China's alleged back-pedaling on key . . According to US Treasury data, major foreign holders of US treasury securities have been reducing their holdings by almost US$250 billion since March. Ahead of this week's Fed decision, China is now dumping unprecedented amounts of U.S. Treasuries. The People's Bank of China, owner of the world's biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and . But Eswar Prasad, a very smart economist at Cornell University and a senior . This is nothing more than a balance sheet operation on the books of the Fed: Bank of China reserves at the Fed are debited and Bank of China treasuries are credited. Dropping to $800 billion from the current level could mean shrinking its holdings by more than 25%. The UK is the third-biggest holder with $621.6 billion. For starters, China could fire back by dumping its vast holdings of U.S. government debt. The data cover trading in Treasuries with a maturity of more . It is true that if China does dump US Treasuries on a large scale, it might cause other foreign governments to follow suit in a panic, causing US interest rates to rise, the dollar to depreciate . China gradually sold off a chunk of its US Treasury holdings between mid-2014 and late 2016—10-year US Treasury yields fell for much of this stretch. China Dumping U.S. Treasuries. For its part, Beijing, the largest foreign owner of Treasuries, cut its holdings by $5.8 billion to $1.18 trillion. Ireland holds about $262 billion of U.S . I wonder if anyone can enlighten me on Mish's comments at his recent Google Tech Talk, posted on the June 7th's Daily Digest : v=1YKc0UolTqE&e. China CAN'T dump U.S. Treasuries - General Discussion and Questions - Peak Prosperity Forum China, ranked the second-biggest holder of US state debt, increasing its share to $1.08 trillion. At the start of this week, it dropped below 2 percent, but was back trading at . The 10-year yield also fell between March 2018 and March 2019, as China's Treasury holdings fell by about $67 billion. At the start of this week, it dropped below 2 percent, but was back trading at . Flooding the market with treasuries would push down US bond prices and cause the yields to spike. Make no mistake: it's a much bigger problem for China than it is for us. (Reuters) - The trade war between Beijing and Washington has stoked concern in financial markets that China might opt to weaponize its holdings of more than $1.1 trillion worth of U.S . "Ahead now, I think you'll see the big nations shrink back into their own corners of the world. GOLD , KWN King World News. Dumping Treasuries would likely raise borrowing costs for U.S. consumers and businesses, but it would also hurt the value of China's own Treasury assets, which top $1 trillion. "We hold a decent amount of Treasury bonds—more than $200 billion—and if the United States dares to freeze accounts of Russian businesses and citizens, we can no longer view America as a reliable partner," Glazyev said earlier this month, per . . Theoretically, if China were to dump this debt onto the market, US bond prices would drop and force the government to . The US Can't Beat China If It's Scared of Trade. It would be transient, but in a market where the ten year return is around 2.8%, to have a spike that s. One measure China could take that keeps popping up in conversation is that the country could start dumping its massive hoard of $1.1 trillion worth of US Treasurys en masse, depressing their value . (Click on image to enlarge) Source: Bloomberg . China chooses U.S. Treasuries to invest in, versus real estate, stocks, and other countries' debt, because of their safety and stability. The dollar has been the world's reserve currency for . The Treasury had . China then sold $48 billion in US Treasury bonds in the month of January; American interest rates jumped-up, and the yuan weakened by 5 percent. Although China is rattling their saber once again, I believe it is just that: saber-rattling. asiatimes.com - TOKYO - The Japanese yen's sharp decline may be producing an unexpected loser: the US Treasury Department. These five paths cover every possible way Beijing can reduce official purchases of U.S. government bonds: China can buy other U.S. assets, other developed-country assets, other developing-country assets, or domestic assets. 883 Followers. The pace of dumping has intensified with some US$200 billion reduced in just past two months. Its holdings of US Treasury bonds, notes and bills peaked at apprx. The price of the treasuries would drop, effective raising the return for those who bought the bonds. Read more about Beijing likely to dump US treasuries as US-China tensions soar: Report on Business Standard. Feb. 13, 2009 1:22 PM ET 114 Comments. And at the fastest rate on record. They have now dumped Treasury paper for seven months in a row. According to the latest published data, China and Japan dumped U.S. Treasuries the most in August. China . The bottom line is that since China has become a net seller of Treasuries, liquidity has dried up. China's threat to dump US Treasuries "in an extreme case, like a military conflict" is an important development for the . (Click on image to enlarge) Source: Bloomberg. Over the last 12 months, the Chinese have shed $69 billion of its Treasury securities. China was . So a sort of a monetary shock, administered from China's dumping US Treasuries and thus pushing up US long-term yields, would solve that problem. David Fessler. Assume China has $2 trillion in total dollar reserves. The Bank of China rationally prefers to earn interest on dollar holdings, so these are converted to US treasuries. And the Fed can go about its path of raising . Belgium also saw significant selling (often considered a proxy for China selling via Everclear), now with the lowest holdings since Sept 2020. China occasionally manages US treasuries in a fashion that people often claim as "dumping". For the 12-month period ended July, sales of Treasuries by . The conventional wisdom is that China would never just dump U.S. Treasury bills since it would end up boomeranging right back on Beijing. The Chinese haven't been dumping Treasuries at the same rate as the Japanese - at least not until recently - but they haven't been buying either. This past summer, Belgium's Treasury holdings unexpectedly doubled to the tune of between $150 and $200 billion, commensurate with China's reported net purchases. Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis . Chinese officials have been talking about dumping U.S. debt — the so-called "nuclear option" — since at least the . Text. India firing up orders for its homegrown Astra missile June 9, 2022; China claims new AI can intercept hypersonics June 6, 2022; US-made parts keep Russia's artillery firing in Ukraine June 3, 2022; China floats first-ever AI-powered drone mothership June 1, 2022; US failure to tackle Russia's fearful Wagner Group May 28, 2022; China aims to take out Elon Musk's . According to the latest US Treasury TIC figures, out of a total foreign ownership of $7.09 trillion US Treasuries, China owns $1.073 trillion of which according to the Global Times $300bn will definitely be sold.

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