China to continue US treasuries sell-off
China, the biggest foreign holder of US treasuries, is tipped to further reduce its investments in US government bonds after the election of Donald Trump. Analysts expect the value of the bonds to fall after a Trump administration embarks on a round of tax cuts and massive spending on infrastructure projects. Beijing has already slashed its holdings of US treasury bills for four months in a row, according to the South China Morning Post. A high yield on a bond generally results in a lower price and the yields on the US investments are likely to rise under Trump's presidency, according to Huang Haizhou, a managing director at China International Capital Corp. China now owns RMB 1.16 trillion of US treasury bills, about 37% of China's total foreign exchange reserves
Founder Retail Fintech | France Foreign Trade Advisor | Board Member | Consultant | 16 Years in China’s Tech and Innovation Hub | Africa Tech Summit
8 年ah ah at least he warmed us in advance that the system is rigged! My chinese friends and colleagues here are more and more skeptical about western "democracy"...can't blame them can we?
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8 年CNY is also under pressure, so FX reserves (sell USD and buy CNY) are used to offset CNY doecline. Plus there is still expectation of US interest rate hike. China, Saudi Arabia and others have started to sell US Treasuries well before the election, to defend the currency in the case of China, and fund deficit in the case of Saudi Arabia with oil reaching low level. Everything is not related to the US elections or at least not to the extend some speakers would like us to believe...