China May Be Dumping Treasuries And Causing Bond Market Crash

[g5000]

Ordinarily, during times of stock market crashes, large investors move their money to US Treasury bonds in what is called a "flight to safety".

This surge in buying causes the interest rate on bonds to drop.

Supply and demand.

However, something odd is going on right now. Interest rates on bonds are rising because demand is reversing. Someone is selling off their bonds, and the demand for Treasuries is behaving counterintuitively.

This is most likely China. The selloff of bonds is happening during our evening hours, which is daytime trading hours in Asia.

When Dumb Donald raised the tariffs on China to 125%, the 10-year Treasury rate jumped from 4.1% to 4.5% within hours.

China owns a lot of our debt, so they can manipulate our interest rates very easily, and it appears they are.

I can hear MAGAs right now saying, "FAKE NEWS!...WHO CARES?...BUT MEXICANS!"

Here's why it matters.

Higher interest rates on Treasuries trickles down to higher mortgage rates, higher credit card rates, higher auto loan rates, higher rates on every type of credit.

Higher interest rates means it cost the US government more to borrow money. And Dumb Donald loves to spend and borrow other people's money.

We have $36 trillion of debt, of which Trump contributed $8 trillion. At some point, investors are going to have doubts as to our ability to pay off our debt, and then we will hit a death spiral as they demand higher and higher interest rates to compensate for that risk.

Right now, China is performing a proof of concept. God helps us all if they decide to wage a full-on bond war.

The bond market plunges as crisis brews​

​

Trump didn’t care that the stock market was crashing. Bond yields were the ‘pain point’ that finally got him to pause tariffs​

​

First the stock market crashed, now the bond market is tumbling. This could be really bad.​

​

 

[OldFlame]

Yeah, so you're basically saying that we are China's bitch and have to ask how high when they say jump. Yet you bitch and complain about every effort being made to change that scenario, to remove corruption, to remove unfair trade tariffs, all things that will help to lower the debt. You idiots didn't give a damn about the debt and all the bullshit the dems spent trillions on, billions sent to Ukraine, etc.. So you can now fuck off with your concern, you're not in charge.

 

[Woodznutz]

Ordinarily, during times of stock market crashes, large investors move their money to US Treasury bonds in what is called a "flight to safety".

This surge in buying causes the interest rate on bonds to drop.

Supply and demand.

However, something odd is going on right now. Interest rates on bonds are rising because demand is reversing. Someone is selling off their bonds, and the demand for Treasuries is behaving counterintuitively.

This is most likely China. The selloff of bonds is happening during our evening hours, which is daytime trading hours in Asia.

When Dumb Donald raised the tariffs on China to 125%, the 10-year Treasury rate jumped from 4.1% to 4.5% within hours.

China owns a lot of our debt, so they can manipulate our interest rates very easily, and it appears they are.

I can hear MAGAs right now saying, "FAKE NEWS!...WHO CARES?...BUT MEXICANS!"

Here's why it matters.

Higher interest rates on Treasuries trickles down to higher mortgage rates, higher credit card rates, higher auto loan rates, higher rates on every type of credit.

Higher interest rates means it cost the US government more to borrow money. And Dumb Donald loves to spend and borrow other people's money.

We have $36 trillion of debt, of which Trump contributed $8 trillion. At some point, investors are going to have doubts as to our ability to pay off our debt, and then we will hit a death spiral as they demand higher and higher interest rates to compensate for that risk.

Right now, China is performing a proof of concept. God helps us all if they decided to wage a full-on bond war.

The bond market plunges as crisis brews​

​

Trump didn’t care that the stock market was crashing. Bond yields were the ‘pain point’ that finally got him to pause tariffs​

​

First the stock market crashed, now the bond market is tumbling. This could be really bad.​

​

Not so fast. "Dumped" bonds are sold on the secondary market below contracted interest rates, saving the borrower money. If China's dumping lowers the interest rate on bonds the government can refinance debt at a cheaper price. And someone will buy the new issues, they always do, although shorter term bonds may be favored in an unstable market.

 

[Rambunctious]

China May Be Dumping Treasuries And Causing Bond Market Crash​

"May Be" Why don't you wait till you know for sure?... sounds like you are hoping they do...

 

[22lcidw]

China May Be Dumping Treasuries And Causing Bond Market Crash​

"May Be" Why don't you wait till you know for sure?... sounds like you are hoping they do...

We know what Progs are about. It is evident for decades. And the kicker is, China would not put up with them. China uses them. There is just too much baggage and issues. Their attitudes towards everything makes what is important seem dwarfed. China would imprison, enslave or kill them.

 

[g5000]

Yeah, so you're basically saying that we are China's bitch and have to ask how high when they say jump. Yet you bitch and complain about every effort being made to change that scenario, to remove corruption, to remove unfair trade tariffs, all things that will help to lower the debt. You idiots didn't give a damn about the debt and all the bullshit the dems spent trillions on, billions sent to Ukraine, etc.. So you can now fuck off with your concern, you're not in charge.

We would not be China's bitch if we didn't have presidents who keep adding to our debt and selling it to China, dumbass.

China is looking out for their own self interests, while we have a retard destroying our own.

 

[Rambunctious]

We would not be China's bitch if we didn't have presidents who keep adding to our debt and selling it to China, dumbass.

China is looking out for their own self interests, while we have a retard destroying our own.

China steals our inventions and takes advantage of us with slave labor... so you people in business who are complaining today just stop buying from China till they start to play fare....

 

[Eman623]

If they are going to decouple from our markets, then they might as well decouple from our debt as well.

Just as well. China may be needing a lot of cash soon when the profits from USA sales slows to a trickle.

 

[Concerned American]

China steals our inventions and takes advantage of us with slave labor... so you people in business who are complaining today just stop buying from China till they start to play fare....

I'm confused, correct me if I'm wrong, but doesn't this reduce the debt owed to China? How is that not a good thing. Seems that any attempt to pay down/reduce debt should be hailed as a success. Reducing our out-of-this-universe debt is going to be painful. I say rip that band aid off.

 

[Marener]

Not so fast. "Dumped" bonds are sold on the secondary market below contracted interest rates, saving the borrower money. If China's dumping lowers the interest rate on bonds the government can refinance debt at a cheaper price. And someone will buy the new issues, they always do, although shorter term bonds may be favored in an unstable market.

Not exactly. The borrower (the treasury) is going to pay the same coupon no matter who holds the bond. If the value of the bond goes down, then it shows that fewer people want them, increasing yields and making it more expensive for new issues.

What's especially troubling is that if it looks like the economy is going downhill, people should be moving their money out of the market into treasures, lowering yields. But that's not happening. People are taking their money out of the US market and putting it into foreign debt and equities.

It's a bad situation to be in.

 

[Woodznutz]

Not exactly. The borrower (the treasury) is going to pay the same coupon no matter who holds the bond. If the value of the bond goes down, then it shows that fewer people want them, increasing yields and making it more expensive for new issues.

What's especially troubling is that if it looks like the economy is going downhill, people should be moving their money out of the market into treasures, lowering yields. But that's not happening. People are taking their money out of the US market and putting it into foreign debt and equities.

It's a bad situation to be in.

I stand corrected. It's the buyer of the surrendered bond that gets a good deal if the bond is held to maturity. The current price/yield of the bond also must be considered. If yields are too low and no one buys the bonds what then?

 

[percysunshine]

Pfft...China is not that stupid. The Fed could remove them from the market without breaking a sweat.

If China were dumping treasuries in any size, it would show up in the exchange rate. It is not there.
Alas, just a bunch of idiot hedge funds leveraged on the wrong side of the basis trade being margin called by the banks.

 

[TimFitz]

Ordinarily, during times of stock market crashes, large investors move their money to US Treasury bonds in what is called a "flight to safety".

This surge in buying causes the interest rate on bonds to drop.

Supply and demand.

However, something odd is going on right now. Interest rates on bonds are rising because demand is reversing. Someone is selling off their bonds, and the demand for Treasuries is behaving counterintuitively.

This is most likely China. The selloff of bonds is happening during our evening hours, which is daytime trading hours in Asia.

When Dumb Donald raised the tariffs on China to 125%, the 10-year Treasury rate jumped from 4.1% to 4.5% within hours.

China owns a lot of our debt, so they can manipulate our interest rates very easily, and it appears they are.

I can hear MAGAs right now saying, "FAKE NEWS!...WHO CARES?...BUT MEXICANS!"

Here's why it matters.

Higher interest rates on Treasuries trickles down to higher mortgage rates, higher credit card rates, higher auto loan rates, higher rates on every type of credit.

Higher interest rates means it cost the US government more to borrow money. And Dumb Donald loves to spend and borrow other people's money.

We have $36 trillion of debt, of which Trump contributed $8 trillion. At some point, investors are going to have doubts as to our ability to pay off our debt, and then we will hit a death spiral as they demand higher and higher interest rates to compensate for that risk.

Right now, China is performing a proof of concept. God helps us all if they decide to wage a full-on bond war.

The bond market plunges as crisis brews​

​

Trump didn’t care that the stock market was crashing. Bond yields were the ‘pain point’ that finally got him to pause tariffs​

​

First the stock market crashed, now the bond market is tumbling. This could be really bad.​

​

Don't forget that he is planning on going from $36 trillion to $41 trillion in debt. Borrow and spend, in the longstanding GOP tradition.

 

[Independent thinker]

Ordinarily, during times of stock market crashes, large investors move their money to US Treasury bonds in what is called a "flight to safety".

This surge in buying causes the interest rate on bonds to drop.

Supply and demand.

However, something odd is going on right now. Interest rates on bonds are rising because demand is reversing. Someone is selling off their bonds, and the demand for Treasuries is behaving counterintuitively.

This is most likely China. The selloff of bonds is happening during our evening hours, which is daytime trading hours in Asia.

When Dumb Donald raised the tariffs on China to 125%, the 10-year Treasury rate jumped from 4.1% to 4.5% within hours.

China owns a lot of our debt, so they can manipulate our interest rates very easily, and it appears they are.

I can hear MAGAs right now saying, "FAKE NEWS!...WHO CARES?...BUT MEXICANS!"

Here's why it matters.

Higher interest rates on Treasuries trickles down to higher mortgage rates, higher credit card rates, higher auto loan rates, higher rates on every type of credit.

Higher interest rates means it cost the US government more to borrow money. And Dumb Donald loves to spend and borrow other people's money.

We have $36 trillion of debt, of which Trump contributed $8 trillion. At some point, investors are going to have doubts as to our ability to pay off our debt, and then we will hit a death spiral as they demand higher and higher interest rates to compensate for that risk.

Right now, China is performing a proof of concept. God helps us all if they decide to wage a full-on bond war.

The bond market plunges as crisis brews​

​

Trump didn’t care that the stock market was crashing. Bond yields were the ‘pain point’ that finally got him to pause tariffs​

​

First the stock market crashed, now the bond market is tumbling. This could be really bad.​

​

May be?

 

[Votto]

Ordinarily, during times of stock market crashes, large investors move their money to US Treasury bonds in what is called a "flight to safety".

This surge in buying causes the interest rate on bonds to drop.

Supply and demand.

However, something odd is going on right now. Interest rates on bonds are rising because demand is reversing. Someone is selling off their bonds, and the demand for Treasuries is behaving counterintuitively.

This is most likely China. The selloff of bonds is happening during our evening hours, which is daytime trading hours in Asia.

When Dumb Donald raised the tariffs on China to 125%, the 10-year Treasury rate jumped from 4.1% to 4.5% within hours.

China owns a lot of our debt, so they can manipulate our interest rates very easily, and it appears they are.

I can hear MAGAs right now saying, "FAKE NEWS!...WHO CARES?...BUT MEXICANS!"

Here's why it matters.

Higher interest rates on Treasuries trickles down to higher mortgage rates, higher credit card rates, higher auto loan rates, higher rates on every type of credit.

Higher interest rates means it cost the US government more to borrow money. And Dumb Donald loves to spend and borrow other people's money.

We have $36 trillion of debt, of which Trump contributed $8 trillion. At some point, investors are going to have doubts as to our ability to pay off our debt, and then we will hit a death spiral as they demand higher and higher interest rates to compensate for that risk.

Right now, China is performing a proof of concept. God helps us all if they decide to wage a full-on bond war.

The bond market plunges as crisis brews​

​

Trump didn’t care that the stock market was crashing. Bond yields were the ‘pain point’ that finally got him to pause tariffs​

​

First the stock market crashed, now the bond market is tumbling. This could be really bad.​

​

The sooner America divorces itself from everything related to the brutal Marxist dictatorship that undergoes open genocides that the world does nothing about because of the money they supply them, the better off America will be.

China is equivalent to Nazi Germany.

 

[g5000]

May be?

Someone is. No maybe about that.

Someone in Asia. Since China holds more of our debt than anyone else in Asia who would want to harm us, they are the obvious culprit.

 

[Shamrock17]

Ordinarily, during times of stock market crashes, large investors move their money to US Treasury bonds in what is called a "flight to safety".

This surge in buying causes the interest rate on bonds to drop.

Supply and demand.

However, something odd is going on right now. Interest rates on bonds are rising because demand is reversing. Someone is selling off their bonds, and the demand for Treasuries is behaving counterintuitively.

This is most likely China. The selloff of bonds is happening during our evening hours, which is daytime trading hours in Asia.

When Dumb Donald raised the tariffs on China to 125%, the 10-year Treasury rate jumped from 4.1% to 4.5% within hours.

China owns a lot of our debt, so they can manipulate our interest rates very easily, and it appears they are.

I can hear MAGAs right now saying, "FAKE NEWS!...WHO CARES?...BUT MEXICANS!"

Here's why it matters.

Higher interest rates on Treasuries trickles down to higher mortgage rates, higher credit card rates, higher auto loan rates, higher rates on every type of credit.

Higher interest rates means it cost the US government more to borrow money. And Dumb Donald loves to spend and borrow other people's money.

We have $36 trillion of debt, of which Trump contributed $8 trillion. At some point, investors are going to have doubts as to our ability to pay off our debt, and then we will hit a death spiral as they demand higher and higher interest rates to compensate for that risk.

Right now, China is performing a proof of concept. God helps us all if they decide to wage a full-on bond war.

The bond market plunges as crisis brews​

​

Trump didn’t care that the stock market was crashing. Bond yields were the ‘pain point’ that finally got him to pause tariffs​

​

First the stock market crashed, now the bond market is tumbling. This could be really bad.​

​

It "may" happen

The sooner America divorces itself from everything related to the brutal Marxist dictatorship that undergoes open genocides that the world does nothing about because of the money they supply them, the better off America will be.

China is equivalent to Nazi Germany.

I realize that the antiTrump partisans need a new crisis almost every day, but let me just say this to you. If China were "dumping" on a large-scale basis, in other words, unloading its $759 billion fast, the market would likely see sharper chaos, and the Fed could counter by buying bonds to stabilize yields.

Find a better outrage.

 

[whitehall]

The TDS left would see a crisis brewing no matter how good the news was.

 

[g5000]

The sooner America divorces itself from everything related to the brutal Marxist dictatorship that undergoes open genocides that the world does nothing about because of the money they supply them, the better off America will be.

China is equivalent to Nazi Germany.

Then you must be really pissed off that Musk takes the CCP's money and builds his factories there.

He's gotten below market loans from the CCP, tax breaks, and other incentives from the commies.

He also parrots their fallacious narrative about USAID so they can undermine our soft power and replace us around the world.

Yeah. That's why I hate Musk. You?

 

[g5000]

It "may" happen

I realize that the antiTrump partisans need a new crisis almost every day, but let me just say this to you. If China were "dumping" on a large-scale basis, in other words, unloading its $759 billion fast, the market would likely see sharper chaos, and the Fed could counter by buying bonds to stabilize yields.

Find a better outrage.

I did not say they were dumping all their US debt. Comprehension fail.

It only takes a few billion to move the market.

Like I clearly said, which your partisan filters ignored, is that China is performing a proof of concept.

Try again.