China May Be Dumping Treasuries And Causing Bond Market Crash

[Nobody911]

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​

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

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

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Probably the Trump administration likes to enjoy the rollercoaster( rising , falling, twisting and turning). lol.

The US Bond Market in alarming situation

The US bond market has recently experienced a significant sell-off, leading to increased bond yields and concerns about the traditional safe-haven status of U.S. Treasuries. This situation has been influenced by several factors:

### Key Events and Causes

1. Bond Sell-off and Yield Increase:
- The sell-off resulted in higher yields, with the 10-year Treasury yield surging by 0.2 percentage points to 4.45% and the 30-year yield exceeding 5% at one point[2].
- This rise in yields impacts borrowing costs globally, affecting loans such as mortgages and credit cards[1][2].

2. Impact of Tariffs and Trade Policies:
- President Donald Trump's tariffs and the ensuing trade tensions have contributed to market uncertainty, potentially driving the sell-off[1][2].
- A 90-day pause on heightened tariffs was announced, but a baseline tariff of 10% remains, maintaining some level of economic uncertainty[1].

3. Loss of Confidence in U.S. as a Safe Haven:
- Analysts fear that major investors, including banks and funds, are losing trust in the U.S. as a reliable investment haven[3].
- This shift could have broader implications for the global financial system[3].

### Who's Behind the Sell-off?

While there are speculations about China's potential role in selling U.S. Treasuries as a form of retaliation, this seems unlikely as it would also negatively impact China by strengthening its currency and making exports more expensive[3]. Instead, the sell-off appears to be driven by broader market dynamics and investor concerns about economic stability and trade policies.

### Other Contributing Factors

• Basis Trading by Hedge Funds: Some analysts suggest that hedge funds' basis trading strategies, involving significant borrowing and leverage, might be backfiring, leading to asset liquidation and contributing to the sell-off[3].
• Global Economic Uncertainty: The overall economic environment, including fears of stagflation and stock market volatility, has intensified investor caution and contributed to the bond market turmoil[2].

In sum, while China and Japan are significant holders of U.S. bonds, the current sell-off is more broadly attributed to economic uncertainty, trade tensions, and market dynamics rather than specific actions by these countries.

sources:
[1] A bond selloff is worrying Wall Street. Here's why it matters for you and the economy.
[2] Sell-Off in U.S. Bonds and Dollar Raises Questions About ‘Safe Haven’ Status
[3] Freak sell-off of ‘safe haven’ US bonds raises fear that confidence in America is fading
[4] Is 2025 (finally) the Year of the Bond?
[5] https://www.cnbc.com/2025/04/09/how-china-could-crush-the-us-housing-market.html
[6]
[7] Top 10 countries which have the largest US treasury holdings - CNBC TV18
[8] Why China Buys U.S. Debt With Treasury Bonds
[9] https://www.morningstar.com/bonds/bonds-take-lead-over-stocks-2025
[10] https://www.bloomberg.com/news/arti...loff-is-worst-since-repo-market-chaos-in-2019
[12] Active Fixed Income Perspectives Q1 2025: A real deal

 

[ThisIsMe]

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.

Lol, were china's bitch either way. Either they hold our nuts in their hands with the treasuries, or they hold our nuts in their hands with tariffs.

Lol, how'd we get here?

 

[kyzr]

Lol, were china's bitch either way. Either they hold our nuts in their hands with the treasuries, or they hold our nuts in their hands with tariffs.

Lol, how'd we get here?

$37T DEBT is how.
Moving 70,000 US factories to China is how
Investing $trillions in China is how
Maybe Wall Street will now realize thet they created the monster that destroyed the dollar?

 

[ThisIsMe]

$37T DEBT is how.
Moving 70,000 US factories to China is how
Investing $trillions in China is how
Maybe Wall Street will now realize thet they created the monster that destroyed the dollar?

I wouldn't blame wall street, I blame the government who spent like a drunken politician (probably pretty accurate), and sold our debt, and our future, to foreign interests.