We issue our own Treasury bonds, so why buy US Treasury bonds?

The first question is, why do we issue government bonds? As the name suggests, treasury bonds are state bonds, which are simply the creditor's rights relationship formed by the state's capital turnover difficulties, raising funds from the public, and paying interest. In the final analysis, it is two words, lack of money, and our usual loans are of the same nature, which is a debt behavior, because there is a national credit endorsement behind the treasury bonds, the risk of default is low, and the interest rate is usually higher than the interest rate of bank deposits in the same period, so the public will choose to hold treasury bonds as investment and financial management.

The second question is, why do we still have money to buy US Treasury bonds, since we ourselves are short of money? Many people do not understand China's holding of U.S. Treasury bonds, and they say at every turn that they have sold U.S. bonds, and what should the United States do if they do not repay the U.S. bonds that China bought? It can only be said that everyone is overly worried, to give an example that is very easy for everyone to understand, the state issues treasury bonds, and the state forces you to buy them?

Are you worried about the state defaulting on its debts? On the contrary, in reality, the treasury bonds are open, many people queue up overnight, make appointments in advance, and the market is very enthusiastic, why? Because holders value the safety of treasury bonds and high interest rates, it itself is an active choice to hold, because treasury bonds can meet the needs of the public.

The same is true for China's holdings of U.S. Treasury bonds, of course, because there is a demand for it. Is the state holding U.S. bonds also for investment and financial management? Of course not, China holds U.S. bonds, usually as foreign exchange reserves, and in order to balance the balance of payments and exchange rate stability, each country has more or less its own foreign exchange reserves to avoid abnormal currency fluctuations.

The U.S. dollar is the most important component of China's foreign exchange reserves, because the U.S. dollar is an international currency, and the U.S. dollar is usually used for down payments in the international market, so the U.S. dollar is the first choice for foreign reserves of various countries.

Holding U.S. bonds is equivalent to holding U.S. dollars in disguise, and U.S. bonds have high security, good liquidity, and good interest, which is naturally the first choice for foreign exchange reserves. At present, China's foreign exchange reserves are about 3 trillion yuan, and the scale of US bonds held is about 1 trillion US dollars.

Why is our country buying U.S. Treasury bonds? - Fire.

Because the U.S. Treasury bonds** are cheaper, and the later returns are relatively large. Therefore, most people choose to buy US Treasury bonds instead of buying China's.

Because the U.S. Treasury bond is foreign exchange for us, and the U.S. dollar foreign exchange, as the world's common currency, is directly linked to ** and can be freely used for international settlement.

I think it's because most people think that the U.S. Treasury bond will be the best, and many people think that the domestic power is relatively large, so they will choose the U.S. Treasury bond.

This is determined by the US dollar; The U.S. dollar is the universal currency in the world today, and it is the first ruler to measure wealth. The United States must provide a steady stream of money to go out and keep printing it; But the more it is printed, the less valuable the currency becomes, so the United States must issue Treasury bonds to recover these dollars, and the question is whether the United States relies on borrowing and spending to maintain its economy, or whether it is arranging troops all over the world and the fiscal revenue cannot be maintained, so it must rely on the issuance of Treasury bonds to sustain it.

1. Investment needs: U.S. Treasury bonds are bonds issued based on the credit of the U.S. state, and the investment risk is small, which is a stable choice for cheating investors;

2. Avoid foreign exchange shrinkage: Since the US dollar acts as a world currency in the market, the purchase of US Treasury bonds can avoid foreign exchange shrinkage to a certain extent;

4. Liquidity of U.S. Treasury bonds: The liquidity of U.S. Treasury bonds is relatively good, which means that the exchange between U.S. Treasury bonds and the U.S. dollar is more convenient and direct.

That's why you bought U.S. Treasuries.

Treasury bonds are a kind of bonds that are issued on the basis of national credit. For the state, treasury bonds are a way for the state to raise funds from the society in the form of bonds, which essentially belongs to the bond-debt relationship. In the actual economic and economic market, there are generally three forms of treasury bonds, namely, voucher treasury bonds, book-entry treasury bonds, and bearer treasury bonds.