Should China sell off US Treasuries sharply?

Updated on Financial 2024-04-09
5 answers
  1. Anonymous users2024-02-07

    No. U.S. Treasury bonds are IOUs issued by the United States** around the world and freely subscribed by everyone.

    The basic condition of this IOU is "to repay the principal at maturity in 30 years, and to pay interest annually (the current annual interest) for 30 years.

    For decades, new bonds have been issued every year, and those that have been issued and subscribed by buyers are circulating on the world's stock markets. The most frequently purchased financial products by investors are**, bonds and **.

    Since its issuance, the United States** has faithfully and rigorously implemented its commitment to monthly interest payments and principal repayment at maturity, and this bond is extremely creditworthy around the world.

    In the investment world, it is a product with higher returns, the most stable and reliable that can be resold with each other (other products such as **, **, have considerable risks, bank deposits are too low interest, and there is a risk of bank failure).

    Broadly speaking, anyone can issue bonds, and if you borrow money from a private person and write a note, it is also a bond. Iraq** has no money, Zimbabwe** has no money, and they can issue bonds. It's just that the kind of bond has no credit and is called junk bond.

    So why is it that US bonds alone are favored by everyone and are willing to hold them?

    In addition to the fact that the United States is strong, there are only two words: credit. For decades, the United States** has strictly enforced the obligation to pay interest and repay principal on bonds issued.

  2. Anonymous users2024-02-06

    Like **, bonds also have a cost, for example, a $100 bond is now 90, and selling is basically losing money, so in the absence of external factors, there is no benefit in selling a large number of US bonds.

  3. Anonymous users2024-02-05

    There are several ways for China to sell U.S. Treasuries: Sell on the secondary market: This is the most common way, and China can sell U.S. Treasuries directly in the U.S. bond market through brokers or other financial institutions.

    Negotiate with the U.S.**: China can negotiate with the U.S. to directly transfer its U.S. Treasury bonds to the U.S., or engage in other forms of grand transactions. **To other countries or institutions:

    China can resell its holdings of U.S. Treasury bonds to other countries or institutions, such as those in Europe or Asia. It is important to note that the sell-off of US Treasuries may have an impact on China's foreign exchange reserves and diplomatic relations, so China needs to carefully consider whether to sell US Treasuries.

  4. Anonymous users2024-02-04

    Hello, according to the question you asked: China can sell the U.S. Treasury bonds in the following ways: 1. Sell in the secondary market:

    China can sell off U.S. Treasuries through hail markets such as the ** exchange. The advantage of this method is that it is relatively simple to operate, but it will be affected by market fluctuations. , 2, directly **to the United States**:

    China can achieve a sell-off by selling US Treasuries. The advantage of this method is that it is relatively safe to operate, but it needs to negotiate with the United States**. It should be noted that the sell-off of US Treasuries has certain risks and implications.

    If China sells US Treasuries on a large scale, it could lead to a collapse in the US Treasury market, which could affect the stability of global financial markets.

  5. Anonymous users2024-02-03

    Summary. Dear, glad to answer for you. China's sell-off of U.S. Treasury bonds was carried out through international financial ** trading institutions.

    Sell through various exchanges such as the New York Stock Exchange and the United States Stock Exchange. Sell to ordinary investors, the general public, or investment institutions, consortium banks. U.S. Treasuries claim to be the safest investment product in the world.

    If you have U.S. Treasury bonds in hand, are you afraid that the U.S. will not cash in when it matures? The interest rate on US Treasuries is also very objective. So U.S. Treasuries are very liquid.

    How China sells US Treasuries.

    Dear, glad to answer for you. China's sell-off of U.S. Treasury bonds was carried out through international financial ** trading institutions. Sell through various exchanges such as the New York Stock Exchange and the United States Stock Exchange.

    Sell to ordinary investors, the general public, or investment institutions, consortium banks. U.S. Treasuries claim to be the safest investment product in the world. If you have U.S. Treasury bonds in hand, are you afraid that the U.S. will not cash in when it matures?

    The interest rate on US Treasuries is also very objective. So U.S. Treasuries are very liquid.

    U.S. Treasury bonds refer to national bonds issued by the U.S. Treasury on behalf of the federal government. According to different issuance methods, U.S. Treasury bonds can be divided into three types: certificate treasury bonds, physical bond bonds (also known as bearer treasury bonds or treasury bills) and book-entry treasury bonds. U.S. Treasury bonds can be broadly divided into three categories: short-term Treasury bills (T-bills), medium-term Treasury notes (T-notes) and long-term Treasury bonds (T-bonds) according to the maturity of the bonds.

    In addition to local investors, U.S. Treasury bonds are also available to countries around the world, and the average annual issuance of U.S. Treasury bonds in previous years was 100 billion US dollars.

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