MarketsInsider/Harry Robertson/8-16-2022
“Analysts have put forward various theories as to why China has slashed its bond holdings in recent months. Most suggest Beijing is trying to boost the yuan against the dollar, as it has become somewhat more nervous about holding US assets given the recent rise in geopolitical tensions.”
USAGOLD note: With China and Japan – the biggest foreign buyers – out of the Treasuries market, one wonders how far the Fed can go with its quantitative tightening program before the US Treasury hits the wall. A related question concerns what China might be doing with its massive dollar reserves in place of buying US debt.
