Recently, the US debt market has been bustling, resembling a financial version of (Game of Thrones)! China is performing an 'elegant exit', with holdings at a 16-year low
On the other hand, a mysterious player, stablecoins, suddenly emerged, ready to be the 'sucker'. Let's indulge in this international financial drama～
China: The 'decluttering' master of US debt 🧘♂️
Latest data shows that China reduced its US debt holdings by $8.2 billion in April, bringing the total to $757 billion, a new low since 2009! This move started during Trump's first term, making it the 'longest breakup drama in history' 😂
Interestingly:
China's holdings of US debt have fallen to third place (Japan first, UK second)
Belgian accounts increased holdings by 8.9 billion (market speculates it could be China's 'proxy accounts')
Canada drastically reduced by $57.8 billion due to tariff disputes!
Netizen's brilliant comment: "This reduction speed is more resolute than when I delete my ex's contact!"
US debt market: A large-scale 'failed matchmaking' scene 💔
Société Générale's latest report paints a picture of 'unrequited love':
The US government is crazily issuing bonds: "Come buy me～"
Investors are collectively indifferent: "No thanks"
20-year US debt subscriptions are bleak, resembling being issued a 'good person card'
What’s even more heartbreaking is the yield:
Buying US debt now yields more than five years ago
But everyone has become more cautious
The Federal Reserve's interest rate cut expectations make the situation even more chaotic
The savior is actually... stablecoins?! 🤖💸
Just when US debt was struggling to find a match, stablecoins suddenly broke through:
Last year, it became the third-largest buyer of US debt
Scale surged by 74% to $234 billion
Expected to buy $2 trillion by 2028!
This operation is simply like:
"You all don't want it? Then I'll take it all!"
Bank of America estimates that for every $1 invested in stablecoins, there will be an additional demand of $0.9. Netizens joked: "So the crypto circle is the true fan?"
Future plot prediction 🎬
China: Continuing an elegant reduction, but may quietly buy back under a different 'proxy'
Japan and the UK: Temporarily stabilizing their 'creditor' status
Stablecoins: Rising from supporting role to leading role
Ordinary investors: Continuing to watch the drama
This grand play tells us: the international financial market is always more exciting than TV dramas! What do you think about the future trend of US debt? Feel free to leave your predictions in the comments section～👇
(Friendly reminder: This article is for entertainment purposes only, investment involves risks, and watching the drama should be done with caution 😉)