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“The collapse of US Treasury bonds is imminent, as China frantically sells $50 billion in retaliation. Is there still time for the Federal Reserve to stabilize the market?”
The financial markets have recently descended into chaos! US President Trump has escalated pressure on China, shouting about a global tariff war, causing the stock market to plunge, with even the 'safe haven' US Treasury bonds being sold off. Gold mogul Peter Schiff urgently warns: if the yield on 10-year US Treasuries rises to 4.5%, the Federal Reserve must implement QE (quantitative easing) soon, or the 1987 stock market crash may repeat! The bond market volatility indicator, the MOVE index, has also surged to 139.88, with experts exclaiming: Amid this turmoil, the Federal Reserve must either cut interest rates or inject liquidity to stabilize the market!
The US Treasury market is on high alert, with Tuesday's auction of $58 billion in 3-year Treasury bonds seeing dismal participation, leading to fears for the 10-year bonds on Wednesday and the 30-year bonds on Thursday—if things change, long-term bond prices won't be taken lightly. Trump's actions have caused public anxiety, prompting investors to abandon US Treasuries in favor of German and Japanese bonds for safety.
Even more explosive is the rumor that China is taking drastic measures—selling $50 billion in US Treasuries, driving up software prices and heavily impacting bond prices, directly showing strength against the US! As the second-largest holder of US Treasuries, China holds $760.8 billion in these bonds, but has been continuously reducing its holdings in recent years while aggressively buying gold to support the renminbi, clearly aiming to alleviate its dependence on the dollar.
At the same time, the renminbi has depreciated for five consecutive days, and the People's Bank of China has proposed 'injecting liquidity' into the exchange rate, attempting to counter the US in the trade war. Gold is nearing $3,000, setting a new historical high, as China has increased its gold reserves for three consecutive months, stabilizing the renminbi's confidence. In the ongoing US-China rivalry, is there still time for the Federal Reserve to stabilize the market? We shall see!
The financial markets have recently descended into chaos! US President Trump has escalated pressure on China, shouting about a global tariff war, causing the stock market to plunge, with even the 'safe haven' US Treasury bonds being sold off. Gold mogul Peter Schiff urgently warns: if the yield on 10-year US Treasuries rises to 4.5%, the Federal Reserve must implement QE (quantitative easing) soon, or the 1987 stock market crash may repeat! The bond market volatility indicator, the MOVE index, has also surged to 139.88, with experts exclaiming: Amid this turmoil, the Federal Reserve must either cut interest rates or inject liquidity to stabilize the market!
The US Treasury market is on high alert, with Tuesday's auction of $58 billion in 3-year Treasury bonds seeing dismal participation, leading to fears for the 10-year bonds on Wednesday and the 30-year bonds on Thursday—if things change, long-term bond prices won't be taken lightly. Trump's actions have caused public anxiety, prompting investors to abandon US Treasuries in favor of German and Japanese bonds for safety.
Even more explosive is the rumor that China is taking drastic measures—selling $50 billion in US Treasuries, driving up software prices and heavily impacting bond prices, directly showing strength against the US! As the second-largest holder of US Treasuries, China holds $760.8 billion in these bonds, but has been continuously reducing its holdings in recent years while aggressively buying gold to support the renminbi, clearly aiming to alleviate its dependence on the dollar.
At the same time, the renminbi has depreciated for five consecutive days, and the People's Bank of China has proposed 'injecting liquidity' into the exchange rate, attempting to counter the US in the trade war. Gold is nearing $3,000, setting a new historical high, as China has increased its gold reserves for three consecutive months, stabilizing the renminbi's confidence. In the ongoing US-China rivalry, is there still time for the Federal Reserve to stabilize the market? We shall see!
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