On October 9, 2023, the yield on the 10-year U.S. Treasury bond rose to 4.49%, reaching a new high since 2001, causing bond prices to plummet and government borrowing costs to surge. The Asian trading session saw the most market volatility, with investors speculating that China was manipulating U.S. Treasury prices. The U.S. Treasury Secretary reassured that 'the more you borrow, the more power you have,' but this year the U.S. is set to issue $2 trillion in new debt, plus old debts maturing, which means addressing an $8 trillion debt issue. A slight increase in interest rates could cost an additional $100 billion. Trump views the looming debt crisis as unavoidable and can only soften his stance for now.

Amid the turmoil of the dollar, China has quietly increased its gold holdings, raising its reserves for five consecutive months, prompting the market to follow suit, with gold prices rising and the dollar falling. Global investors are searching for new safe assets, and the dollar's share in global foreign exchange reserves has dropped to 58%, down from over 70% twenty years ago.

China does not need to sell off a large amount of Treasury bonds.