China sold a record $53.3 billion of US Treasury and agency bonds in the first quarter of 2024, likely due to escalating trade tensions and a desire to diversify its assets.

This move is raising concerns as China is a major holder of US debt and its actions could impact the US economy. Additionally, China has been increasing its gold reserves, potentially as a way to mitigate sanctions risk.

https://archive.ph/6f6XN

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      A variety of investors purchase the bonds, including US institutions like pension funds and banks, individual investors, foreign investors from other countries, and U.S. federal reserve. The bond market’s liquidity ensures that there’s usually enough demand to absorb these sales without causing major disruptions, as U.S. Treasuries are currently considered a safe.