...Trump's tweets can't save the markets from this.
I've always thought that the endgame for the UST bond market was when China and Japan both decided to exit. Moreover, once one of them headed for the exit, the other wouldn't want to be left holding the bag. https://x.com/DonDurrett/status/1911531744869982332
China and Japan are the last two major foreign pillars of UST demand if either exits fully, the other has no incentive to stay and absorb the duration risk solo. This isn’t just market behavior; it’s game theory. No one wants to be the last one holding dollar liabilities when the music stops. What we’re witnessing now isn’t a diversification it’s a controlled dismantling of the old sovereign debt regime. Once the unwind starts, there’s no graceful exit. Just timing. https://x.com/onechancefreedm/status/1911533241053360415
