....you'd imagine that if the Fed delays its rate cut, UST would have higher yields for longer and should therefore serve as an incentive to hold,....no, China sees as an opportunity to unload while there remains keen buyers seduced by higher yields.
....at this rate, China would be in the position to unload all of its UST (US Treasuries) in just under 3 years. By then, US can't hold it to ransom.
...imagine what 3 years of gold buying would do to its price. Even without a Fed rate cut.
Worries over security and a further delay to expected interest rate cuts by the Federal Reserve have depleted Beijing’s appetite for US Treasury bills, and its position as the second-largest foreign holder of the financial instruments could be taken by the UK in coming months, analysts warned.
The world’s second-largest economy offloaded US$22.7 billion of the bills in February, with its total holdings adding up to US$775 billion as of the end of that month, according to figures released by the US Treasury Department on Wednesday.
