Friday, April 11, 2025

Is China seling some or all of it's treasury bonds in response to Trump's Tariffs? (question for PI AI)

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Is China seling some or all of it's treasury bonds in response to Trump's Tariffs?
 
PI AI:
It seems that there has been a sell-off of US government bonds in response to the escalating trade tensions between the US and China. China is the second-largest foreign owner of US Treasury bonds, and the falling demand for these bonds suggests a loss of confidence in the US financial markets. The yield on 10-year Treasury bonds has risen to nearly 4.6%, the highest level in some time, as investors react to the uncertainty surrounding the trade war. It’s important to keep in mind that the bond market is often seen as a barometer of economic health and confidence, so this sell-off could be an indication of growing unease among investors.

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