/biz/ - Business & Finance

>>56025510 >>56025522 >>56025546 >>56025560 >>56025597 >>56025674
For god sakes folks on /biz/ are dumb af.

>dumps $100B in US treasuries
>all bonds bought before 2023 were sub 0-3% junk
>treasuries normally lasting 20-30 years
>inflation ate away at all that cash
>now selling at a loss too
If they were SMART then they should have sold out of US treasuries when rates were LOW like during March 2020.
The Fed wanting to lower the interest rate would have had to buy up their 1-3% bonds for a premium.
Instead they held USD even as we've had massive inflation. If they could have bought $100B big macs in 2019 then that same USD would probably only get them $50-80B big macs due to inflation.
Also their bond rates are likely 0-3% given that's been our rates the last 10-20 years. Right now the Fed has short rates at 5% so they'd have to sell those bonds at a steep loss.

Real question is:
>Why would China sell at a loss?
Answer is because they HAVE TO in an attempt to prop their currency amid a collapsing RE market, 30%+ youth unemployment, and to prop a declining Yuan to USD (China's cut to 3.45% vs US 5.5% rate).