thanks for posting this graphic—truly startling :(
what’s the green portion of the bars represent?
sorry about that question - i see it now
This graph underestimates the extent of the problem because the Chinese have been swapping out of their Agency securities and into Treasuries. So their *net* Agencies + Treasuries exposure is declining in ADDITION to their duration shortening exercise. I expect the yield curve to become INCREDIBLY steep in the next 2 or 3 years.