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China knows Trump wants lower interest rates so Xi is dumping massive amount of US treasuries to push interest rates higher
X ^ | 4/7/25 | Jack Posobiac

Posted on 04/07/2025 4:56:50 PM PDT by hardspunned

China responds by selling another $50BN in TSY. Oh btw, the yield on 10Ys is now almost unchanged from Liberation Day!

(Excerpt) Read more at x.com ...


TOPICS: Business/Economy
KEYWORDS: bonds; china; treasuries
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How will Trump respond?
1 posted on 04/07/2025 4:56:50 PM PDT by hardspunned
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To: hardspunned

The thing about that strategy is there are those on the other side with bigger balance sheets who will gladly buy all China has to sell. The bond market is too big to push around for long. Xi is an idiot.


2 posted on 04/07/2025 4:59:53 PM PDT by HYPOCRACY (Long live The Great MAGA Kangz!)
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To: hardspunned

China has so much debt they’ll have to concede. In exchange Trump will be cordial. Also Trump will make BTC very valuable so that China can pay off their debts. This will avert WW3.


3 posted on 04/07/2025 5:01:49 PM PDT by IllumiNaughtyByNature (Polls are designed to sell more ads & polls only. If it's not a horse race the money dries up.)
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To: IllumiNaughtyByNature

Sort of like how Reagan had the Soviets by the b@lls with Star Wars and oil prices.


4 posted on 04/07/2025 5:04:00 PM PDT by OttawaFreeper ("The Gardens was founded by men-sportsmen-who fought for their country" Conn Smythe, 1966 )
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To: IllumiNaughtyByNature

BTC. Bitcoin? Eventually, I’m going to get more curious and maybe a little more weak. I’ll want to find some small way to invest in Bitcoin without taking to great of a risk, if that’s even possible. Sector Funds?/ Mutual Funds?

Perhaps there is no other way to purchase and hold (vs quickly trade) Bitcoin, than to walk a tightrope. Some ropes are higher off the hard stone floor than other ropes.


5 posted on 04/07/2025 5:08:48 PM PDT by lee martell
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To: OttawaFreeper

Russian crude touched $50 a barrel today. That’ll get Putin’s attention.


6 posted on 04/07/2025 5:10:08 PM PDT by hardspunned (Look for the“Putin Stooge” libel, news from Ukraine you’ve gradually grown to trust over 36 months)
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To: dadgum

To hell with the CCP.


7 posted on 04/07/2025 5:17:42 PM PDT by dadgum (Fight to WIN or do not fight all)
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To: OttawaFreeper

Give Chernobyl some credit too.


8 posted on 04/07/2025 5:20:08 PM PDT by Wally_Kalbacken
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To: lee martell

https://www.fidelity.com/etfs/crypto-funds


9 posted on 04/07/2025 5:22:23 PM PDT by hercuroc
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To: hercuroc

Oh, Fidelity offers them?
I already have some money with Fidelity.
I’ll have to look into this. Thx!


10 posted on 04/07/2025 5:24:41 PM PDT by lee martell
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To: lee martell

You can also use an app like Coinbase to make small purchases. The fees are high though.


11 posted on 04/07/2025 5:35:52 PM PDT by HYPOCRACY (Long live The Great MAGA Kangz!)
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To: dadgum

They killed a Million Americans.


12 posted on 04/07/2025 5:42:45 PM PDT by cowboyusa
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To: lee martell

You can buy some MSTR check it out


13 posted on 04/07/2025 5:53:52 PM PDT by calljack (Stealing the 2020 Election will go down in history as the worst political miscalculation of all time)
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To: calljack

MSTR; MicroStrategy Inc.
At typical price of about $268.14 a share, if I bought, I would start off with just one or two shares. Wait and study the activity for a while.


14 posted on 04/07/2025 6:13:02 PM PDT by lee martell
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To: hardspunned

All the drama.

Trump should say, “Let’s come back in six months” and leave it at that. China’s managed economy is a mess already. They have a lot more to lose than the US.

Everyone getting worked up abut this is thinking in terms of days. We should start looking at years, not days.


15 posted on 04/07/2025 6:36:02 PM PDT by Vermont Lt
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To: hardspunned

If China dumps a bunch of Treasury’s, then the price will go down, and new Treasury’s will be able to be sold at lower rates, which is what Pres. Trump wants anyway. Who will want to buy T-bills at the low rates of the bonds China owns, when they can get 4% on new ones? There’s only been two times in the last 25 years when the interest rate has been as high as now, and the last time was over 10 years ago. Unless the Chicoms bought a bunch of 30-year bonds back in 2008, they don’t really have anything worth selling.


16 posted on 04/07/2025 6:44:46 PM PDT by VanShuyten ("...that all the donkeys were dead. I know nothing as to the fate of the less valuable anima)
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To: VanShuyten
If China dumps a bunch of Treasury’s, then the price will go down, and new Treasury’s will be able to be sold at lower rates, which is what Pres. Trump wants anyway.

Bond prices and bond yields are inversely related. As the price of a bond goes down, its yield goes up.
17 posted on 04/07/2025 7:26:01 PM PDT by Chad_the_Impaler
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To: VanShuyten

You have no idea how it works. The lower the bond’s price the higher the fixed yield relative to a price.


18 posted on 04/07/2025 8:20:18 PM PDT by NorseViking
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To: Chad_the_Impaler; NorseViking

The point is that with the low interest rates over the last 25 years, the bonds that the Chicoms own would have to be sold for less than they spent on them. I don’t think they would do that since their economy isn’t all that great right now, so the biggest the discount could be is for the very low interest amounts. That would be competing with new US bonds at much higher rates.


19 posted on 04/07/2025 11:43:34 PM PDT by VanShuyten ("...that all the donkeys were dead. I know nothing as to the fate of the less valuable anima)
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To: hardspunned

Balance of trade based tariffs are an impossible situation - someone has to get richer and someone has to get poorer.


20 posted on 04/08/2025 4:54:20 AM PDT by PIF (They came for me and mine ... now its your turn)
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