Not any time soon.
As their currency value goes down those dollar based holdings are looking good.
And, and this is a big AND,
They are trying to devalue their currency relative to the dollar so they are more competitive. If they sale US treasury notes en masse it will lower the value of the dollar negating their currency devaluation making them less competitive. They are in a box. And so are we I might add...
They already dumped a lot of US Treasuries in past years but found it only caused their exports to be less competitive so they stopped the dumping but also stopped the buying. Instead they’ve been buying (using printed Yuan) dollars direct to prop it up against the Yuan but they couldn’t hold onto that scheme.
You are right, the US Treasuries are safe but US Stocks are vulnerable, very. Good point.
Thanks,I think get it. So if it ever gets to the point in the current situation that their one stable asset(USA notes and bills) have to be sold. Then 1929 and 2008 will look like the ‘Good Ole Days”?
Will the two year notes be the ones to watch as the canary in the coal mine?