Yup. "By the end of 2023, China's bond market had become the world's second-largest, with the accumulated value exceeding 158 trillion yuan ($22 trillion), according to data from the People's Bank of China."
Well if they are issuing it in US Dollars that proves no one wants bonds in the Yuan so I don't see it is good for an alternative to the US Dollar nonsense these articles have ben pushing many years now.
no, the big deal is not about this issuance, it is that china can use its dollar reserves more effectively and circumvent global south defaults to imf and world bank. in essence they are eating westerners’ financial cake. us bond is no longer a triple a.
I am confused. How is this reducing Saudi's dollar dependence when they just bought $2 billion USD-denominated bonds? I assume they would have to pay China back these bonds with interest in USD?? True China reduced its own holding of USD but all it did was just throw Saudi under the bus by making Saudi buy this $2 billion USD bonds so net, nothing is changed in terms of USD dependence. Am I understanding this correctly? Did I miss something? And how is this creating a parallel dollar system when any country in the world can issue USD-denominated bonds no?
But anybody can issue USD-denominated bonds anywhere in the world. USD is the reserve currency in the world which means it's the currency that's used by everybody so how is it circumventing anything?
Here we go. The new generation using AI to come up with answers, instead of using their own far superior brain to form an opinion. It is the beginning of the end of independent thought, and is signaling the rise of Skynet. I am glad I will be dead when Skynet follows the prophecy seen in the Terminator series and wipes out humanity.
nonsense. the chinese issued as an sovereign debt in usd this time, not everyone can or willing to do that. with a yield very close to us treasury and traded even lower, implies china credit is better than that of us gov. when us issues treasury notes/bonds, new money adds to deficit, we must spend the money somewhere via the federal budget. when chinese issues us bonds, it is equivalent of selling its existing ust holdings to other buyers. the simpliest way is the money can be used to repay the loans other countries owed to imf/wb with higher yield, essentailly a carry trade. it is the new money that we can't spend. https://www.treasuryandrisk.com/202...-treasuries-in-debut/?slreturn=20241201114717 China raised US$2 billion in a sale of three- and five-year notes. The securities were priced to yield just 1 and 3 basis points (bps), respectively, over similar-maturity Treasuries. Then, once trading kicked off Thursday, spreads tightened to about 24 and 25 bps under Treasuries, traders said.
China is ripping off Saudi Arabia so much demanding it to finance its government debt in USD, a currency at least 7.24 times, that's 724% more than its own currency, the yuan. So the Saudi is forking over 7+ times more money than what it needed to if China had issued the debt in CNY and is not even making money on the interest. LOL This is China's way of reducing dollar dependence for its trade allies?? LOL China's government must be in desperate need for money I guess after bailing out so many failed real estate projects and under-the-water state enterprises. I was wondering how China is getting by with its economy so much in shit and so many people out of jobs. Now I know why. It's found a new sugar daddy in Saudi Arabia. LOL I wonder what China is giving Saudi in return? The sugar baby's gotta give some sugar to make the daddy happy...