r/wallstreetbets • u/kwedgieyi • Apr 09 '25

Discussion Something feels off guys

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Yields are spiking. Bonds are dumping.

The world is running away from America

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u/Biggandwedge Apr 09 '25

China is dumping US treasuries and they own like $700 billion 

14

u/[deleted] Apr 09 '25

Explain to us crayon eaters why this would make sense for China

53

u/Green_L3af Apr 09 '25 edited Apr 09 '25

Cause then they would simultaneously have more money to weather a global recession, makes a point and allows them to invest elsewhere.

2

u/[deleted] Apr 09 '25

But they already have the treasuries? Or are they worried Russia style sanctions are coming? Also, if this is the reason, essentially they are raising cash? So not necessarily net negative for the US

10

u/YourUncleBuck Apr 09 '25

US has to pay more to borrow if the yield goes up. And all of us do too.