The U.S. media disclosed that the issuance of U.S. Treasury bonds has now encountered difficulties, because the market is not optimistic about the yield of U.S. Treasury bonds, and the U.S. media publicly said that U.S. investors are worried that the market will not be able to absorb more U.S. Treasury bonds, and the United States will issue $23 trillion in Treasury bonds in 2023. U.S. Treasury bonds are in a phase of dynamic growth, and after the maturing Treasury bonds are redeemed, the U.S. Treasury can continue to issue Treasury bonds to obtain funds from the market, so that the United States has more than $34 trillion in national debt today. There are two types of U.S. Treasury bonds, short-term and long-term, and although the interest rate of 30-year Treasuries is high, it does not attract investors' interest, let alone short-term and medium- and long-term Treasury investments.
In order to make up for the fiscal deficit, the US Treasury has to keep issuing treasury bonds, so that the US Treasury bonds have snowballed. U.S. Treasury Secretary Janet Yellen visited China in April, and it is widely believed that Yellen's visit to China is to sell U.S. Treasury bonds. China was once the largest holder of U.S. Treasuries, but now it is much smaller than Japan and is still in the process of reducing its holdings. According to the U.S. Treasury Department's report on international capital flows for January, China has reduced its holdings of U.S. Treasury bonds in January 2024.
Investors are very concerned about the attractiveness of U.S. Treasuries, because they represent the development prospects of the U.S. economy, and now the setback in the issuance of U.S. Treasuries has already indicated that the prospects for the U.S. economy are not optimistic, which has caused investors to worry. 2024 is an election year in the United States, and now a series of actions by the Biden administration in the United States are all for election services, so there is a move to use a knife against China, and the US presidential election will be hyped up, and now the United States has once again taken an aggressive posture. The White House has publicly announced that the Office of the U.S. Trade Representative will launch an "unfair trade" investigation into a number of Chinese products.
In fact, U.S. President Joe Biden has "instructed" the U.S. Trade Representative to impose punitive tariffs on China's steel and aluminum products, and then the USTR has announced an investigation into China's maritime, logistics and shipbuilding industries. Judging from the actions of the Biden administration in the United States, it is already building momentum for the 2024 presidential election and taking action against China, so as to reflect Biden's tough stance on China, so the recent phone call between Biden and China is actually a cover for Biden, and the United States directly wants to punish Chinese products through the "Section 301" investigation, thereby trying to weaken the competitiveness of Chinese products.
According to the analysis of Beacon Front Station, the Biden administration of the United States is full of a tough stance on China, which is also aimed at Trump, because in Trump's tradition, it is inevitable to promise to increase tariffs on China, so Biden has begun to act, so as to try to gain the support of American industrial workers in advance, in fact, this is a routine played for votes. At a time when U.S. products are losing their competitiveness, the U.S. wants to create an atmosphere in which the Biden administration cares about U.S. workers in related industries by smearing Chinese products, highlighting the sinister nature of U.S. politics.