The latest data reveals a surprising reality: the world's largest seller of U.S. Treasury bonds is not traditional China or Japan, but the US Federal Reserve. This discovery has caused quite a stir and discussion in the international financial circle.
China and Japan have been the main sellers in the U.S. bond market for nearly two years, but China's reduction of holdings has been particularly eye-catching. According to statistics, in the first two months of this year, China has reduced its holdings of US debt totaling $413 billion, which is a staggering figure. In the past 26 months, China has been reducing its holdings of U.S. bonds for 23 months, and its frequent moves have also attracted widespread attention in the market.
At the same time, Japan has also significantly reduced its holdings of U.S. bonds in recent years, and although its holdings in 2022 were much higher than China's, in 2023, Japan has begun to increase its holdings of U.S. bonds again. This ever-changing strategy shows the flexibility and diversity of countries in responding to changes in the global economy.
In addition to reducing its holdings of U.S. bonds, China has also increased its holdings of gold reserves for 17 consecutive months, which is a thought-provoking signal. At the same time, the Fed's reduction of holdings in the past two years has sparked heated discussions in the market. However, the recent announcement by the Federal Reserve that it will reduce the amount of its monthly holdings has once again ignited speculation and discussion in the market.
In general, countries across the globe have adopted different strategies and actions in response to market changes and economic challenges. The financial landscape of the future is likely to be more complex, and all of this will have a significant impact on the global economy.