Editor’s Note
This article discusses reported measures by Chinese authorities to reduce exposure to US Treasury bonds. The information presented is based on unverified sources and should be treated with caution.
The battle for treasury bond hegemony between the US and China is intensifying. Did Chinese authorities recently issue an order to curb purchases of US Treasuries?
– China tells banks to “reduce holdings of US Treasuries”… A war for treasury bond hegemony.
– Curbing new purchases… Instructing institutions with large exposures to reduce positions.
– Targets private and commercial banks, does not apply to US Treasuries held by the government.
– “A risk management measure to prepare for US fiscal instability and increased volatility.”
– Cited ‘risk diversification’ as the reason, but trend of reducing US Treasury holdings strengthens.
– Geopolitical risks like Trump’s Greenland threat expand uncertainties.
– Concerns over exposure to sharp volatility shake the safe-haven status of US Treasuries.
– China’s holdings of US Treasuries are about half the peak level seen in 2013.
– US Treasury yields rose slightly immediately after the “reduce holdings” report.
– Cautious voices also in the bond market… Wall Street’s ‘Bond King’ advises “invest cautiously.”
– US Treasury data shows foreign investors’ holdings of US Treasuries at a record high.
– Purchases by Norway, Canada, Saudi Arabia, etc., offset the reduction by China.
The global diamond giant De Beers has been put up for sale? This is a consequence of the recent sharp and steep decline in diamond prices.
– The fall of the ‘eternal gem’ diamond… The No.1 company De Beers is for sale.
– Diamonds plummet sharply amid a craze for gold and silver as investment tools.
– Anglo American, De Beers’ largest shareholder, proceeds with sale process.
– Anglo American aims to “sell De Beers or complete an IPO.”
– De Beers, founded in 1888, dominated the global diamond market.
– Diamond market slump contrasts sharply with the rally in gold and silver.
– US import tariffs on India, a major diamond processing country, deal a ‘blow’.
– Faded diamonds, emergence of lab-grown diamonds, even talk of the end.
– ‘Surat, India’, the global hub for diamond cutting and polishing.
– ‘Diamond City’ Surat flooded with unemployed as factories close down.
– Collapse of China’s diamond market… Chinese demand plunges by up to 50%.
Tonight (11th), the US January employment report will be released. The previously announced December retail sales unexpectedly stagnated, causing a shock. How do you forecast the employment indicators?
– US December retail sales MoM stagnated at 0%… Significantly below expectations.
– Household living cost burdens suppressed spending during the December holiday shopping season.
– Clothing and furniture store sales declined… Building materials and sporting goods store sales increased.
– Restaurant sales, a ‘barometer for retail’, slightly decreased in December.
– ‘K-shaped’ economic phenomenon where low-income groups increasingly reduce spending is evident.
– Hassett: “Employment numbers will be lower… due to slowing population growth and productivity improvement.”
– Remarks made two days before the January jobs report release… Treasury yields fell.
– Mentioned a sharp rise in productivity growth rate… Emphasized “no fundamental problems.”
– US January employment report to be released tonight… Expected increase of 69,000.
– January unemployment rate forecast at 4.4%… Recorded 4.5% last November.
After loans were blocked by the June 27 measures, funds raised by selling stocks and bonds rapidly moved into the housing market?
– “After loans were blocked, they sold stocks to buy houses”… Over 2 trillion won moved.
– Over 2 trillion won flowed into housing funds in the six months immediately after the June 27 measures.
– ‘Money move’ peaked last October… Regulations and stock market rise acted as catalysts.
– Concentration of funds in Gangnam area is clear… “Psychology of housing as a necessity and safe asset.”
– Fund-raising plans even included overseas funds and proceeds from selling cryptocurrencies.