finance

China is dumping U.S. treasuries and buying gold instead. Seems like a good strategy

🇧🇷🇺🇸 - Book: Making Things Think: https://holloway.com/mtt Investor in Wander, Carry, Footprint, Merkle Manufactory (Farcaster), Dynamic, Paragraph

building @revealcam | previously @perl, cofounder SBLY.com, eng at Stripe | alum South Park Commons | peter-kim.com

I hope this is not a harbinger of war in the South China Sea or Taiwan.

somebody is going to buy BTC. Help diversify central bank assets.

And next we will read that China is buying BTC.

And a lot of what they are doing is to field BRICS currency. Makes less sense to have your own currency and be sitting on a ton of US Dollars as a backing. This makes total sense from that perspective.

not necessarily

due to rate hikes since 2022, the market value of their Tsy holdings has been going down. Higher yield = lower price = discount to par

so it becomes a lot more complicated to know whether they are actually selling T's or not or whether their MtoM P&L is just going down.