China Is Only Country Escalating on Trade, Says Treasury Secretary Bessent (youtube.com)
A reddit commenter: 'As a Chinese, I would say that some country has to stand up and stop the current US.
That's why China is known as one of only two superpowers in the world.'
Indeed, LinkUp job openings from 10k largest US employers seem to be declining.
Levered unwinds, popular basis trade XLR relief would come on board and people loaded up (long treasuries short futures).
Broad-based selling, exiting US bonds, exiting USD, maybe buyers strike. Need to hold US tresuries maybe less (if you reduce trade).
Not just US selling off. Canada, Aus, NZ, UK also. But not Europe. No one knows why or who's selling.
Chinese aren't selling to retaliate or punish, analysts think.
But Amazon cancelled some inventory orders from China. That's money that would have been sent to China an then recycled back into the US bond market. That story will be repeated hundreds of times over the next couple months if the trade war continues.
A trade deficit comes back into the US, because foreigners buy US treasuries. US consumes more than it saves, so US needs foreign dollars to plug US holes when it comes to deficits.