China is Dumping US Treasuries

"China sold off the highest level of US Treasuries in nearly two and a half years in the month of  March. Meanwhile, there are renewed fears the Chinese could implement its “nuclear options” and sell off even more US debt in retaliation for US trade war tariffs."

"China sold $20.45 billion in Treasuries in March. That was the biggest US debt dump by China since October 2016. After a four-month pause, the big March sell-off resumes a trend of Chinese Treasury divestment we saw in 2018. China shed nearly $50 billion in US Treasuries last year (...) The Chinese currently hold $1.121 Trillion in US debt. That’s the lowest level since May 2017."

- in Schiff Gold

Related trading instruments: 10- year U.S. Treasuries, iShares Barclays 20+ Year Treasury Bond ETF (TLT)

Thoughts On The Trade War

While it is true that the Chinese have illegally appropriated huge quantities of American intellectual property, I believe that we have received greater benefits in return. Without the cheap goods produced in China, prices may very well have been much higher for vast quantities of key products for U.S. consumers. And without Chinese purchases of U.S. debt, interest rates could have been much higher, making borrowing more expensive for both businesses and consumers. It’s hard to quantify just how important these benefits have been for an economy such as ours, which has been driven for decades by borrowing and spending.

Trade War: "You don't win a war by shooting your own troops!"

The idea that we have more weapons in the trade war because we can tariff more products is wrongheaded. Tariffs hurt the country that imposes them the most, not the other way around. You don't win a war by shooting your own troops!