GOLDILOCKS
China is beginning to signal a policy change in the buying and selling of government bonds. They are beginning to indicate the desire to sell their bonds to prop up their currency which is a tactic the US currently utilizes.
Japan is also considering this tactic, and other countries will witness the benefits of these changes.
One thing is for certain, it will change the dynamics of trade between countries going forward. This move will indicate a global shift in the way many countries will begin utilizing the same measures that the US does in trade and banking within their own countries.
When we see this trend begin to take place, it will begin putting price pressures on exchange rates going forward and many will begin to move into real values.
© Goldilocks
https://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp#:~:text=Since%20the%20U.S.%20dollar%20has,return%20back%20to%20the%20U.S.
https://www.linkedin.com/pulse/how-do-treasury-yields-impact-currency-prices-cmsprime-8ssnf#:~:text=Treasury%20yields%2C%20which%20are%20the,trends%20and%20make%20informed%20decisions.
https://www.businesstimes.com.sg/international/xi-s-cryptic-bond-comments-hint-pboc-becoming-more-fed
"This bank will issue bonds ( Enjaz ) on behalf of the Ministry of Finance."
👆 Do you see what's going on here? Someone is about to sell government bonds to prop up their currency. A pattern is forming among countries.
© Goldilocks
https://cbi.iq/news/view/2543
Where the U.S. Dollar May Be Headed in 2024 | Charles Schwab
https://www.schwab.com/learn/story/where-us-dollar-may-be-headed-2024
Great expectations: How treasury bonds and interest rate changes impact currencies | OFX (US)
https://www.ofx.com/en-us/forex-news/articles/how-interest-rates-impact-currencies/#:~:text=A%20wide%20spread%20between%20country,will%20have%20the%20opposite%20effect.
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