TENSIONS RISE! China’s US Bond Dump and 181T of Gold Purchases from Europe & the U.S.｜AsianQuickTake

Welcome to Asian QuickTake, your source for insights into global economics, geopolitics, and more. I’m Jacob. Tags: Global Economy, Middle East Tensions, Federal Reserve, U.S. Treasury Bonds, Gold Prices, Financial Markets, Global Risk Aversion, U.S. Stock Market, U.S. Debt, Financial Crisis, U.S. Dollar, Gold Reserves, Central Banks. Here’s your YouTube video description: As tensions in the Middle East rise, so does global unease, and the United States faces significant economic challenges. Federal Reserve Chairman Powell has emphasized the need for further interest rate hikes, but a rapid surge in U.S. Treasury yields has reshaped the landscape, leading to a wave of sell-offs in U.S. Treasury bonds and spiking gold prices. This has triggered increased global risk aversion, with gold, crude oil, and U.S. Treasury yields all soaring simultaneously. The ten-year U.S. Treasury yield has breached the 5% mark, reaching levels not seen since 2007. This has led to a significant capital outflow from U.S. equities and bonds, with potential implications for the financial environment and credit conditions. Despite Chairman Powell’s dovish signals, his comments on U.S. Treasury bonds are seen as influencing the trajectory of rising yields. The sheer volume of U.S. debt issuance adds to the pressure, as the Federal Reserve’s rate hikes could increase the interest payment burden, exacerbating the trend of divestment. Notably, global official institutions are reducing their demand for U.S. bonds. This trend, marked by notable players like Barclays withdrawing from long positions in ten-year U.S. Treasury bonds, indicates a shift in market sentiment. The Federal Reserve’s steady offloading of U.S. Treasury assets is also impacting bond dynamics. Goldman Sachs and JPMorgan have raised alarms about financial risks associated with rising U.S. Treasury yields. The U.S. faces a growing debt burden, setting the stage for potential banking turmoil and corporate debt defaults. Market indicators reveal an elevated risk of U.S. debt defaults, as central banks worldwide participate in the historic sell-off of U.S. bonds. China, in particular, has significantly reduced its U.S. bond holdings. Japanese investors are also selling U.S. securities and corporate bonds. The Middle East conflict has further fueled the surge in U.S. bond yields. Amid these dynamics, gold is gaining prominence as a safe haven. Central banks and investors worldwide are increasing their gold reserves. China, in particular, has become the world’s largest gold buyer, amassing a historic level of gold reserves. Prominent economists like Jim Rickards and Ray Dalio see gold playing a strategic role in international reserve portfolios and as a safeguard against financial system perils. The dominance of the U.S. dollar and the U.S. bond market could be redefined in the face of escalating credit risks. Gold possesses intrinsic monetary attributes and could become a key asset in addressing the mounting U.S. debt. Stay informed about these crucial developments in our ever-changing world. Like, subscribe, and hit the notification bell to follow our discussions on business, geopolitics, global affairs, and economic history. Thank you for joining us, and we look forward to your presence in our upcoming videos. 🌍📈🔔 💯TOP 3 Video China Shocks Yellen With Massive Selling of U.S. Bonds and Buying of Gold ▶ China to Accelerate Dumping of Up to $800bn U.S. Debt ▶ Swiss Sells $36.4 billion U.S. Treasuries ▶ ━━━━━━━━━━━━━━━━━━━━━ ✅ COPYRIGHT DISCLAIMER Asian Quicktake Doesn’t Fully Own Some of the Materials Compiled in Its Videos. It Belongs to People or Organizations Who Ought to Be Respected. If Used, It Falls Under the Following Provisions: Copyright Disclaimer Section 107 of the Copyright Act 1976. “Fair Use“ is Allowed for Purposes Such As Criticism, Comment, News Reporting, Teaching, Scholarships, and Research. ━━━━━━━━━━━━━━━━━━━━━ ✅ If You Are the Owner of the Materials Used in This Video, Let us Know in the Comments or Send a Email to me. We Will Follow Your Request Immediately. ━━━━━━━━━━━━━━━━━━━━━ ✅ FINANCIAL DISCLAIMER This Channel’s Content Should Not Be Interpreted or Construed As Financial Advice. We Are Not, and Do Not Claim to Be, an Attorney, Accountant, or Financial Advisor. This Channel’s Content is Not a Substitute for Financial Advice and is Solely for Entertainment Purposes.