Foreign Central Banks dump record $109 Billion US Treasuries in March

[antonius123]

I never use the word “dump”. It’s used by chinese media, stooges and other posters here including yourself.

Most countries hold US bonds and securities as national reserves. When they now sell it because they need dollar not because they “dump” the dollar because they are desperate.

Nobody here said dump US Dollar.

The problem is with your own IQ

 

[Mista]

They basically export their inflation to the world.

Theoretically that should be the case when they announced QE.

But rather than depreciating, the USD actually strengthen in the past month because worldwide investors generally regard the USD as a safe haven when they cash out of global equities.

HONG KONG, April 2 (Reuters) - The yuan fell to its lowest level in almost half a year on Thursday after the White House's dire warning on the prolonged spread of the coronavirus hurt sentiment and drove investors back to the safety of the U.S. dollar.

The onshore yuan CNY=CFXS lost as much as 0.4% in early trade to 7.1283 per dollar, its weakest since early October, before crawling back to 7.1038 by midday, still down 0.07% from the previous late close.

The offshore yuan CNH=D3 fell to a one-week trough before trading flat at 7.1198 at midday.

Global equities sold off and investors scrambled for dollars after President Donald Trump warned on Tuesday that the United States will face a "painful" two weeks in fighting the pandemic.

The global dollar index =USD was up 0.1% at 99.618, having surged as much as 0.25% in the morning.

While factories in China are gradually returning to work as its new infections fall, they are now facing a collapse in global demand as more countries impose lockdowns and other tough anti-virus measures.

"We are still in a bear market. When you have risk off in equities you would get dollar bids," said Kay Van-Petersen, global macro strategist at Saxo Bank in Singapore.

"Until we are out of that, it's hard for the USD to weaken structurally, not just against G10, but especially against EM and frontier market currencies," he added.

USD/CNY over the past month:

This means that other countries which hold USD actually made money instead. Eg; China's forex holdings in USD is worth more in Yuan terms now.

Nobody here said dump US Dollar.

Read the title.

 

[Song Hong]

I have lots of sympathy for you. I am not sure if you are narrowly focus in your domain, or are you trying to mis-informed by stating partial facts and proscribed reasoning.

Theoretically that should be the case when they announced QE.

But rather than depreciating, the USD actually strengthen in the past month because worldwide investors generally regard the USD as a safe haven.



USD/CNY:

This means that other countries who hold USD actually made money instead. Eg; China's forex holdings in USD is worth more in Yuan terms now.



Read the title.

 

[Mista]

I have lots of sympathy for you.

I have sympathy for you too for creating multiple dupes, Lux de Veritas.

 

[antonius123]

Theoretically that should be the case when they announced QE.

But rather than depreciating, the USD actually strengthen in the past month because worldwide investors generally regard the USD as a safe haven when they cash out of global equities.



USD/CNY over the past month:

This means that other countries which hold USD actually made money instead. Eg; China's forex holdings in USD is worth more in Yuan terms now.

FED announce Infinite QE after investors move their capital from emerging markets to US.
USD value could decrease later if the central banks of countries intervene their market using repo/loan from FED.

Read the title.

The title said: dump US treasuries, not USD. Dumping TN and US government bond actually is getting USD.

 

[Mista]

USD value could decrease later if the central banks of countries intervene their market using repo/loan from FED.

Yeah the USD may weaken when the world economy stabilizes and if the Fed is unable to withdraw liquidity out of the market in time.

 

[Song Hong]

Wrong

Yeah the USD may weaken when the world economy stabilizes and if the Fed is unable to withdraw liquidity out of the market in time.

 

[Mista]

Dumping TN and US government bond actually is getting USD.

Not exactly. In this case, Asian countries are selling US treasuries to get USD and convert them back to their domestic currency; eg, selling off USD to get SGD.

 

[antonius123]

Not exactly. In this case, Asian countries are selling US treasuries to get USD and convert them back to their domestic currency; eg, selling off USD to get SGD.

That still means dumping TN = getting USD

Yeah the USD may weaken when the world economy stabilizes and if the Fed is unable to withdraw liquidity out of the market in time.

Would happen if the investors pull their money back to emerging economies.
The FED will be able to withdraw liquidity from international market by stop REPO.

 

[Mista]

That still means dumping TN = getting USD

And the purpose of 'dumping' treasury notes is to 'dump' USD in this case. This is what the OP is implying by intentionally changing the original title from Bloomberg. And he laughs at my English lmao.

https://www.bloomberg.com/news/arti...banks-sell-109-billion-of-treasuries-in-march

 

[antonius123]

And the purpose of 'dumping' treasury notes is to 'dump' USD in this case. This is what the OP is implying by intentionally changing the original title from Bloomberg. And he laughs at my English lmao.

https://www.bloomberg.com/news/arti...banks-sell-109-billion-of-treasuries-in-march

Still means dumping TN = getting USD.

Even if the OP mean so, the total effect is noting about dumping USD, because they are dumping USD that they get from dumping TN.
Except they are dumping USD from their own reserve (which is USD).

 

[Mista]

Still means dumping TN = getting USD.

Even if the OP mean so, the total effect is noting about dumping USD, because they are dumping USD that they get from dumping TN.
Except they are dumping USD from their own reserve (which is USD).

The OP willfully changed the title from 'selling' to 'dumping' to give the illusion that the USD is collapsing because other countries are 'panic selling at a loss', and he's implying that it's China behind it. He's doing that to feel good. It's as simple as that.

 

[antonius123]

The OP willfully changed the title from 'selling' to 'dumping' to give the illusion that the USD is collapsing because of 'panic selling at a loss', and he's implying that it's China behind it. He's doing that to feel good. It's as simple as that.

Doesn't change the fact that dumping/selling TN = getting USD

USD wont be collapsing as long as world still need USD;

 

[Mista]

Doesn't change the fact that dumping/selling TN = getting USD

You're grasping on semantics while very well knowing the essence of my argument. Pass.

 

[Viet]

Nobody here said dump US Dollar.

The problem is with your own IQ

You are funny. This thread is about „dump“. Check your IQ.