The back story on this may be simple. What will be the loss in value of the US Treasuries held by China when (rather than if) the US raises rates, as it must inevitably do. If any intelligent investor knew that the value of a significant portion of his reserves were exposed to a massive write-down on bonds due to the certainty of an increase of yields in the immediate to near term future, what should they do? Of course they should sell, at a discount, if necessary, in order to get out before the expected devaluation occurs.
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China's Record Dumping Of US Treasuries Leaves Goldman Speechless
The back story on this may be simple. What will be the loss in value of the US Treasuries held by China when (rather than if) the US raises rates, as it must inevitably do. If any intelligent investor knew that the value of a significant portion of his reserves were exposed to a massive write-down on bonds due to the certainty of an increase of yields in the immediate to near term future, what should they do? Of course they should sell, at a discount, if necessary, in order to get out before the expected devaluation occurs.