China decides to impose a 25% punitive tariff on 106 items U.S. goods (worth US$50 billion in total)

[nang2]

VN will buy all US soybean when US buy all VN seafood.simple win-win for VN-US.

VN barely produces much soybean for its own consumption. Its local production is only 1/10 of the total consumption.

 

[comfortably_numb]

Yes, I know. When supply overwhelms demand, the price goes down. Remember, it is the price of bond. When its price goes down, its yield goes UP.

And how exactly would that help China's export industry if you are hell bent on depreciating the USD? OTOH, it will give Trump's policies a fillip.

 

[Adam WANG SHANGHAI MEGA]

And how exactly would that help China's export industry if you are hell bent on depreciating the USD? OTOH, it will give Trump's policies a fillip.

yes a fillip to shut down the federal government!

 

[comfortably_numb]

We did not want to and did not start the war,apparently,all other countires failed to stop US to start one!As chinese officials said:We do not rule out any options!


if the us gov bpnds is 0% rate ,will you or your gov still buy it?!
There are always better options !

If the bond yield nosedives to 0% because of China how much will the other countries holding them will earn? Food for thought right, would China be popular thereafter, I ask again?

 

[Adam WANG SHANGHAI MEGA]

If the bond yield nosedives to 0% because of China how much will the other countries holding them will earn? Food for thought right, would China be popular thereafter, I ask again?

i am asking you now ,who started the war???

 

[nang2]

if the us gov bpnds is 0% rate ,will you or your gov still buy it?!
There are always better options !

A little nitpicking. What is this 0% rate? Is it the bond coupon rate (interest rate) that is determined at the time of issuing or the actual yield rate reflected in the market? Bond with 0% bond coupon rate can still be sold with discount, which means the market value of the bond is less than its face value. There are many such bonds in the market. It is the yield rate that investors care about, not much with the coupon rate. So, nobody may buy bonds with 0% yield but some will with 0% bond coupon rate (interest rate).

 

[Adam WANG SHANGHAI MEGA]

i am asking you now ,who started the war???

There is no absolute neutre on this planet!
During WWII,US sold steel to JAP to make bombs droped in CHINA,did the jap feel grateful to US?!

 

[nang2]

And how exactly would that help China's export industry if you are hell bent on depreciating the USD? OTOH, it will give Trump's policies a fillip.

Since you decided to change your subject, I will not continue the topic about yield/price of bond with you anymore.

 

[comfortably_numb]

yes a fillip to shut down the federal government!

With a 4:1 deficit in your favour, you can only wish!

 

[Adam WANG SHANGHAI MEGA]

i

A little nitpicking. What is this 0% rate? Is it the bond coupon rate (interest rate) that is determined at the time of issuing or the actual yield rate reflected in the market? Bond with 0% bond coupon rate can still be sold with discount, which means the market value of the bond is less than its face value. There are many such bonds in the market. It is the yield rate that investors care about, not much with the coupon rate. So, nobody may buy bonds with 0% yield but some will with 0% bond coupon rate (interest rate).

talking about 0% yield rate!

There is no absolute neutre on this planet!
During WWII,US sold steel to JAP to make bombs droped in CHINA,did the jap feel grateful to US?!

CHINA does not want to hurt other countries but US at this trade war ,but no garantee offered though feel sorry for any related cacausties!
US wants to stop CHINA become high tech leaders by using named excuses,we have no choice but fight back with all power!

 

[comfortably_numb]

Since you decided to change your subject, I will not continue the topic about yield/price of bond with you anymore.

Which part of driving the price down do you not understand. Will China dump all their bonds in a dustbin?? Or do they need to find buyers to that effect. Do not extrapolate.

 

[Adam WANG SHANGHAI MEGA]

Which part of driving the price down do you not understand. Will China dump all their bonds in a dustbin?? Or do they need to find buyers to that effect. Do not extrapolate.

as i said ,very easy,in public market,if us invalidate our bonds we freeze all us companies wealth in CHINA!
We will see who will lose more!

We did it one time when we found our republic in 1949.
but other countries companies,relax,CHINA knows that only america is looking for economic hegemony,so the target is US companies.
CHINA can not tolerate US win win and everybody lose lose policy!

 

[nang2]

Which part of driving the price down do you not understand. Will China dump all their bonds in a dustbin?? Or do they need to find buyers to that effect. Do not extrapolate.

It appears that you won't understand the basic idea of supply and demand. Why would China dump the bonds in a dustbin? They can easily find buyers with lower prices. Lower price, more demand. That is the basic law of supply and demand.

 

[comfortably_numb]

It appears that you won't understand the basic idea of supply and demand. Why would China dump the bonds in a dustbin? They can easily find buyers with lower prices. Lower price, more demand. That is the basic law of supply and demand.

Let me give you the basic idea of demand and supply. A massive sell off of treasuries will drive the prices so low that you won't even recover the principal amount of the bonds. Would you be willing to sell US treasuries at a loss is the moot question here. As I have already said you aren't exactly going to dump them in a dustbin in a single go!

 

[nang2]

Let me give you the basic idea of demand and supply. A massive sell off of treasuries will drive the prices so low that you won't even recover the principal amount of the bonds. Would you be willing to sell US treasuries at a loss is the moot question here. As I have already said you aren't exactly going to dump them in a dustbin in a single go!

Not really. You only need to lower your price to be less than other sellers. That will either force those sellers to match the price or stay out of market.