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Stagflation Fears and Soaring US Yields: S&P 500's Next Move
In October, China's holdings of US Treasury bonds hit their lowest level in over 15 years! Is the trend of reducing US Treasury bonds beginning to spread Global?
① On Thursday local time, the USA Treasury released the International Capital Flow Report (TIC) for October 2024; ② The report showed that the amount of US Treasury bonds held by foreign investors ended five consecutive months of growth in October; ③ Led by Japan and China, as many as seven of the top ten "creditors" of the USA chose to reduce their Shareholding that month. Meanwhile, China's US Treasury Hold Positions further hit a new low since 2009.
The Federal Reserve's hawkish actions have triggered a significant change in U.S. Treasury bonds! The yield curve has reached its steepest point since 2022.
Long-term USA government bonds weakened on Thursday, causing the yield curve to steepen significantly, returning to levels seen about 30 months ago.
Are people starting to bet on the Federal Reserve raising interest rates? The U.S. 10-Year Treasury Notes Yield has increased for nine consecutive days!
① After the Federal Reserve implemented a hawkish rate cut and expected to slow down the pace of easing next year, some records of sell-offs in the U.S. treasury market were further broken; ② The benchmark ten-year U.S. treasury yield experienced a "nine-day rise" on Thursday, while the yield curve reached the steepest level in about 30 months.
The USA government is out of money, shutting down in a day? Trump: Permanently eliminate the debt ceiling!
Trump insists on requiring Republican lawmakers to suspend or raise the debt ceiling before he takes office.
The top three "creditors" of the USA saw a decrease in their holdings of US Treasury bonds in October, with all foreign capital net inflow exceeding 200 billion dollars.
In October, Japan's holdings of US Treasury bonds decreased by 20.6 billion USD, to 1.1027 trillion USD. Mainland China's holdings of US Treasury bonds decreased by 11.9 billion USD, to 760.1 billion USD. In October, both long-term and short-term US Treasury yields cumulatively increased by about 50 basis points. The total net inflow of foreign capital in October, including long-term securities, short-term US securities, and bank funds, was 203.6 billion USD.