đš CHINA SETS ITS SIGHTS ON U.S. TREASURIES đšđłđ”
China has priced newly issued USD-denominated sovereign bonds in line with U.S. Treasuriesâa rare and intentional step.
đ Key points:
âą 3-year bonds priced on par with U.S. Treasuries
âą 5-year bonds offered at a +2 bps premium
âą Structured to directly attract global dollar investors
â ïž Why it matters:
This move goes beyond normal financing. It reflects a strategic signal from Beijing as it positions itself within global dollar markets amid a shift toward a more multipolar financial order.
đ± What to monitor:
Foreign exchange movements, demand for sovereign debt, and shifts in institutional capital allocation are now under closer scrutiny.
Bottom line:
China isnât simply raising fundsâitâs testing the benchmark. And global capital markets are watching closely đđ„