China’s ‘self-destructive nuclear option’ in trade war: Selling US Treasury bonds

   < < Go Back
from CNBC,

Questions persist that China might stop buying U.S. debt as the two sides engage in a trade war.

The issue arose Monday following a tweet from the editor of a Chinese state-run newspaper.

Most experts think a China exit from the Treasurys market would be a last resort and hurt it more than it might the U.S.

“It’s a self-destructive nuclear option,” said Robert Tipp, chief investment strategist and head of global bonds for PGIM Fixed Income. “Maybe it helps them as a bargaining chip, but it’s endangering the value of something they’re deeply involved in.”

In fact, the move actually could help the U.S.

More From CNBC: