this post was submitted on 02 Feb 2026
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Explain Like I'm Five

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Why is China selling US treasury bonds worrying? (www.idnfinancials.com)
submitted 1 day ago by benSunshine@feddit.org to c/explainlikeimfive@lemmy.world
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Are there just consequenses for the US Market or just for the whole World? Everything runs on US Dollars doesn't it?

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[–] deHaga@feddit.uk 7 points 1 day ago* (last edited 1 day ago)

China sells their exports and gets paid in dollars. They use those dollars to buy US govt debt to get paid interest.

If there is no market for US debt, because countries don't like the Trump volatility, the interest the US has to pay increases.

At current rates the US spends more on interest than its annual military budget.

It could get a lot worse. Especially if the dollar continues to be devalued.