What happens to the dollar during a bond sell-off?



What happens to the dollar during a bond sell-off

I am currently holding some USD and the value of the currency has fallen. Why?


China holds up to 10% of us bonds, japan holds another 10%. Each of their holds equate to roughly $731 bn.

The chinese government need to have a weak yaun and a strong dollar, so they buy us treasuries. The buying of Us bonds increases the value of the dollar.

When US bonds are sold off, this decreases the value of the dollar…

There is currently an enormous sell off of bonds. If this sell off becomes severe it could lead to a very nasty reversal of dollar values…


If anyone’s interested in China, there’s a lot more here:


It doesn’t look great though!