Jiang Baichuan wasn't exactly lying, but Jiang Banxia made a big move on her first day in office.
She wanted to take action on US Bonds.
The ten-year US Bonds have actually appreciated in the past two years.
Especially with the 2.75% coupon rates from a few years ago, the current market price can reach 103, meaning you can buy a $100 US Bond from a few years back for $103.
The domestic scale of holding US Bonds is very large, as much as $3 trillion, and more are bought every year.
The US Bonds from these two years, because of the low coupon rates, are not very popular in the market.
By comparison, the US Bonds prior to 2018 have higher returns, making them more cost-effective at the moment, naturally leading to a certain premium.
US Bonds are essentially money borrowed by the United States, which can freely circulate in the market using the notes, with different coupon rates each year.
