1. The Federal Reserve's repurchase of government bonds will indeed increase the yield of government bonds in the government bond trading market, but it will definitely not be higher than the interest income of government bonds. In order to facilitate the understanding of some people who don't know much about finance, give a simple example. If you buy 10000 five-year treasury bonds, the annual interest rate of the treasury bonds is 5%. After the maturity of the national debt, the principal and interest are repaid. It's still three years before it expires. If you are short of money, you can sell $65,438+00,000 in government bonds on the American Bond Exchange. Besides the principal of $65,438+00,000, you still have two years' interest income ($65,438+0000). Because the national debt has not expired, the buyer is only willing to pay 15000 dollars to buy your national debt. Now the yield of the national debt market has risen. You can sell it for 18000 dollars, but generally it will not be higher than 1 1000 dollars. Of course, if the current bank interest rate is much lower than the national debt you bought two years ago (even zero interest rate), you may be able to sell 1 1000, but it will never exceed 12500. If you are not in a hurry to spend money, you can not sell government bonds, which is the same as time deposits.
2. Now the Federal Reserve is buying back government bonds, which lowers the yield of government bonds in the bond market. If China sells US Treasury bonds now, it will definitely increase the return on investment. In addition, China's sale of US Treasury bonds can also reduce the investment risk under the US financial crisis. However, it is not a short-term investment for China to buy US Treasury bonds with its foreign exchange reserves, and the amount of US Treasury bonds held by China is huge. If you sell in large quantities, it will in turn reduce the yield of US Treasury bonds in the bond market. Therefore, even if China wants to sell US Treasury bonds, the amount is limited, so the income is very limited. On the contrary, the total amount of US Treasury bonds held by China may increase, that is to say, the repurchase of US Treasury bonds by the Federal Reserve has no practical benefit to China. Individual domestic financial institutions may benefit from it, but they will not benefit from China's overall national interests.
3. Asian dollar bond is a form of European bond. It is a long-term bond with dollar face value issued by the government, banks or companies in the Asian dollar market. Such bonds can be issued in small amounts, with low issuance cost, a term of 9- 15 years and a higher interest rate than time deposits. "Asian dollar" refers to the foreign currency deposited in international banks in the Asia-Pacific region. Broadly speaking, the Asian dollar also includes other freely convertible currencies other than the US dollar, which should be accurately called "Asian currency". However, because the US dollar accounts for more than 90% of the trading volume, it is called "Asian dollar". The Asian dollar is actually a part of the euro, and the Asian dollar bond is just a form of the euro bond.