Tomorrow, the small days will raise interest rates by 0.75%, the highest rate in the past 30 years!
Key point: The small days hold 1.18 trillion USD in U.S. Treasury bonds. Now, to raise interest rates and pay off debt, an asset swap is needed. Simply put, it means selling USD assets and converting them back to Japanese Yen.
Moreover, this kind of selling is not time-specific and not category-specific; the most liquid and easiest to cash out assets will be sold first. This will also have a significant impact on the market.
The new opportunities will only gradually emerge after this event is settled! When the bad news is exhausted, it becomes good news. For major institutions, it’s also a relatively good timing to enter the market!
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Tomorrow, the small days will raise interest rates by 0.75%, the highest rate in the past 30 years!
Key point: The small days hold 1.18 trillion USD in U.S. Treasury bonds. Now, to raise interest rates and pay off debt, an asset swap is needed. Simply put, it means selling USD assets and converting them back to Japanese Yen.
Moreover, this kind of selling is not time-specific and not category-specific; the most liquid and easiest to cash out assets will be sold first. This will also have a significant impact on the market.
The new opportunities will only gradually emerge after this event is settled! When the bad news is exhausted, it becomes good news. For major institutions, it’s also a relatively good timing to enter the market!