Chinese Domestic Bond Buying Surge Amid US Treasury Sell-Off

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## Overview As a global bond sell-off centers on US Treasuries — despite efforts by US Treasury Secretary Scott Bessent to calm markets — Chinese domestic investors have been rushing to buy government savings bonds, reflecting a striking divergence in fixed-income sentiment (SCMP, September 11). ## Key Details - China's Ministry of Finance issued a fresh batch of savings bonds worth up to 55 billion yuan (US$8.2 billion) on Thursday (SCMP, September 11). - Domestic buyers took to social media to share tips on securing allocations and voiced frustration when they quickly ran out (SCMP, September 11). - This comes as US Treasuries remain at the center of global market jitters (SCMP, September 11). ## Why It Matters This divergence highlights a 'flight to safety' dynamic within China even as US Treasuries — traditionally the world's safe-haven asset — face selling pressure. It reflects both eroded confidence in China's stock market and property sector (pushing savers toward government bonds) and broader questions about US fiscal credibility. This connects to wider narratives about China's reduction of Treasury holdings and reserve diversification, and to global capital flow shifts as investors reassess sovereign debt risk. ## Related Developments Links to China's Treasury holdings reduction, US 30-year bond yields hitting multi-decade highs, and broader concerns about young Chinese investors' risk-averse portfolio choices despite market underperformance.