China Just Nuked the Bond Market—Without Firing a Shot

China Just Nuked the Bond Market—Without Firing a Shot

Everyone expected a trade war.

China said, “Nah, we’ll just blow up your economy instead.”

After Trump threatened China with 104% tariffs—because nothing says diplomacy like quadrupling taxes on iPhones—most folks assumed Beijing would hit back with matching tariffs.

Classic move, right?

Wrong.

Instead, China pulled out the economic guillotine: they sold $50 billion in U.S. Treasury bonds in one day. That’s not retaliation—that’s a financial earthquake.

See, the Trump team has been quietly hinting they need the 10-year Treasury yield to drop, so the government can refinance its $9 trillion debt bill this year without setting the White House lawn on fire. But when China dumped all those bonds?

Boom—yields went up, not down.

Now the 10-year sits at 4.35%, higher than it was on Liberation Day.

And China’s still sitting on over $700 billion more.

In other words, they’ve got ammo—and they’re not bluffing.

So here’s where things get absolutely cooked:

Stock market? Down.

Bond yields? Up.

Government debt? Now more expensive.

Trump's team? Allegedly surprised Pikachu face.

It’s like launching a trade war and forgetting your enemy owns part of your wallet.

Stay tuned for Tuesday’s White House response—assuming the bond market hasn’t already repossessed the East Wing.