- China bought 1.46 trillion yen ($13.8 billion) in medium to long-term Japanese government bonds on a net basis between April and July. That was 3.6 times more than the same period last year.
- In the same period, the U.S. increased its purchases by only 30%, in comparison. Europe, meanwhile, sold off 3 trillion yen worth of JGBs.
- Yields on such bonds are near zero, making them an unlikely option as an investment. But analysts told CNBC there are other reasons why China would want to buy those bonds.
SINGAPORE — China’s recent purchase of Japanese government bonds surged to the highest level in more than three years – as the country more than tripled its holdings between April and July this year, compared to the previous year.
During those three months in
Any relationship between two entities, either persons or institutions, cannot be established except in accordance with some set of rules. These rules may be unenforceable norms or customs of a group or society, or some explicit laws having a binding and enforceable authority. A contract is a formal structure of a relationship between two or more parties, binding them together into a contractual relationship; and imposing upon them certain obligations and granting them certain rights over each other. In case of any problem with these obligations or rights, law of the land would come into action. But if the contracting parties belong to different lands, then there would arise a question as to law of which land should come into force. If the contracting parties have no earlier consensus over this issue, then it is more likely that the problem would remain unresolved; and one or more parties would … Read More
When we earn less than what we need to spend, what we do is borrow money. The “we” can apply to individuals, to corporations, or to sovereign countries or governments. Often-for governments especially-borrowing money is not a problem. They borrow money to pay for borrowed money, and lenders are easy to find. For example, latest available data show that the total (gross) amount of US government debt (USD21T) is bigger than that country’s gross domestic product, or GDP (USD20T). Stated differently, the current debt-to-GDP ratio of the federal government of the USA is 105 percent.
Some countries even have higher debt-to-GDP ratios: Japan (236 percent), Italy (131 percent), and Singapore (110 percent), among others.
Philippines? The trend over the past decade shows a decreasing rate: from 55 percent in 2008 to 42 in 2017. Amount of total national government debt in 2017 stood at Php6.6T, 67 percent of which was … Read More