Life at The Top novel Chapter 1846

This kind of fluctuation was not obvious a

t the beginning, until…

“The US Dollar 20-year treasury bond has

matured and there has been a lot of

selling orders in the market!”

When the news reached Soros, he was

taken aback.

“National debt? Someone shorted the

United States national debt?”

The hair on Soros’ body stood up and he

immediately pulled up the trading chart o

f US Dollar treasury bonds.

As a wealth management product

operating on national credit, treasury

bonds also had a special market for

trading.

It was very simple. If one used 100 US

Dollars to buy the United States’ treasury

bond, and the national debt was due in 10

years, the United States government

promised to give them 120 US Dollars

with principal and interest after maturity.

So, the interest rate in 10 years would be 20%.

However, many people might not be able t o wait for the date of its redemption, so they could choose to sell the treasury bond at a lower price in the market.

There was a more esoteric economic

factor too, which was the fluctuation of the US Dollar exchange rate. Once the US Dollar depreciated, a large number of selling orders would appear in the market, which would cause the value of the United States treasury bond to depreciate rapidly.

Once the treasury bond depreciated, it meant the decline of the country’s credit.

This was a very serious matter.