> Worth mentioning that lots of buyers is jumping into Chinese bonds over the past week.
How many?
> It feels like the BRICS are taking over as of this month.
Taking over what?
How many?
> It feels like the BRICS are taking over as of this month.
Taking over what?
https://x.com/macropaperr/status/2089255200918007854?s=46
Obviously we don't measure it in "how many traders", but what the effect their trading has on the instruments they buy.
The US Dollar is slipping from the world's reserve currency status and the US treasury is slipping from the default safe haven for liquid assets. The BRICS countries bonds are becoming more attractive as of this month.
Russia is obvious outlier you can’t price well.
If there is any news this month in Chinese bonds it’s a) a crazy upward move that corrected and b) the Chinese authorities have upped the quota on foreign bonds that their asset managers are allowed to buy.
Brazil is a major risk given political turmoil and generalised corruption; Bolsonaro attempted a coup in a country already plagued in history by coups, his son is going to run for presidency and has a chance to win it.
South Africa's economy is in shambles, their electricity grid can barely function, the country is going backwards socially and economically.
Russia I don't think we even need to talk about.
That leaves China and India, China has capital controls and is notoriously difficult to invest in.
I don't think there's much in common with BRICS as it was in the early 2000s when the acronym surfaced, as of now they are very dissimilar societies and economies.
Excepting India, one thing Russia, China, and South Africa all have in common is they're falling into a relationship of economic patronage with China, their erstwhile peer. That may make the term BRICS antiquated in a sense, but now that China has more control over the group it also increases the collective power that China can summon. Whether that power is substantial enough to have become more meaningful than before, I'm not sure. Doesn't seem like the yuan has gained much ground relative to the dollar, euro, or yen.
> The US Dollar is slipping from the world's reserve currency status
As I always like to remind folks, the US dollar is just one of many currencies that banks keep in reserve. There is no status to lose other than being the one held the most. There are also downsides to being the dominant currency - I'm sure you're aware of those, right?
> - and the US treasury is slipping from the default safe haven for liquid assets.
Based on what?
> The BRICS countries bonds are becoming more attractive as of this month.
Are you buying? I'm not buying Chinese bonds. The US stock market is at all-time highs and more people than ever are buying into safe haven American companies.
You should provide more details and context about the cause and effects, why it matters, and what it means. Just saying "people find XYZ more attractive" isn't compelling.
being in an All time high is only better than not being in ATH. With high inflation, it doesn't mean much. It is like Apple every year launching the best iphone ever.
My point is, the OP was just saying stuff without any evidence or even really much personal analysis.
> It is like Apple every year launching the best iPhone ever.
In many respects that is technically true.