The impact on the United States is as follows: 1. The most direct impact on the United States is to make the price of the United States debt plunge.
As a result, investors in the international market will be discouraged from buying US bonds and the US bond market will be in a downturn.
2. Selling US Treasuries will also make in the short term.
At the same time, as the amount of funds raised by the US Treasury bonds decreases, the US has to raise funds through other ways, which will increase the financing cost of the US society and slow down its development rate.
3. Push the market up and raise interest rates indirectly.
The selling of US Treasuries caused the price of US Treasuries to plummet, because the bond price and yield have an inverse relationship, that is, the lower the bond price, the higher the yield. If the yield skyrocketed, the market interest rate would rise to a certain extent, resulting in an indirect interest rate increase.
4. U.S. bond holdings shrink.
The selling of US bonds will also have certain effects on the countries holding US bonds, among which the most direct effect is that the selling of US bonds will cause the price of US bonds to plummet, thus leading to the shrinkage of foreign exchange assets of the countries holding US bonds.
