> Parallel example: Suppose I hold a vast quantity of exotic options that pay off in some rather specific circumstances -- e.g., Apple shares increasing by more than 10% during January 2025. And suppose I have carelessly mismanaged my financial affairs so that these are a large fraction of my assets, and now I need more money. So I start selling off these options. That will reduce their market price, but that doesn't (unlike most movements in the price of such options) indicate that anyone actually thinks Apple shares are now less likely to gain 10% in 2025-01.
People do, almost by definition - the price is how you express an opinion. At the very least, you've shown yourself to be incompetent, which reduces everyone else's faith in your judgement.
The Chinese government isn't unwinding its position in Treasuries for fun; they're doing it because they think dollars are going to be less valuable in the future, i.e. that China will be importing less and/or exporting more than they had previously thought.
People do, almost by definition - the price is how you express an opinion. At the very least, you've shown yourself to be incompetent, which reduces everyone else's faith in your judgement.
The Chinese government isn't unwinding its position in Treasuries for fun; they're doing it because they think dollars are going to be less valuable in the future, i.e. that China will be importing less and/or exporting more than they had previously thought.