In Reply to: There is a massive secondary market. posted by mh on April 12, 2025 at 16:00:43
"Yes, dumping U.S. Treasury bonds can drive their yields up. Here's why:
Bond prices and yields have an inverse relationship. When investors sell off Treasury bonds in large quantities, the increased supply in the market drives bond prices down. As a result, the yield (or the effective interest rate) on those bonds rises to attract new buyers.
For example, if a 10-year Treasury bond is sold off heavily, its price will drop, and its yield will increase. This can have broader implications, such as higher borrowing costs for the U.S. government and potentially higher interest rates for consumers and businesses."
If Dumping US Treasury Bonds on the Secondary Market drives bond prices down, that implies that the seller could lose money on the transactions. Does that mean that Canada could have lost money selling its US Treasury Bonds?