If china wants to sell the t-bills/bonds back to the US, say tomorrow or next year, does the US government HAVE to buy them back?
2007-09-14 10:08:29 · 3 answers · asked by Steve 1 in Business & Finance ➔ Investing
No. In fact, the US Government doesn't "buy them back" until the maturity date. If China wants to sell them, they need to find someone in the secondary market to buy them from them.
In order for them to make the US government buy them back, the bonds would have to have a Put feature. Treasuries do not have embedded puts.
2007-09-14 14:38:30 · answer #1 · answered by Ranto 7 · 2⤊ 0⤋
When you buy a T-bills/bonds, there is a maturity date. The US government is only obligated to pay on maturity date. Any time in between depends on the market demand and supply along with the fluctuation of interest rates. China can sell T-bills/bonds provided that there is a buyer.
2007-09-14 10:19:08 · answer #2 · answered by Matrixcm 3 · 2⤊ 0⤋
you bet ye, and that would be a real disaster.
2007-09-14 11:33:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋