The People's Bank of China stopped buying government bonds today! Alas, there is nothing we can do about it, mainly because the RMB has fallen sharply recently.

According to recent data, our government bond yields have fallen below 1.6%, a full percentage point lower than last year. On the other hand, the yield in the United States has soared to 4.7%, a record high since November last year. With such a large yield gap, everyone is running to the US dollar, and the RMB certainly can't stand it.

In addition, Trump is about to take office (January 20), and the market is worried about the imposition of tariffs. The RMB exchange rate against the US dollar has fallen to 7.32, which has been falling for three consecutive months. To be honest, this trend is really worrying.

Some analysts believe that if this continues, it may trigger capital outflows, and some money may go to cryptocurrency markets such as Bitcoin.