Chapter 885 - 357: Who Is This Kid Hinting At Again? (Part 2)

Chapter 885: Chapter 357: Who Is This Kid Hinting At Again? (Part 2)

Jiang Baichuan wasn’t exactly lying, but Jiang Banxia made a big move on her first day in office.

She wanted to take action on US Bonds.

The ten-year US Bonds have actually appreciated in the past two years.

Especially with the 2.75% coupon rates from a few years ago, the current market price can reach 103, meaning you can buy a $100 US Bond from a few years back for $103.

The domestic scale of holding US Bonds is very large, as much as $3 trillion, and more are bought every year.

The US Bonds from these two years, because of the low coupon rates, are not very popular in the market.

By comparison, the US Bonds prior to 2018 have higher returns, making them more cost-effective at the moment, naturally leading to a certain premium.

US Bonds are essentially money borrowed by the United States, which can freely circulate in the market using the notes, with different coupon rates each year.

The term of US Bonds also varies, with options like two years, five years, ten years, and even thirty years.

The ten-year US Bonds are traded the most, while the thirty-year bonds are traded the least.

For example, a $100 note with a 3.1% coupon rate from a few years ago compares to the 2.4% coupon rate from last year and this year. For investors wanting to maximize interest, they would naturally choose to buy the bonds from a few years ago.

But traders aren’t fools; bonds from a few years ago with high interest rates wouldn’t be sold at face value.

Similarly, a $100 bond in these two years is valued at $100, but bonds from a few years ago with higher coupon rates are often valued at 101, 103, or even 105.

If future US Bonds have increased coupon rates, say to 3%, 4%, or even 5%, then the US Bonds with rates lower than that will see price drops. After all, with high-coupon bonds available, who would want low-coupon ones?

If they’re both earning interest, if they’re both using time, why not buy the ones with high coupons? There’s a whole lot of high-coupon US Bonds that will never run out.

The scale of US Bonds trading is very large, and the United States will, no matter what, maintain the credibility of US Bonds, and there are never any constraints on US Bonds trading, so...

The current scale of US Bonds is $24 trillion, with an average daily trading volume reaching $500 billion.

Previously, Boeing was primarily hindered by its scale. If it could have such a large scale, considering the hot money situation among them, the trading volume would definitely exceed $500 billion.

Moreover, the US Bonds have a wide variety of categories, not just a single type.

Jiang Banxia is globally borrowing and selling US Bonds.

Going straight for US Bonds scared Jiang Baichuan and his group significantly.

Jiang Banxia is operating with leverage.

If the Federal Reserve continues to cut interest rates afterward, they stand to lose a considerable amount of money.

But the money is Jiang Banxia’s, not using their principal, even if it’s all lost, they only lose six points, which is completely acceptable for them to let Jiang Banxia take risks.

They are currently summarizing Jiang Banxia’s US Bonds selling strategies, trying to get someone to learn something from her.

That’s why Jiang Baichuan is very busy.

Li Yang said, "Initially I wanted to discuss something important with you, but since you’re so busy, let’s forget it."

Jiang Baichuan: "..."

He could leave straight away, but thinking of Li Yang’s cunning nature, who knows what sort of trap he’s digging for him.

So he quickly said, "It’s not like there’s not enough time, if you have something to say, just tell me."

Li Yang smiled slightly, "You could check out a flower garden at a certain college in the University of Cambridge. The flower garden is named after someone who hosted a show back home, and that host... I’ll only say this much, this matter has nothing to do with me, I’m out!"

After speaking, Li Yang directly left his seat.

Jiang Baichuan was stunned.

This damned guy, who is he hinting at now?

Wasn’t it supposed to be over? Why is there something more now?

He seriously remembered the keywords, University of Cambridge, a certain college, flower garden naming...

On the surface, these things really reveal nothing.

But he also knew well that Li Yang wouldn’t bring this up for no reason.

"This guy came to the Capital City just to stir up trouble!"

"Truly fearless...still making trouble in the Capital City..."

...

In fact, Li Yang specifically came to the Capital City.

If he stayed in Jiang City, although it’s somewhat freer there, if anything serious happens, no one would handle the aftermath for him.

It’s different in the Capital City, though he’s close to them, the closer they are, the less likely they are to act.

As long as he’s a little cautious in the Capital City, there won’t be any big issues.

After returning to Ruyi Hall, he told Liu Ruyi, "Ruyi, stock up on some food. Let’s try to go out less over the next two weeks."

"Huh? Did something happen?"

"Nothing happened, it’s just that I’m free now and want to discuss some health regimens with you, Ruyi."

"Hmm, okay."

...

At night, Li Yang was completely relaxed.

Liu Ruyi’s touch was nothing short of the ultimate pleasure.

"Ruyi, do you know the Guanshi style?"

"Huh?"

"Do you want to..."

"Hmm."

Liu Ruyi slowly got up, barefoot, moving to the bedside.

Earlier, she had been squatting by the bed, massaging Li Yang, helping him relax.

For her, being able to do something for Li Yang was already very satisfying inside.

Even though Li Yang was right in front of her, she could do anything she wanted.

But as long as Li Yang didn’t say anything, she absolutely wouldn’t do anything inappropriate.

Soon, Li Yang saw Liu Ruyi’s exceptionally beautiful figure, "Ruyi, you’re so beautiful."

Liu Ruyi’s sensual maturity mixed with elegance, no purity, only desire.

Jiang Banxia falls into that pure desire category, but generally only Li Yang could witness her desire.

Liu Ruyi bent down, slowly kissed Li Yang’s earlobe, neck...

The silken drapes fall on a warm spring night, only regretting the mornings that come too soon.

In two lifetimes, Li Yang had never enjoyed such service.