I may know why China is selling US bonds and buying gold. Could it be because China can't pay its old bonds to US bondholders?

[Mac1958]

If US inflation increases and interest rates rise, the value of Treasuries drops. So they're moving big time into assets that can ride inflation and volatility. And they're certainly not the only country doing that, as Japan has been selling Treasuries too.

Also, as all global investors know, the US is no longer a stable investment for bonds, having turned into a purely transactional, dangerous, predator country. They're all looking for other, more stable alternatives. They just no longer trust us.