Yuan Oil Contract, page-70

@aldo

"It is simply a matter of appointing agents and brokers out there to move them and the deal is done."

The Chinese cannot do a thing in the Treasury market without the US Treasury/US Fed knowing about it immediately.

When a US Treasury bond/note transaction is contracted, both parties have to notify the US Treasury (who maintains the registry of ownership). An agent may contract on behalf of the BoC, but the bonds have to leave the BoC holding in the US Treasury when they are sold, so the US Treasury know immediately. If they chose, they could refuse to process the transfer.

When the deal is settled T+2, the funds are credited by the buyer to the Bank of China account at the US Fed. The US Fed know - immediately. If the Fed chose, it could freeze payments from that account.

Through the Treasury and the Fed, the US government sees everything first. They can not be ambushed.