risk of default is low, since foreign governments need to support it. just like china, it holds too much already, either buy more or loss all, what will you do. compare to other investments, risk of us t-bill is still low, so mf or big corp will still use it to balance their portfolio. in theory, us t bill is considerate a risk-free investment.
in short term, us exchange rate is still high, but long term should be close to 1-1 |