Group 1 - The U.S. Treasury Department reported that China reduced its holdings of U.S. Treasury bonds by $8.2 billion in April, totaling a $27.1 billion sell-off in March and April combined, raising concerns in the U.S. about the future of its debt buyers [1] - The Trump administration's proposed "Big and Beautiful Act" aims to increase the debt ceiling by $5 trillion, but the Federal Reserve's refusal to lower interest rates complicates the situation, as the U.S. still relies on China as a key buyer of its debt [1][5] - The overall U.S. debt market is facing challenges, with rising yields and falling prices indicating an oversupply and insufficient demand, leading to a decline in confidence in U.S. debt [5][7] Group 2 - The upcoming U.S.-China negotiations are focused on opening Chinese markets to U.S. goods, as China has significantly reduced its purchases of U.S. agricultural products and oil, which is a concern for U.S. lawmakers [3][9] - The U.S. Treasury's total debt has surpassed $36 trillion, with a rapid increase of $1 trillion in less than six months, while foreign ownership of U.S. debt has decreased from 45% in 2014 to 28% in 2023 [5] - The Federal Reserve's decision to maintain interest rates is influenced by multiple factors, including the need to stabilize prices and avoid political pressure, while also adjusting economic growth and inflation expectations [7][9]