Livesquawk picking up chatter from Chinese officials
- Officials supposedly recommend slowing or halting US Treasury buying
- They are looking at US debt supply and trade tensions
This is going to add to the bond sell off (rising yields)
This could be very big news given the bond market jumpiness right now. US 10’s have pushed up to a high of 2.571%. The story comes from Bloomberg, and we know how they can spin stuff. The last comment could just make this some posturing over trade arguments with the US but bear in mind that the Chinese are the biggest foreign holders of US debt and all hell would break loose if they started dumping it.
I’ll also add that such news would not be positive for the dollar in the case of rising yields in this circumstance.