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Thread: China to Slow or Stop its Purchasing of US Treasuries

  1. #1

    Default China to Slow or Stop its Purchasing of US Treasuries

    Stocks down, dollar down, oil up, gold up.

    China added to bond investors’ jitters on Wednesday as traders braced for what they feared could be the end of a three-decade bull market.

    Senior government officials in Beijing reviewing the nation’s foreign-exchange holdings have recommended slowing or halting purchases of U.S. Treasuries, according to people familiar with the matter. The news comes as global debt markets were already selling off amid signs that central banks are starting to step back after years of bond-buying stimulus. Yields on 10-year Treasuries rose for a fifth day, touching the highest since March.

    China holds the world’s largest foreign-exchange reserves, at $3.1 trillion, and regularly assesses its strategy for investing them. It isn’t clear whether the officials’ recommendations have been adopted. The market for U.S. government bonds is becoming less attractive relative to other assets, and trade tensions with the U.S. may provide a reason to slow or stop buying American debt, the thinking of these officials goes, according to the people, who asked not to be named as they aren’t allowed to discuss the matter publicly. China’s State Administration of Foreign Exchange didn’t immediately reply to a fax seeking comment on the matter.


    More, https://www.bloomberg.com/news/artic...ess-attractive
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  3. #2

    Default China weighs slowing or halting Treasuries purchases

    https://www.bloomberg.com/news/artic...ess-attractive

    Senior government officials in Beijing reviewing the nation’s foreign-exchange holdings have recommended slowing or halting purchases of U.S. Treasuries, according to people familiar with the matter. The news comes as global debt markets were already selling off amid signs that central banks are starting to step back after years of bond-buying stimulus. Yields on 10-year Treasuries rose for a fifth day, touching the highest since March.
    more at link

    Petroyuan reported to go live on January 18th. And who will finance the tax cut deficit spending? Things are about to get interesting.
    Last edited by devil21; 01-10-2018 at 07:49 PM.
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  4. #3

    Default

    China Calls Bloomberg Treasury Report "Fake News", Yields Slide
    https://www.zerohedge.com/news/2018-...port-fake-news




    That's right... move along now folks... nuthin to see here

    US 10Y Yields immediately tumbled 2bps, well below the pre-China-headlines levels from this morning...
    Last edited by goldenequity; 01-10-2018 at 11:33 PM.

  5. #4

    Default

    I would never buy US Treasuries .

  6. #5

    Default

    China holds 1.19T.

    1-19

    Gird your loins motherfuckers.
    "Let it not be said that we did nothing." - Ron Paul

    The entire internet is the domain of paid shills and bots. If you don't know this by now....

    Israel, under control of the Crown and, ultimately, the Vatican, own the USA. If you don't know this by now....

    Talk to people about liberty. You won't find it on websites, you won't find it in politicians.

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  7. #6

    Default

    CNBC is calling up all the unknown randoms that look super uncomfy talking about bonds instead of their usual lineup. They all look constipated.
    "Let it not be said that we did nothing." - Ron Paul

    The entire internet is the domain of paid shills and bots. If you don't know this by now....

    Israel, under control of the Crown and, ultimately, the Vatican, own the USA. If you don't know this by now....

    Talk to people about liberty. You won't find it on websites, you won't find it in politicians.

    Visiting the Outer Banks of NC?
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  8. #7

    Default

    https://www.usatoday.com/story/money...ws/1023669001/

    China buys US denominated securities to help keep the value of their currency low relative to the dollar. If they start getting rid of dollars, their currency will soar relative to the dollar making Chinese exports to the US a lot more expensive and hurt their economy. They have slowed purchases for a while now but won't end them altogether or start selling off dollar holdings.

    Chinese regulator says report that buying of U.S. debt might stop is 'fake news'

    China's foreign exchange regulator on Thursday challenged a report it might slow or stop purchases of U.S. Treasury debt due to trade tensions with Washington as "fake news."

    The State Administration of Foreign Exchange, one of the biggest holders of Treasuries, said it is a "responsible investor" for both the reserves and "participating markets."

    Bloomberg, citing unidentified sources, reported Chinese authorities were considering slowing or halting purchases of Treasuries and said they might cite trade tensions as a reason. That prompted a sell-off of U.S. government debt in global markets.

    "The news may quote the wrong information source, or it may be fake news," SAFE said on its website.

    Beijing keeps a big share of its $3.1 trillion in foreign currency reserves in Treasury debt, which is considered safe and easy to trade. The level rises and falls each month as Chinese currency regulators buy and sell dollars to maintain the exchange of Beijing's tightly controlled yuan.

    China owned at least $1.2 trillion of Treasury debt as of October, according to U.S. government data.
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  9. #8

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    US buys goods from China and pays them with $US. China uses those dollars to buy $US denominated securities- mostly US Treasuries. If they decided to trade the $US for their own currency, it would cause the value of the Yuan to soar against the dollar- that would make things we import from China a lot more expensive so will would start buying a lot less. That would be harmful to their economy. So they will continue to invest their $US in $US denominated investments. It is to keep the value of the Yuan low and protect their trade advantage.
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  10. #9

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    Quote Originally Posted by Zippyjuan View Post
    US buys goods from China and pays them with $US. China uses those dollars to buy $US denominated securities- mostly US Treasuries. If they decided to trade the $US for their own currency, it would cause the value of the Yuan to soar against the dollar- that would make things we import from China a lot more expensive so will would start buying a lot less. That would be harmful to their economy. So they will continue to invest their $US in $US denominated investments. It is to keep the value of the Yuan low and protect their trade advantage.

    Source?
    Quote Originally Posted by TheCount View Post
    ...I believe that when the government is capable of doing a thing, it will.
    Quote Originally Posted by Zippyjuan View Post
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