- The rise in 10yr bond yield to above 2% is worrisome.
- China Is Suddenly Dumping Treasuries
by Tyler Durden, www.zerohedge.com
While we admit that “suddenly” is not exactly the right word to describe China’s selling of US Treasurys, which has been steadily liquidating its UST reserves over the past two years, something changed today, when in a violent move starting around the time of the Trump election was guaranteed after midnight, the offshore Yuan, the CNH, has been a one way street of non-stop selling, indicative however, of much more than just the relative strength of the dollar.
In fact, as the chart below shows, the selling in the Yuan appears to be closely correlated to today’s unprecedented liquidation in US Treasurys…