- Someone is lying. Did the Chinese just used the MSM to deliver a warning? Or did Bloomberg made it all up?
- China Calls Bloomberg Treasury Report “Fake News”, Yields Slide
by Tyler Durden, https://www.zerohedge.com/
Less than 24 hours after Bloomberg headlines rang around the world proclaiming China would “slow purchases” of US Treasuries, China’s State Administration of Foreign Exchange, SAFE, pushes back on the report, saying it is “fake news.”
As Blooomberg reports, SAFE says its investment in Treasuries is based on market conditions and its needs, and adds that it always diversifies investment of FX reverses.
Additionally, SAFE says the earlier report may have quoted a wrong source. Reuters headlines provide a little more color:
* CHINA’S FX RESERVES MANAGEMENT DEPARTMENTS ARE RESPONSIBLE INVESTORS -FX REGUATOR: RTRS
* CHINA HAS BEEN DIVERSIFYING ITS FX RESERVES INVESTMENTS: RTRS
* CHINA FX REGULATOR SAYS INVESTMENTS IN U.S. TREASURIES MARKET DRIVEN. CHINA HAS BEEN DIVERSIFYING ITS FX RESERVES INVESTMENTS: RTRS
* REPORT ON CHINA CONSIDERING REDUCING OR STOPPING PURCHASES OF U.S. TREASURIES COULD BE BASED ON WRONG INFORMATION -CHINA GOVT SOURCE: RTRS
Following is a translation of a statement from China’s State Administration of Foreign Exchange in response to a report that said China may slow or halt purchases of U.S. treasuries.