Reports say China may slow US Treasury purchases, trade tensions cited

Reports say China may slow US Treasury purchases, trade tensions cited

Balancing a retirement and college savings can be overwhelming.

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 report suggests that China feels USA debt is becoming less attractive when compared to other types of investments.

They reportedly also referenced trade tensions with Washington as a reason to lower the pace of debt purchases. "A significant change in policy could put considerable upside pressure on USA yields". The Fed is also expected to raise rates three times this year.

The report fueled concern that China might use its $1.2 trillion Treasury stockpile - the largest of any foreign country - as leverage should U.S. President Donald Trump act on his administration's increasingly confrontational trade rhetoric. Japan was second with US bond holdings worth $1.09 trillion.

Any reduction in Chinese purchases would come just as the USA prepares to boost its supply of debt.

The yield on 10-year Treasuries was four basis points higher at 2.59 per cent as of 12:16 p.m.in London, reversing a decline to 2.54 per cent earlier Wednesday.

But Erlam says it is too "early to speculate" on the likelihood that China will "suddenly" reduce its holdings.

Treasury holdings
Reports say China may slow US Treasury purchases, trade tensions cited

The U.S. 10-year yield rose to 2.56 percent on Wednesday, hitting levels not seen since last March. It finished unchanged at 2.55%. Such measures - already used by Beijing against countries like South Korea - could include informal regulatory actions that deny market access to USA firms and goods, they said.

And China could get even tougher.

"The dollar was already notably weak ahead of today, despite the fact that US data remained strong and yields continued to rise", said Boris Schlossberg, managing director of FX strategy at BK Asset Management in NY.

"This happens every time rates go up", Paulsen explains.

A possible slow-down or halt to China purchasing US Treasury yields could have significant repercussions.

The key question is whether it is in China's best interest to sell U.S. Treasuries as an opening salvo in what could become a trade war, analysts say.

Supreme Court modifies 2016 order, says National Anthem not mandatory in theatres
While few theatre owners say they will discontinue playing national anthem, others say they will play national song Vande Mataram. The bench had further stated that an Indian doesn't need to wear his patriotism on his sleeves.

Related News:



Most liked

Ivy League student found dead in California park where he went missing
Bernstein was reported missing when he didn't return home after he went walking in the park to meet another person on January 2. On Wednesday, Gideon Bernstein thanked community members through tears for their support in the efforts to find his son.

Manchester United hit back at Sevilla as ticket row continues
The move comes after extensive talks between both clubs failed to see them reach a compromise or bring ticket prices down. The Spanish club claims United have not offered their fans enough tickets for the second leg in March.

Black Widow standalone movie gets a scriptwriter
Schaeffer is writing the script for Nasty Women , a female-focused spin on Dirty Rotten Scoundrels that will also star Hathaway. Schaeffer stepped into the feature film industry with her 2009 pic TiMER , which she wrote and directed.

Huma Abedin, Anthony Weiner to Settle Divorce Out of Court
Abedin filed for divorce in May, hours after Weiner pleaded guilty to sexting with a minor. Clinton has called Comey's intervention "the determining factor" in her defeat.

Israel ministers call for greater settlement construction after settler killed
Several revenge attacks by settlers against Palestinians also took place, as Palestinian property and cars were pelted with rocks.

Weekend winter storm getting closer
As you can see on both models below, it's not a question of whether or not there WILL be snow, but WHERE it will fall. At the moment, the higher probability of an inch of snow or more is in the mountains - especially on the KY/VA line.

SpaceX defends rocket performance after loss of USA spy satellite
The company doesn't anticipate any impact on its upcoming launch schedule, including a Falcon 9 mission in three weeks. Army Lieutenant Colonel Jamie Davis, the Pentagon spokesman for space policy, referred questions to SpaceX.

Sony Xperia XA2 vs XA2 Ultra: What's the difference?
The Sony Xperia XA2 will be available soon in silver, black, blue and pink and in dual-SIM and single-SIM variants. And then there's the Xperia L2 - the unassuming entry-level Xperia, that grew out of the now defunct E-series.

Where To Watch 'Big Little Lies,' 'Handmaid's Tale' And More — Golden Globes
Nicole Kidman has 4 children and this is the Second Time she has made reference at a win to her two daughters", a viewer tweeted . The veteran concluded her speech with the following message of gratitude to her co-stars, colleagues and loved ones 'Bless you.

Facebook pulls the plug on its virtual assistant 'M'
Facebook's virtual assistant was pretty unique compared to the rest of the digital assistants on the market. AdNews received access to M for a few weeks past year and found its restaurant suggestions helpful.

Declared dead, man comes back to life on autopsy table
Telecinco report that it is believed that a case of catalepsy is responsible for the man almost being killed by the coroner. Despite signs to revive him, he was declared dead. "Quite the opposite", reported El Espanol .

INEC releases Timetabe for 2019 General Election
The INEC boss urged all the political parties and all and sundry "to eschew bitterness and conduct their activities with decorum". He said commencement of campaign by political parties would be from November 18 for presidential and National Assembly elections.

Price named sole Hab at NHL All-Star game
This will be Seguin's fifth appearance in the game, while Klingberg will be making his first appearance. Kopitar has 17 goals (44 points) in 2017-18, and leads the teams in points and assists (27).

Seahawks fire former Badger QB Bevell, Cable
Head coach Pete Carroll tried to take the heat for the call, but much of the blame was still put on Bevell's shoulders. And we hear from players and coaches leading up to the start of our coverage. "Truth is (Bevell) is not the problem".

CES 2018: LG's Google Assistant Ready Smart Display Revealed
B&O also announced AirPlay 2 support is coming to 10 devices including the Beoplay M3 , M5 and A9 mk2 and Beosound range. LG made a decision to use Meridian Audio and add an 8-inch touchscreen display and a front-facing camera on this device.