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.

Celeno delivers 802.11ax Wi-Fi solution
But the chips also have to make their way down to smaller devices, like laptops and phones , which will take longer. Chipsets upgraded to 802.11ax will also offer backward compatibility with existing Wi-Fi technologies.

Related News:

  • SpaceX defends rocket performance after loss of USA  spy satellite

    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.
    Singapore Airlines says options open on Air India disinvestment

    Singapore Airlines says options open on Air India disinvestment

    Overseas investment policy has also been liberalised in case of power exchanges, an online platform where electricity is traded. He said in a statement that the CAIT would soon declare a nationwide strategy to oppose the "brutal move" by the government.
    Where To Watch 'Big Little Lies,' 'Handmaid's Tale' And More — Golden Globes

    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.
  • Lucas Moura edging closer to Man United switch

    Lucas Moura edging closer to Man United switch

    United need a winger, and Moura's ability to dribble and cross the ball would be appreciated at Old Trafford. He has come five years late, but he could make up for lost time by getting up and running right away.
    New Toyota-Mazda factory to be built in Alabama

    New Toyota-Mazda factory to be built in Alabama

    Their decision to locate this new facility in Huntsville is a testament to the talented workforce in our state. The person didn't want to be identified because the decision hasn't been made public.
    Seahawks fire former Badger QB Bevell, Cable

    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".
  • Black Widow standalone movie gets a scriptwriter

    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.
    Weekend winter storm getting closer

    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.
    Supreme Court modifies 2016 order, says National Anthem not mandatory in theatres

    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.
  • First Assassin's Creed Origins Expansion Comes Out Later This Month

    First Assassin's Creed Origins Expansion Comes Out Later This Month

    Once that's over, players will be able to take on the devious Sobek from January 23 to January 30. The update will also allow Bayek to sell outfits at Weaver shops, and add one free quest.
    INEC releases Timetabe for 2019 General Election

    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.
    OJ Simpson shuts down those reports that he's Khloe Kardashian's real dad

    OJ Simpson shuts down those reports that he's Khloe Kardashian's real dad

    In 2012 she told " Good Morning America ", "It just gets weirder and weirder: I have never heard such crap in my life". Simpson was granted parole in July 2017, and he was officially released in October 2017.


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.

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.

Wendy William Believes Travis Scott Already Dumped Kylie Jenner: Find Out Why
In this photo, the TV host attended the 50th anniversary celebration of Wilhelmina on November 14, 2017 in New York City. Wendy put her controversial theory forward to her audience on her talk show on Wednesday.

Royce Will Not Seek Reelection in 2018
Eliot Engel, now the foreign affairs ranking Democrat, is expected to take the gavel. If Democrats were to win control of the House, Rep.

James Damore sues Google for firing him over his gender memo
Not only was Damore fired after his memo went public, but as he puts it, others who spoke out against him were rewarded. He claimed that employees with conservative beliefs "have to stay in the closet" for fear of retaliation.

FERC rejects 'multi-billion-dollar bailout' of coal and nuclear plants
A spokesman for Murray Energy declined to comment Monday. "They voted 5-0 to address resiliency". However, the Regulatory Commission said that Perry's arguments were unfounded.

Peter Beardsley Leaves Newcastle as Investigation Opens Over Bullying and Racism Claims
It's understood that no decision was made and further evidence will be heard from the complainants later this week. In 2003, he and Academy director Kenny Wharton were cleared of bullying by a Premier League inquiry.

Disney star details shock childhood sex abuse
The former Disney stare posted a heartbreaking message on Instagram , revealing that the abuse was one of her earliest memories. Thorne also spoke out on Twitter , writing, "I never knew what was right or wrong growing up".

Is Akash Dadlani out of Bigg Boss?
When Vikas starts waxing, Shilpa and the others start complaining that it doesn't look mean but Vikas eventually wins the task. While Hina and Shilpa are two of the most popular contestants, Vikas is also a tough contender, and has a good fan base.

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 .

HP recalls Notebook computer and mobile workstations batteries
This is not the first time that HP has been forced to issue a laptop recall over safety concerns surrounding their batteries. Until receiving a replacement, customers will simply need to connect their laptop to a power adaptor to use it.

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).

7.6-magnitude natural disaster strikes off the coast of Honduras
"Amazing trip to #Cancun ended last night with our condo shaking like insane as a result of an quake off the coast of Honduras". The reports that the 7.6 magnitude makes this one of the most powerful earthquakes to hit the Caribbean in modern day history.

Olympia Ohanian Is Already Breaking Records As Vogue's Youngest Cover Star
No one talks about the low moments-the pressure you feel, the incredible letdown every time you hear the baby cry", she said . Williams told the magazine that the first couple of months of motherhood have tested her in ways she never imagined.