China starts to dump U.S. treasuries
Its official China has started to reduce its U.S. treasury holdings to help support the Chinese Yuan. China sold the treasuries directly into the market, as well as through identities in Switzerland and Belgium. According to a source close to the matter the Chinese government communicated with the U.S. Treasury Department prior to the sales.
Data released from the U.S. treasury department indicates that China still owns $1.48 trillion in U.S. debt securities.
If sales continue yields on U.S. Treasuries will come under considerable upward pressure and put the Fed in a difficult situation. The U.S. government is swimming in ...