China and U.S. Treasuries…What was this morning’s news all about?

This note was first published to my email subscribers on 1/10/2018.

Early this morning, at 4:26 AM CST to be exact, Bloomberg broke a story that senior officials in the Chinese government are considering reducing or halting purchases of U.S. Treasury Bonds. This caused stock futures to drop, USD to drop, and bond yields to spike (i.e. bond prices to fall) before the open.

So what is this all about and why is it such a big deal? Continue reading “China and U.S. Treasuries…What was this morning’s news all about?”