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Is Fear of China Selling Treasurys Overdone?
China is stirring up the U.S. Treasury market’s pot again. Early last week, sales from China were blamed by traders on why the rally in long-term Treasury debt was muted despite a sharp plunge in global stocks and crude oil prices. Tuesday, the movements in bond market prices again raised speculation that China was in the market selling bonds again to keep in check the bond market’s price strength. While the sales help explain why long-term U.S. bond yields have failed to drop sharply over the past few weeks, analysts and traders don’t expect yields to rise significantly. The bond market has attracted buyers to ... (full story)