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Caution Remains as China Denies Treasuries Rumour
Stocks, Treasuries and USD Recover But Sentiment Remains Fragile US equity markets are currently eyeing a flat open on Thursday, with caution clearly evident as investors recover from Wednesday’s brief sell-off and await the start of earnings season on Friday. Markets may also be experiencing something of a hangover from Wednesday, when US stocks, Treasuries and the dollar all sold off on reports that China is considering cutting purchases of Treasuries. China is a huge buyer of US debt and so, should the reports turn out to be correct, one would expect yields on US debt to rise, which is why we saw such a knee ... (full story)