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  • China Officials Said To Recommend Slowing Or Halting Treasury Buying

  •  Guest
  • | IP XXX.XXX.4.66
Goodbye usd
Anyone can explain this to impact market? this make eur/usd go up currently?
Looks like China is ready to abandon the dollar.
fake...
Quoting XuMar
Anyone can explain this to impact market? this make eur/usd go up currently?
well...this of course hurts the USD. considering they have to buy the dollar in order to purchase the treasury. If they are even sellers, then this would drive the USD down even more. Now, if they stop buying the dollar, the second most liquid currency would be the EUR which is probably why its getting a bit boost
Quoting greendiesel
fake...
i cant find other news on this either...however the yields are still up on the day.
pump and dump
The impact is as always, "Go with the flow"
Quoting kingleeny
{quote} i cant find other news on this either...however the yields are still up on the day.
Right yields are up so you would expect dollar strength but this is something bigger.
Quoting kingleeny
{quote} i cant find other news on this either...however the yields are still up on the day.
US yields will climb as there will be no buyers.
My eur usd from all floating be profit LOL
  •  Guest
  • | IP XX.XXX.193.79
Big problem for dollar!
Wonder if Chinese want to burst the bubble on the US bonds. Yields should be way higher. Otherwise, bonds are too expensive.
it all means $$$$$$$$$$$$$$$$$ if we get it right

way out in front $$$$$$$$$$$
Quoting XuMar
My eur usd from all floating be profit LOL
careful cowboy too hard too fast
Traditionally, the currency for trading oil is USD. That is a major reason that the USD is in demand worldwide. As the USA withdraws from the world stage, China sees an opportunity to take its place. Recently China has set up a futures market for oil traded in gold-backed yuan. They are trying to unseat the USD as the petro-currency and replace it with yuan. That opens the door to widespread acceptance of yuan for all global trade.

China has been a major buyer of Treasuries. If that demand disappears, yields will jump (bond prices and yields move in opposite directions to each other). It would cause US interest rates to take off (and the Fed could do little to prevent it). The stock market has been free-riding on low interest rates. If rates jump, watch for the stock market to implode.
china officials told Treasuries are less attractive,but mkt missmatch the statement china stop buying the US $,if the statement clearout,it shouldbe Reverse .
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gold spiked. Vix going up. SNP futures dropping. The fear is real.
Quoting XuMar
Anyone can explain this to impact market? this make eur/usd go up currently?
This will cause a tightening in the markets as liquidity is taken out in addition to the negative effect on the USD.
Crosses will all go up against the USD
Equities and bonds will go down and Gold Up.

Nicely timed for the US30Y bond auction tomorrow. They can now buy up some cheap bonds.
Quoting kingleeny
{quote} well...this of course hurts the USD. considering they have to buy the dollar in order to purchase the treasury. If they are even sellers, then this would drive the USD down even more. Now, if they stop buying the dollar, the second most liquid currency would be the EUR which is probably why its getting a bit boost

They have the dollars to do it,

I still cannot get over the dollars they were buying way back when the U/S couldn't print it fast enough
The US fiscal deficit is set to move higher in the next few years due to Trump's tax cuts so the 10 yr yield ought to be at least 5% should China stop recycling their trade surplus into US treasuries.
Quoting XuMar
Anyone can explain this to impact market? this make eur/usd go up currently?
USD/JPY Went down which is almost certainly a strong up on EU
Quoting Dingoman-two
{quote} They have the dollars to do it, I still cannot get over the dollars they were buying way back when the U/S couldn't print it fast enough
The fed was there as the buyer of last resort back then.
Quoting Spec_And
{quote} The fed was there as the buyer of last resort back then.

That's right, i forgot that, they were buying out of Brazil if i remember right
Equities dont seem to have reacted much thus far.
Oil as I understand is showing "risk on" and is near its highs.
Would gold going off be a "risk off" signal?
  • Post #26
  • Quote
  • Edited at 7:15am Jan 10, 2018 6:21am | Edited at 7:15am
here: https://www.forexfactory.com/news.ph...9#post10629436
I said it: The US dollar goes to its own end. Next year, will is the beginning of his freefall.
Quoting Trainman
Traditionally, the currency for trading oil is USD. That is a major reason that the USD is in demand worldwide. As the USA withdraws from the world stage, China sees an opportunity to take its place. Recently China has set up a futures market for oil traded in gold-backed yuan. They are trying to unseat the USD as the petro-currency and replace it with yuan. That opens the door to widespread acceptance of yuan for all global trade. China has been a major buyer of Treasuries. If that demand disappears, yields will jump (bond prices and yields move...
Yep China wants to promote use of the Yuan. The one belt one road initiative already require countries to borrow at least 30% of the investment in Yuan, China is ready to move onto the world stage as US withdraws into its shell with Trump.
Quote
Yep China wants to promote use of the Yuan. The one belt one road initiative already require countries to borrow at least 30% of the investment in Yuan, China is ready to move ..

What do member countries get in return for adhering to such (borrowing) strictures?
RANSquark a while ago said they were looking for an official comment. It sounded like it was just rumor when it was first announced. So we sell (USD) on the rumor in this case... right?
Sold Dow Jones. Calling the top. Good morning.
fake news short eur long usd
Quoting slouw
{quote} What do member countries get in return for adhering to such (borrowing) strictures?
The privilege to become a chinese colony.
OMG! my NZDUSD floating negative...I sell at 0.7195 and now price at 0.7217....what do you think guys? i need to stop it manually? thanks
Quoting jrdFX
OMG! my NZDUSD floating negative...I sell at 0.7195 and now price at 0.7217....what do you think guys? i need to stop it manually? thanks
if you plan not work anymore, you can cut loss
Quoting slouw
{quote} What do member countries get in return for adhering to such (borrowing) strictures?
Most of these countries are poor and they need the money to improve their infrastructure, beggars can't be choosers.
  • Post #36
  • Quote
  • Edited at 7:14am Jan 10, 2018 6:58am | Edited at 7:14am
if China were to stop buying USA Treasury's, which is how USA funds its debt. The USA national debt would be more of a problem with less country's funding it. Interest rates would need to rise, to get more country's to buy USA debt. It would be Negative for stocks as higher interest rates hurt companies. Housing would go down as interest rates on loans go up. This is all gonna happen in next 20 years or so as China takes over as the major reserve currency. But they aren't even close to being ready right now. The systems aren't in place yet for it to happen overnight. Its pretty clear the USD is already having issues. USA debt doubled last 8 years.. There were major liquidity issues in 2008. Its just a matter of time.
China is setting itself up to replace the US as the world's Reserve Currency so that THEY will be able to print money and the US can't. When that happens, the US economy will tank and China can "foreclose" on the US!

Certainly glad I now live in Canada ... best banking system in the world!
China can't "foreclose". USA would Print money to pay it off. ==== Canada is being bought Up by china. And Canada has huge housing bubble too. Nothing that great about canada.
I think china is in trouble, they are expecting trillions of dollars to leave China's banks to come back to US. Due to the trump tax reform, and manufacturing might be next. In the long run china get hurt and USA get stronger!!
Although they think like this, i think te China's economy is a kind of big problem to Trump.
Now that's a game changer. I think we're in for a bumpy roller coaster ride in USD, so get your seatbelts ready.

And perhaps read interviews with Yusko, Snider and Gromen on Macro Voices.
Quoting bloodpoodle
if China were to stop buying USA Treasury's, which is how USA funds its debt. The USA national debt would be more of a problem with less country's funding it. Interest rates would need to rise, to get more country's to buy USA debt. It would be Negative for stocks as higher interest rates hurt companies. Housing would go down as interest rates on loans go up. This is all gonna happen in next 20 years or so as China takes over as the major reserve currency. But they aren't even close to being ready right now. The systems aren't in place yet for it...
Excellent Summary bloodpoodle, Nice to see fundamentals explained so well. Thanks.
  •  Guest
  • | IP XX.XXX.25.82
sorry guys, that was all down to dow futures coming down to pick up my huge long order. seems some people still believe chinese news. it was probably some rumour started on Tencent (700HK). I am already out with a 5 point profit and got order in long dow futures a bit further down. a break of 25250 cash dow should trigger some more stops
Quoting TarryFaster
China is setting itself up to replace the US as the world's Reserve Currency so that THEY will be able to print money and the US can't. When that happens, the US economy will tank and China can "foreclose" on the US! Certainly glad I now live in Canada ... best banking system in the world!
Yeah, good luck with that in the grand solar minimum.
  •  Guest
  • | IP XXX.XXX.206.49
The whole global monetary system is collapsing and one day china will be the new financial super power but not for quite sometime.
Any country can just print money. They don't need to be the reserve. That's howmany countries started anyhow. They just printed what they needed till the ball got rolling. It's how the US did it.
Quoting XuMar
Anyone can explain this to impact market? this make eur/usd go up currently?

The EUR is a beneficiary of any slowing in foreign central bank demand for US Treasuries, but below you'll find your answers to China's 101 trading lessons for Trump by Scotia Bank.
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  • | IP XX.XXX.58.220
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  • Posted: Jan 10, 2018 5:28am
  • Submitted by:
     Newsstand
    Category: High Impact Breaking News
    Comments: 46  /  Views: 19,737