As the US Treasury market was consolidating yesterday's 7.5 basis point jump in 10-year yields when Bloomberg's headline hit. The claim was that Chinese officials are "wary of Treasuries". Yields rose quickly to test 2.60% and the dollar moved lower. It is difficult to determine the significance of the claim as the Bloomberg story does not quote anyone. The "people familiar with the matter" who are cited are not identified, but claims that other officials who are reviewing the central bank's reserves, have recommended "slowing or halting" purchases of US Treasuries. The report clearly spooked the market, but it is ... (full story)