Home World A Sharp Decline of the Dollar After News that China Could Stop Purchasing US Government Bonds

A Sharp Decline of the Dollar After News that China Could Stop Purchasing US Government Bonds

World 2018/01/15 at 3:10 AM
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The US dollar is under strong sales pressure after the Bloomberg agency said the Chinese authorities would reduce or even stop buying US Treasuries.

Bloomberg quoted unnamed sources close to the topic that official Chinese authorities overseeing the country’s foreign exchange reserves have recommended a delay or even a suspension of US Treasury purchases.



In their view, US government bonds have become less attractive than other financial assets.

China‘s existing trade strain with the US may also be a reason for slowing or stopping US debt purchases, they say.

Though unsubstantiated, the news provokes aggressive dollar sales on foreign exchange markets, although at the same time yields of 10-year US bonds jumped to a ten-month high of 2.588 percent.

novinite.com

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