Government bonds likely to benefit less from ‘safe haven’ inflows going forward due to worries over valuation and volatility, says DNB Markets
USD/CNY seen to decline towards 7.0 as US-China Washington talks likely to achieve a breakthrough, says Scotiabank
Australian bonds mixed ahead of August employment report amid geopolitical tensions in the Middle East
Australian bonds slump as positive U.S. data aid markets, easing trade tensions provide modest support
EM Asian currencies likely to rally further during rest of September, remain susceptible to Fed’s monetary policy stance: Scotiabank
JGBs close higher despite better-than-expected improvement in August trade balance; BoJ meeting eyed
FxWirePro: Why Fed not worried about China selling U.S. treasuries to counter trade war?
Speaking at Foreign Correspondents’ Club (FCC), St. Louis Fed President James Bullard talking on Sino-American trade negotiations suggested that China, which is the biggest foreign holder of U.S. Treasuries, it chooses to offload large chunk of Treasuries as part of its trade war with the United States, is not as big a threat to the United States than portrayed.
China’s immense reserve of U.S. treasury bills have always been considered as a formidable weapon which can be engaged and used in these tough times, so, why the Federal Reserve is not worried?