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Thursday, January 11, 2018
Chinese officials proposed ease or suspend US debt holdings
ANBOUND

On January 10 Beijing time, the U.S. dollar suddenly violently sold-off and rapid declined; the dollar index fell to the lowest 92, short-term plunge over 40 points; 10-year U.S. bond yields rose short-term. The U.S. dollar and the U.S. debt market moved differently, allegedly because some Chinese top economic officials are evaluating investment in the U.S. debt. Sources said that Chinese officials think the attractiveness of the U.S. government bonds has been somewhat reduced. Coupled with the trade frictions between China and the United States, some officials have proposed to ease or suspend the U.S. debt holdings.

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