By Chuck Butler
Yesterday, I told you about what I believe is going on in the shadows of US Treasury auctions… And today, I’ll tell you one of the reasons there are Chinese Fire Drills going on every time there’s an auction… Did you know that China has now been a net seller of some $45 billion of US Treasuries over the last five months?
He went on to write… “Much of China’s selling has been in short-dated Treasury bills, but China has not indicated that instead it will buy longer maturity US government notes and bonds. That is the bad news for the US dollar and the Treasury market.”
I wonder if people just didn’t take the report a couple of months ago from the Chinese think tank that China may scale back purchases of US debt on concern that the dollar will decline.