Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

[Purveyor]

By Min Zeng And
Lingling Wei
Oct. 7, 2015 1:34 a.m. ET



Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.

Sales by China, Russia, Brazil and Taiwan are the latest sign of an emerging-markets slowdown that is threatening to spill over into the U.S. economy. Previously, all four were large purchasers of U.S. debt.

Few analysts expect much higher yields in the Treasury market as a result. Foreign private purchases of U.S. debt have increased amid pessimism about the world economic outlook. U.S. firms and financial institutions continue to buy Treasurys, as do some foreign central banks.

Still, many investors say the reversal in central-bank Treasury purchases stands to increase price swings. It could also pave the way for higher yields when the global economy is on firmer footing, they say.

more...

http://www.wsj.com/articles/once-the-biggest-buyer-china-starts-dumping-u-s-government-debt-1444196065

[OnlinePoker]

1. Paywalled article. n/t

[DemReadingDU]

2. Copy the title into google, then it can be accessed free

[OnlinePoker]

3. Odd...I tried that earlier and it wouldn't work.

It did this time, though...thanks.

[Ghost Dog]

4. Not "starts": continues...

(Seems most headline editors need to be sacked, unless dumbing-down is of course the agenda, even at wsj).

China has been dumping US treasuries since the spring, as the graph shows.