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USD crashes on report that China will halt buying US bonds – updates on 5 pairs

According to a report by Bloomberg, China is considering a halt or at least a slowdown in buying US treasuries. The report  cites people familiar with the matter, saying that US  government bonds are becoming less attractive in comparison with other assets. Perhaps worse off, they also cite trade tensions with the US as a reason for the decision. Is this the start of a trade war?  

Apart from the directly-linked sell-off in Treasuries and the consequent jump in yields to around 2.58%, the US dollar is falling across the board.

US  bond yields were already on the rise before the news came out from China. Some expect inflation to finally pick up with GDP and employment growth. Bill Gross and Jeffrey Gundlach, two “bond kings” have commented on rising yields, analyzing if the mutli-decade bond market has come to an end.

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Here is how it looks on USD/JPY:

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.