Gawd, I hate the press. Misinformation is peddled an a breathtaking rate. Case in point:
FT: Trades reveal China shift from dollar
Read the article and what do we find?
Beijing, however, routes purchases through custodian banks and overseas financial centres, such as London and Hong Kong, to disguise its offshore dealings.
And
Mr Green said it was possible that China had found a way to disguise its purchases of US government debt – or could be buying riskier US assets that don’t show up in monthly data.
What did the US report yesterday? A 49% jump in foreign direct investment. The kind of risky assets that don’t show up in monthly data.
In other words, the article proves that the headline is completely at odds with reality. With US yields hovering below 3%, my guess is that China is buying more Treasuries as ever or it just doesn’t matter what they do anymore (which I would prefer…)
Drives me bonkers…
