China government says: Report that China is considering reducing or stopping purchases of US treasuries could be based on wrong information
via Reuters quoting a China government source
- China has been diversifying its FX reserves investments
- China's investments in u.s. treasuries is market-driven
You will recall the overnight action where the USD sold off on reports China was slowing its purchases of US treasuries:
- Dollar sells off after comments by Chinese officials to consider halting UST purchases
- Chinese officials said to recommend slowing or halting purchases of US Treasuries
Well, China denying this now.
If you are a noob to FX and markets in general this sort of flow of wrong information is not unusual. Info --> market moves --> new information --> new moves.
Some times the news and denial/correction comes out within seconds or minuts, sometimes hours (as in this example).
Stay nimble gang!
And we are getting a bid back in the USD: