The US released foreign capital flows numbers for May and the glaring data point was China where Treasury holdings fell to $1.276 trillion compared to $1.297 trillion a month earlier.
As a percentage of holdings, the decline is tiny but it’s still nearly $20 billion lower and if China is selling bonds, it could get ugly very quickly in the debt markets, . Overall long-term investment flows into the US (TIC flows) fell a net $66.9 billion compared to $17.5 billion expected.
After the data, the US 10-year yield broke out above the July highs.
US 10 year yields
Today could be a bloodbath in the stock market and bond market.