Thursday, August 15, 2013

Could China be making a move to put pressure on the dollar through interest rates?

Interest rates beginning to rise as China and Japan dump Treasuries

From the beginning of May through to the end of June, interest rates soared 100 basis points to their highest level in two years.  The catalyst for this appears to be coming from Asia, as China and Japan sold off $40 billion worth of their reserves at the exact same time interest rates shot up.
In fact, on Aug. 15, the 10-year Treasury bond yield rose to over 2.75, which is the highest it has been in two years.


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