Here’s what is interesting to me; China has purchased $1.5 Trillion of US debt, most all at higher interest rates than now. I hear they’ve been selling, which under normal circumstances would put upward pressure on mid and long term US interest rates and the dollar. They are selling at a premium since their holding better paying bonds than what we are currently selling, and I thin they see it as a good time to do so. BUT, due to global fear and lack of a debt alternative in the global markets US rates are going down. It helps that, due to the sequester, we are only issuing half the debt we did a few years ago. Bottom line? IMHO the Fed sees this as well, will increase short term rates and things may start to normalize. The ChiComs will have a bit less reason to sell, people will pay attention to the slightly positive economic news, and the slowest weakest recovery since the Great Depression will slog on.
Sorry; “their” = “they’re” Being my own spellcheck after the fact!!!!