[oblomov]

The bond vigilantes are back, and this time, they speak Mandarin!

[Nathan Zachary]

""China is implying to the US, more or less, that it should adopt a more pragmatic and responsible attitude to maintain the stability of the dollar," He Maochun, a political scientist at Tsinghua University, told the Global Times."

What is this guy, NUTS? That's not what China is implying at all! They are saying, shut up Obama, or we will tank the US dollar- like this (sell sell sell) So unless you want to maintain the stability of the USD, shut up and do what we say.

[datura]

Chuck Fina.

[Nathan Zachary]

if you want to... not unless.

[razorback-bert]

Did they reduce their holdings by $135 billion, just asking?

[Cicero]

I’m not sure that that was the most sensible thing to do. The long term bond price was breaking through resistance earlier in the day, following a MACD crossover, and looked as if it might be through with its recent correction, when this news hit.

The white candle quickly changed into a black one as bond prices dropped on the news. Is that what China wants? To sabotage the price rise of the bonds they are holding just as they appear to be breaking out?

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID530404&cmd=show[s61320502]&disp=P

[PGalt]

Interesting post & thread. Thanks to all.

[ponder life]

I can find no better example than this on what I've been trying to say all along, that China is damned if they do and damned if they don't. When they were buying US treasuries and their holdings were growing, people here vilified them. Now, they are slowly (and I stress slowly) reducing their treasury holdings, and yet again, they are vilified.

......amazing......absolutely amazing.....