China 10 Year Yield getting ready to take a run at the 1.60% low.

Rates going to the zero bound in China not on Wall St Bingo card.

What if China needs to sell UST because it’s running out of USD to keep the Peg to USD…

I think Bessent knows a thing or two on currency Pegs

Reply to this note

Please Login to reply.

Discussion

Ok selling US treasuries on the open market will blow out the on the run - off the run spread. It will also put massive pressure to raise yield increasing 10 year rates.

Basically strengthening the dollar.

So will this force Powell’s hand to lower overnight rates?