Bloomberg is reporting that China is considering slowing or halting purchases of US treasuries. This caused a mini massacre in the US bond market. At least every few years we see this headline going back a decade. What are the results? See for yourself:
As some in politics would say ” A big fat nothing burger”. This is why I do not take these warning serious. Until I see action, I will not take these china officials serious. Why does China keep saying this but never act? The US bond market is the safest place to be right now. Safer than China. It is the most attractive bond market when compared to its counterparts in the western world.
One day there will be a massive explosion in the US bond market.
The key is this: One day.
I do not see this occurring in the near future. During turmoil investors flood into the US dollar and US bond market. They believe it is a safe heaven from financial chaos. They are wrong. Until the time comes this thinking changes it will go on like this. I do not see any evidence that this is changing.