The report also notes that Chinese officials think US debt is becoming less attractive compared to other assets, adding that trade tensions between the two countries could provide a reason to slow down or halt the purchases.
The US dollar is under strong sales pressure after the Bloomberg agency said the Chinese authorities would reduce or even stop buying US Treasuries, said the BNR.
Bloomberg said the Chinese officials did not specify why trade tensions would cause a cutback in Treasuries purchases, but it said foreign holdings of US securities have sometimes been a geopolitical football in the past. They also cited trade tensions with the United States as a reason to slow Treasury purchases, the report said.
A top Treasury official signaled confidence in the USA government debt market, which at $14.5 trillion is the world's largest.
The yield on 10-year U.S. Treasuries hit a 10-month high of 2.588 percent in European trade and was up 4 basis points on the day.
Zuma's ouster not on NEC's agenda ... yet
Former public protector Thuli Madonsela also pointed out that the commission of inquiry may only focus on state capture allegedly committed by the Zuma and Gupta families, reported News24.
WWE SmackDown Live results: (1/09/2018)
Chad Gable and Shelton Benjamin came out to "demand justice" for the way their SmackDown Tag Team Title match went down last week. Bryan says Shane is puzzled eh? Styles had a sit down with Renee Young to discuss the events of last week's show.
James Damore Is Fighting the Good Fight for White Men in Tech
Damore's lawsuit in court", a Google spokesperson told Reuters. "The case was filed in California Superior Court", Laura reports. It alleged that Google uses illegal hiring quotas to achieve a particular percentage of women and minority ethnic employees.
High profile bond investor Bill Gross of Janus Henderson Group also said on Twitter on Tuesday that bonds are in a bear market.
Any reduction in Chinese purchases would come just as the US prepares to boost its supply of debt.
A taper in Chinese purchases would come as the Federal Reserve unwinds the massive balance sheet it amassed following the financial crisis. "For years they have been bothered by the fact that they are so heavily invested in one particular class of USA bonds, so it's just a question of time before they would try to diversify".
However, with China holding approximately $3 trillion in foreign exchange reserves, it was not clear what other markets would be large enough to invest in should China reduce its participation in the Treasury market, raising some speculation that the news may constitute some political bargaining. China's central bank amasses dollars when the country turns a large trade surplus with countries such as the USA and when Chinese authorities manipulate their currency by selling it and buying dollars.
Markets are also braced for a deluge of debt supply this week.