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China May Halt Purchases of U.S. Treasuries...

This is extremely important news.

The bond market is much, much larger than the stock market.

Bond investors (myself included) will be very concerned that China may no longer be going to backstop prices of US Treasury obligations.

All bonds in the world (including the German Bund and Japanese Government Bonds) are priced off the stability of US Treasury obligations, which in turn depend upon China's heretofore insatiable demand for the liquidity and stability of US debt.

If bond prices start to move too quickly, China will hopefully reverse this announcement - or soften it somehow, in order to preserve their own reserve account balance sheet.

I am nervous about this and all things going on in the bond markets - and if I am nervous about it, then I guarantee a lot of other bond investors are likewise nervous - or at least actively watching for what happens next.

Bill Gross called the end of the 25-year bond bull market yesterday.

There is a convergence of factors occurring around the world having to do with fixed income investments.

Even Japanese government debt yields increased today. That is big, big news by itself.
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