Bill Gross sees 'decaffeinated bear market' on the way for bonds

USD/JPY: Bank of Japan's Yield Curve Control Could Weigh

USD/JPY: Bank of Japan's Yield Curve Control Could Weigh

China denied on Thursday a report that it may slow or cease its purchases of US Treasury bonds, calling it a possible case of "fake news" after the dollar tumbled following the story. China has total reserves of just over $3 trillion.

But the Eurasia Group analysts said that China had more targeted tools to pressure the US and retaliate against trade measures.

Yields rise when bond prices fall.

The report, published by Bloomberg on Wednesday, cited unnamed sources as saying that government officials reviewing China's foreign exchange holdings had recommended slowing or even halting the accumulation of US Treasuries.

Analysts do not believe that the country, which under President Xi Jinping has taken pride in its standing as an elite member of the club of wealthy nations, would rashly unload the securities it has amassed over the years.

Liverpool wants to sign Keita in winter market
The Reds struck a deal for the Guinean midfielder last summer, with the deal stating that Keita would arrive at Anfield in the summer of 2018.

Of course, regardless of the eventual reason behind such a move, the idea that China's holdings of U.S. bonds won't still shrink coud turn out to be wrong.

The regulator added that forex reserves management agencies are responsible investors in global financial markets.

"China's showing that they have power in the relationship, as anyone who's a buyer of U.S. Treasuries does", said Eric Stein, co-director of global fixed income at Eaton Vance in Boston.

The greenback extended losses after data showed US producer prices fell for the first time in almost 1-1/2 years in December amid declining costs for services.

The Australian dollar bounced overnight and extended its gains to US0.6¢ at US78.70¢ after domestic retail sales rose 1.2 per cent in November, triple forecasts, following the launch of the new iPhone X and solid Black Friday sales late in the month.

Russian Club Spartak Moscow Spark Racism Row With Offensive Video
Russia, billed to host the FIFA World Cup in June has a long history of racial prejudices and intolerance. Spartak later posted a video in which Fernando says: "At Spartak there is no racism".

For now, investors appear to have accepted the benign view. The VIX implied volatility index, the markets' so-called "fear gauge", hovered just above 10 on Thursday, from as low as 8.92 on January 2.

Like the initial report, financial markets have reacted hastily to the news, bidding up both the U.S. dollar and treasuries in response.

The PBOC is the second largest holder of US Treasuries in the world, after the Federal Reserve, and is estimated to have some $1.2 trillion of the bonds inside of its foreign exchange reserves.

The U.S. central bank's preferred inflation measure, the personal consumption expenditures price index excluding food and energy, has undershot its target since May 2012. It may also have to increase the rate of interest it pays. "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 would try to diversify".

Falcons QB Matt Ryan seeks happy homecoming in Philly
Gagnon writes Alford outplayed Desmond Trufant and Keanu Neal in the Falcons secondary Saturday against the Los Angeles Rams. Eagles defensive coordinator Jim Schwartz knows Ryan's ability to handle the blitz as an experienced veteran quarterback.

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