Why did China issue this directive to banks to trim their exposure to Treasuries now?
Lizzy Burden
Ven Ram
It's part of an ongoing saga of China trying to maneuver away from US dominance in investments. It's a big ship turning around, moves will be gradual.
Do you think it's going to last? We also have European bond yields higher.
Lizzy Burden
Ven Ram
It is going to weigh on long-dated Treasuries. The risks are to the upside in terms of yields.
Trump's Fed Chair pick Kevin Warsh called for new Fed Treasury Accord. What's that likely to entail?
Lizzy Burden
Ven Ram
On face, Warsh has been keen on shrinking Fed balance sheet, but story suggests he may have to collude with Treasury. Treasury wants lower yields, not balance sheet shrinking that tightens financial conditions.