The New York Times reports: China has bought more than $1 trillion of American debt, but as the global downturn has intensified, Beijing is starting to keep more of its money at home, a move that could have painful effects for American borrowers.
I have no doubt, Dear Reader, that you’re way out in front of this story, which is finally hitting the mainstream outlets. I mean c’mon – we’ve believed that Chinese demand for US debt was likely to slow for months.
Unfortunately positioning ourselves in front of this trend hasn’t been a profitable move – at least yet. The 10-Year Treasury Note continues to hold strong, just below historic highs.
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