What China’s Treasury Liquidation Means: $1 Trillion QE In Reverse
by Tyler Durden
ZeroHedge.com
08/27/2015
The size of the epic RMB carry trade could be as high as $1.1 trillion. If China were to liquidate $1 trillion in reserves (i.e. USTs) in order to stabilize the yuan in the face of the carry unwind, it would effectively offset 60% of QE3 and put around 200 bps of upward pressure on 10Y yields. So in effect, China’s UST dumping is QE in reverse – and on a massive scale.
The Rest…HERE
