Chinese Government Burdened US Shares

US equities have slightly weakened as China government is thinking about reducing or freezing its buying of US Treasuries. If China do decides doing so, US economy will get harmed and the idea of 3 rate hikes will become very questionable.

Initially, US 10 year yield responded with gains but now it has calmed down. Overall, this day, the yield lifted 3 bps. Oil keeps growing, having reached the 3-year maximums. This came as a result of a serious drop in inventories. Yesterday, Bank of Japan reduced its long-dated bond purchases by 10 billion and some considered it as a first step in the stimulus exit. But, Bank’s officials deny all those speculations.