China boosted its holdings of U.S. Treasury debt for the first time in six months. That development could ease concerns that lagging foreign demand will force the U.S. government to pay higher interest rates to finance its debt.
I guess China is no longer so enthralled with dethroning the dollar as the world's reserve currency. Such a move would imply having something stable on hand as an alternative, and the euro may not have enough life left in it to fit the bill. Note to IMF: Bring on those gold-backed SDRs. Those should be Plan A, not a periodic trail balloon.
Helicopter Ben gets a reprieve on lifting interest rates to keep investors at the table! Note to Fed: Don't get too excited, as the euro's brittle condition does not mean bond investors give ZIRP a ringing endorsement.
