Discount Rumors Of PBoC US Bond Sales: Michael Pettis

The People’s Bank of China’s reported liquidation of U.S. government bonds will have only a temporary impact and investors should see any weakening of the U.S. bond market as a buying opportunity, notes Michael Pettis.   [dalio] Michael Pettis of GlobalSource Partners in his August 28, 2015 report titled: “The PBoC is selling US Treasuries” notes the PBoC is the biggest single holder of U.S. Treasury and agency bonds by far.     Drop in China’s forex reserves Citing Xinhua’s recent reports, Pettis points out that China’s foreign exchange reserves dropped to 3.65 trillion U.S. dollars by the end of…