Via Adem Tumerkan @ Palisade-Research.com

– This is a repost of the recent Palisade Weekly Letter –

Earlier this week – news went by relatively unnoticed by the ‘mainstream’ financial media (CNCB and such) that Beijing’s started selling their U.S. debt holdings.

Putting it another way – they’re dumping U.S. bonds. . .

“China’s ownership of U.S. bonds, bills and notes slipped to $1.17 trillion, the lowest level since January and down from $1.18 trillion in June.”

Remember – dumping U.S. debt is China’s nuclear option (which I wrote about back in April – click here to read if you missed it).

And although they’re starting to sell U.S. bonds – expect it to be at a slow and steady pace. They don’t want to risk hurting themselves over this.

I believe China may be selling just enough to get the attention of Trump and the Treasury. A soft warning for them not to take things too far with tariffs and trade.

Yet already just as news hit the wire that China was selling bonds a few days ago – U.S. yields spiked above 3%. . ….more here