China has been on the bid
A report today said that China is reversed Treasury sales in February/March and is continuing to buy.
"The nation has maintained the trend, said the people, who asked not to be identified because they aren't authorized to comment on the matter publicly," Bloomberg reported. "China's shift to buyer of Treasuries coincides with a four-month rally that's reversed much of the selloff triggered by the U.S. election in November."
That's not a coincidence.
It's also a political problem. Buying Treasuries helps to keep the yuan depressed and that's the kind of thing that could irk Washington.
