Will China dump US bonds as a trade weapon?

The trade war between Beijing and Washington has stoked concern in financial markets that China might opt to weaponize its holdings of more than $1.1 trillion worth of US Treasuries in retaliation for the tariffs the Trump administration has imposed on Chinese imports. Often referred to as the “nuclear option,” choosing to dump so large a pool of assets would likely destabilize world financial markets, drive interest rates higher and push tensions between the world’s two largest economies into uncharted territory. Here are some key points about China’s Treasuries portfolio. (Source: Reuters)

from Economic Times http://bit.ly/2I3sa9l