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Michael Leister, Rates Strategist at........>

US TSYS
US TSYS: Michael Leister, Rates Strategist at Commerzbank comments on the recent
Bloomberg headline that China recommends slowing of Treasury buying.
- Last Oct, China held $1.3trn of USTs, down $300bln from its peak seen in 2014.
In 2015, "fears of an imported tapering" prompted a tightening of $ swap
spreads. 
- Leister writes that today's headlines will "underscore concerns that the
fading global QE bid will trigger lasting upside on developed market yields" but
"lower UST purchases imply higher purchases elsewhere, and it will be difficult
to circumvent Bunds and OATs given the lack of alternatives with sufficient
size, liquidity, rating and FX vol."

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