President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Bond yields could be driven "sharply" higher if China deploys the so-called "nuclear option " in its escalating trade war with the U.S., a senior strategist told CNBC Tuesday.
Torchwood Capital Senior Advisor Giles Keating told CNBC's "Squawk Box Europe" that Chinese excess savings had flooded into capital markets and had driven yields down.
"If that is now reversed, because China stops buying all those Treasurys, then bond yields can, I'm afraid, move up really sharply," he added.
While such a move could potentially trigger a massive rise in interest rates on U.S. government debt, causing plenty of damage to the U.S. economy as they are a benchmark for all sorts of loans, other analysts have suggested it is unlikely due to the pain it could inflict on home soil.
BlackRock head of Asian Credit, Neeraj Seth, told "Squawk Box Asia" Tuesday that while China may not be aggressively buying more U.S. government notes, it is not actively selling in the market either.
China still holds about $1.13 trillion of U.S. Treasurys, a 4% decline over a 12-month period, but that this is "nothing significant," he said.
He also dismissed the possibility of China looking to swap Treasurys with other government notes, adding that there aren't enough "high-quality risk-free assets" on the market.
This sentiment echoed a note Monday from Deutsche Bank macro strategist Alan Ruskin, who suggested such a move would be too disruptive for the world's second-largest economy.
"The 'dissolution of Chimerica' includes a retreat from China's central role in supply chains, but also China's supply of cheap U.S./global financing," Ruskin said in a research note.
He highlighted that the latter has been drying up anyway after China reserves topped out in 2014, adding that the "difficulties in finding liquid market alternatives is central to China's reserve allocation dilemma."
Ruskin projected that a "dumping" of Treasurys would be "disruptive for all markets inclusive of China's own reserve assets and even more important its own asset markets," and said the much more likely approach is a "slow structural bleed" in China's U.S. bond holdings.